Beginning in April 2011 I wrote a series of reports exposing the massive fraud Sino Clean Energy (“SCEI”) conducted against its investors. SCEI’s chairman and chief fraud orchestrator Baowen Ren fought back hard, fabricating shipping records and production videos and hiring Loeb & Loeb to try to clear his name by suing those who exposed the fraud. SCEI then partnered with lawyers from Silvercorp Metals and Deer Consumer Products in a “war” against short sellers that allowed SCEI to perpetuate its fraud against investors for another year.
Knowing I was 100% right about SCEI I might have simply sat back and let my lawyers fight Ren’s frivolous defamation suit to victory, a victory that was assured after the New York Supreme Court in August dismissed Silvercorp’s frivolous lawsuit against me for violating my right to publicly express my opinion. However, I found it far more effective to further document SCEI’s idle factories and blow the whistle to regulators. The resulting trading halt and delisting came like a thief in the night to investors who, blindly trusting in SCEI’s defenders, ignored the overwhelming evidence of fraud.
While the lesson for investors is clear, the lesson for China Frauds is disturbing. SCEI would still be trading on NASDAQ today, continuing to defraud investors, if Baowen Ren had been wise enough to leave short sellers alone. Ren was rash to retaliate against short sellers while his factories sat idle. Ren overestimated the power of his legal team to convince regulators to ignore whistleblowers with an impeccable track record of exposing fraud.
In keeping with my commitment to only publish reports on Alfredlittle.com exposing Chinese U.S. listed companies that continue to retaliate against critics via physical threats, violence, corruption of the Chinese police or abuse of the U.S. legal system, following SCEI’s delisting and withdrawal of its lawsuit against me, I will remove all reports on SCEI from Alfredlittle.com. Munus explendum!