Sino Forest felled by fraud claims

Sino Forest's share price has plummeted amid accusations of substantially overstating the value and size of their forestry holdings.

Shares in Chinese forestry group Sino Forest (SF) have fallen by more than 90% on the Toronto market since 2 June, when short seller Carson Block alleged that SF overstated its assets and routed money through a murky web of intermediaries to defraud investors. The company has established an independent committee to look into the matter, with a report expected in three months. This week, billionaire hedge fund manager John Paulson, previously SF's top shareholder, ditched his stake.

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