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  "documentTitle": "RINO International Corp. (RINO)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2010-11-10 00:00:00",
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  "notes": "This is a page from a Muddy Waters research report exposing corporate malfeasance.",
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      "text": "We doubt that the couple was unaware it was improper to borrow / take money from RINO. PRC Company Law article 149 clearly prohibits this action.",
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      "text": "Mr. Zou and Ms. Qiu borrowed “approximately $3.5 million” on December 7, 2009. This is the same day that RINO closed its $100.0 million financing. Two days later the couple bought a luxury home in Orange County, CA assessed at $3.2 million.",
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      "text": "While immaterial compared to their other sins, RINO management's “borrowing” $3.5 million to purchase a luxury home in Orange County gives insight to their character, as well as a window into the dynamics between management, RINO’s independent directors, and the Company’s auditor.",
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      "text": "Some have publicly stated that the couple took the loan out of naïveté about the complicated restrictions of being a public company. We doubt that. Based on the timeline of events and haphazard means of accounting for this loan, we wonder whether the couple volunteered that they had taken this money; or, whether the auditor uncovered it just before the filing deadline.",
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      "text": "We doubt that the couple was unaware it was improper to borrow / take money from RINO. PRC Company Law article 149 clearly prohibits this action. Might they have been unaware of this prohibition? We find that unlikely – stories of minority shareholders getting screwed by management borrowing / taking money from their companies abound in China’s newspapers and business circles. We are comfortable that they understood their duty not to take money from the company. They just didn’t care.",
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      "text": "If the latter, it begs questions of whether involved parties met their fiduciary duties. Further to that, the manner in which the home was used to secure the loan presents questions. Finally, RINO claimed that the couple repaid the loan by May 10, 2010; however, the home title was not re-granted to the couple by RINO until sometime between May 28, 2010 and August 18, 2010.",
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      "text": "The couple transferred ownership of the home to RINO International Corp. as security for the loan on March 22nd, 2010. This was just before the filing deadline, and makes us think that because they could have transferred it in the three and one-half months prior, it",
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      "text": "An engineer from a competitor who is familiar in a general sense with the Chinese Academy of Science CFB system stated that the system is problematic because it creates too much pressure. He was not familiar with RINO.",
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      "text": "33-37 Footnotes detailing RINO 10-K filings and legal documents.",
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