China Government on Side of Investor Fraud Claims Muddy Waters Founder

November 27, 2012 2:34 PM EST
Carson Block, founder of Muddy Waters Research, made statements today that, if true, should scare the daylights out of anyone thinking of betting on China stocks, or against them.

"China has gotten harder in the sense that the government has really taken the side of the frauds. The government is working with a number of these companies to try to conceal records that are public. When you are up against that sort of strength of the ability to revise history, it becomes very difficult," said Block during an interview with Bloomberg Television’s Stephanie Ruhle.

He is no longer interested in China given the government's involvement in the fraud conspiracy.

Today Block, a well-known short seller, made news when he dumped hot coals on the head of Singapore-based commodity trading firm, Olam International, issuing a 133-page report trashing the company and comparing it to Enron.

Olam responded to the allegations with denials and threats to hold Muddy Waters accountable for any damages.

So far there has been no response from China’s government regarding the fraud conspiracy charges.

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