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  "documentTitle": "Orient Paper Inc. (ONP)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2010-06-28 00:00:00",
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  "notes": "The slide uses a 'fraud-exposure' logic to argue that the customer list churn is statistically improbable, suggesting fabricated sales data.",
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      "text": "This means one of two mutually exclusive possibilities is true: a) ONP churns and burns its customers and miraculously finds new ones to make up for the lost volume (plus 62.5%); or, b) that ONP is lying about its sales volumes to these customers (which is the possibility we believe).",
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      "text": "Our due diligence on the purported customers supports our fraud thesis in that a) in two 2008 cases, we confirmed that the purported purchasers were literally too small to purchase the amounts claimed; and, b) we are comfortable that for nine of the purported 2009 top 10 purchasers, it would be implausible to purchase from ONP in the volumes that ONP claims they did.",
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      "text": "At a glance, ONP's claimed lists of top 10 customers and purchase volumes for 2008 and 2009 are suspicious in and of themselves. ONP's 2009 top 10 customer list changed eight of 10 customers from 2008, while keeping constant the minimum threshold to make the top 10 roughly constant ($2.1 million). This means one of two mutually exclusive possibilities is true: a) ONP churns and burns its customers and miraculously finds new ones to make up for the lost volume (plus 62.5%); or, b) that ONP is lying about its sales volumes to these customers (which is the possibility we believe).",
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      "text": "26 December 31, 2009 Form 10-K, p. 9.",
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      "text": "Purported 2008 and 2009 Top 10 Customers list with volumes",
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