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Silvercorp Metals Asks That You Not Believe Anonymous Letters Alleging Accounting Fraud Just Because They Have Assets in China

As we’ve discussed, companies listed on North American stock exchanges that happen to have ties to China haven’t faired too well. The problem? Some dodgy accounting and disclosures. It’s caused a lot of angst amongst investors and there was enough concern that someone actually decided to wake up the PCAOB and SEC to let them know that something might not quite right over there.

Today’s news that Silvercorp Metals, a Canadian mining company who happens to do some work in China, is the subject of a letter that is making the rounds alleging accounting fraud probably doesn’t come as a surprise to anyone but it sure has irked the hell out of the company.

The allegations against Silvercorp are “entirely bogus,” Lorne Waldman, a Silvercorp spokesman, said today in a telephone interview. “If we didn’t have assets in China this wouldn’t be happening.”

And while they’re at it, the company will have you know that they were not created in a one those so-called reverse mergers that have everyone sketched out.

Waldman denied the mining company was created in a so- called reverse takeover, as was Sino-Forest. He said that Silvercorp’s auditor is Ernst & Young LLP, the same firm that audited Sino-Forest’s financial statements.

Oh, right. Ernst & Young. There’s no cause for concern since they’ve seen this before so they’ll probably just sit tight to see what happens. The silver lining for Silvercorp is that Roddy Boyd has written anything about them. Yet.

Silvercorp Says Accounting-Fraud Allegation in Anonymous Letter Is False [Bloomberg]

CPA Suing Craigslist Vindicated by New Reviews

In Tuesday’s QOTD someone did not have kind words for Leo Kehoe, a Queens CPA. Specifically, “Watch out for this fraudulent scumbag! … He will botch up your tax returns and forget to submit them.” Scumbag? Fine. “Botch up” and “forget to submit” are also tolerable. Stuff like that happens (right?). What no CPA needs or wants, is their name associated with “fraudulent.”

Anyway, someone had a bad enough encounter with Kehoe that it demanded these words for anyone searching out both a CPA and perhaps some NSA coitus.


Mr Kehoe should be able to rest a little easier now as the Gothamist reported yesterday that a certain someone or someones has a completely different opinion on his services, “Leo Kehoe is a great CPA. He charged me a lower fee than what I had payed with someone else and he did a much better job,” and this one from yesterday, “Leo Kehoe: Much better than Cats. I’m going to see him again and again!”

Depending on your point of view, the “Cats” compliment may be worth far more than the $4 million that Kehoe isn’t likely to get but since accountants seem to be hung up on money far more than cultural comparisons, we expect him to continue moving forward with the lawsuit.

Accountant Sues Craigslist Over Negative Rant [Gothamist]

Dumb: Overstock.com Paid $7 Million for the Oakland Coliseum Naming Rights

While still involved in a lawsuit (the one that came about because of a Walmart sticker) with seven California counties, including Alameda where Oakland resides.


From the Chronicle’s Zennie62:

Did the Oakland Raiders say anything? What about anyone with the City of Oakland or the County of Alameda. Did they even know that the County was involved against Overstock.com in this way?

Moreover, how could the San Francisco Bay Area print media, normally derisive of bloggers like myself, miss this legal issue?

So, to close, we have two problems with the Overstock.com, Oakland-Alameda County Coliseum Stadium Naming Rights Deal: it’s way under valued at $7 million, and the firm that’s on the other side of the deal is being sued by the same County of Alameda it’s giving money to, and for allegedly fraudulent business practices.

Overstock Buys Oakland Coliseum Naming Rights While In California Lawsuit [SFC]