A few months ago, a French corporate security and intelligence consultant who may or may not have been working for a company that noted short seller Carson Block thinks sucks, put on a little pantomime for the Muddy Waters founder. Block was not impressed with Jean-Charles Brisard’s turn as a thespian.
As it turns out, that may be because Block himself knows how to play a part. Specifically, the part of “Dupre Analytics,” a company he made up to probe and then trashanother Chinese company. It was an Oscar-worthy performance, if you ask Block.
Mr. Block said Muddy Waters used an alias, Dupre Analytics , to allege in a July 2015 report that the founder of Chinese aluminum producer China Zhongwang Holdings Ltd., Liu Zhongtian, was committing fraud. The report claimed Mr. Liu used billions in loans from Chinese banks to secretly purchase his company’s aluminum and ship it overseas to facilities he controlled to make the company appear more profitable than it actually was….
Mr. Block said he sent investigators around the world to gather evidence to produce the report. His firm wrote the Dupre report in a disorganized way to ensure no one would associate it with Muddy Waters’ style, Mr. Block said….
Mr. Block said his firm made a only “very small profit” from trades around China Zhongwang—which he is no longer shorting—but considered it “the best work we’ve ever done.”