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  "documentTitle": "Sino-Forest Corporation (TRE)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-06-02 00:00:00",
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  "notes": "The slide uses a list of 'did not' statements to emphasize the lack of substance in the transactions.",
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      "kind": "callout",
      "text": "In other words, TRE would not pay any money because the AI would be “reimbursed” when it sold the chips.",
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      "text": "did not commit capital to purchase the logs, did not enter into contracts to purchase the logs from suppliers, did not take title to the logs, did not at any time store (let alone view) the logs, did not commit capital to process the logs into wood chips, did not contract to process the logs into wood chips, did not market the wood chips, did not enter into contracts to sell the wood chips, and did not receive cash from the parties purchasing the wood chips.",
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      "text": "Instead it “agreed to reimburse the costs of the AI, including the cost of the purchase of raw timber, and to pay both a processing fee and management fee...” However, “...all of [the aforementioned fees] are deducted from the sales proceeds of the wood chips.” In other words, TRE would not pay any money because the AI would be “reimbursed” when it sold the chips.",
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      "kind": "paragraph",
      "text": "According to the description in its 2006 annual information of how these transactions worked, TRE (through the magic of AIs) booked revenue and profit, but",
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      "kind": "paragraph",
      "text": "In order to make these transactions into accounting quasi-reality, TRE assumed “all risks and obligations relating to the raw timber once it arrives at the premises of the AI until it is processed into wood chips, except for any loss arising as a result of the AI's default.” As the same filing specifies, the AI assumed the risks and obligations of the timber at all other times – from the time it is purchased until title passed to the customer. The below diagram illustrates the purported transactions:",
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      "kind": "quote",
      "text": "“agreed to reimburse the costs of the AI, including the cost of the purchase of raw timber, and to pay both a processing fee and management fee...” — 2006 Annual Information Form",
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