More frauds are being uncovered in China. This article tells the story of one hedge fund manager who is being sued for what appears to be a factual report. Some snippets:
"Everything Barnes wrote was backed up by veteran investigator accounts, photos, multiple onsite interviews and the company’s Chinese filings."
"If he stood by his report, as was his wont, his less than a year old fund would be engaged in a multi-year legal battle with a company that had nothing to lose and could use its working capital to pay its legal bills."
"On August 1, another person called the Absaroka lawyer and told them to drop the investigation or else the caller “Would come down hard on [the lawyer.]”
There is also the possibility that the fraud goes much higher up the food chain than this one company. Apparently, the company's statements filed in China (which were vastly different than those filed in the US in terms of claims of the company's size) have gone missing!