Short-seller Carson Block certainly has a nose for fraud… in China. He’s uncovered it time and time again, very much not losing sight of the forest for the trees, reading the coffee grinds, and finding off smells in paper factories, docks and classrooms of the Middle Kingdom.
But China, large and full of potentially fraud-filled companies as it is, cannot contain Block’s ambitions. Neither can the threat of prosecution or legal action. So Carson the fraud-sniffing dog is taking his billion-dollar beak to new geographies both near and far: Having taken on a Maryland-based energy company this summer, Block is taking on a Uruguayan payment processing firm during its summer.
"If these were serious people who really wanted to run a payments company for the long term, they wouldn't have sold a billion dollars worth of the stock in the first five months of the company going public," said Block in an investor presentation [on Dlocal Ltd.]…. "A spate of recent high-level departures brings to mind the idiom, 'rats fleeing a sinking ship,'" says the report.
Suffice it to say, Block will be on the lookout for any South American men with fake-looking mustaches seeking an audience.
Muddy Waters' Block short in dlocal, cites 'red flags' at conference [Reuters via Yahoo!]
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