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  "documentTitle": "NQ Mobile (NQ)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-10-24 00:00:00",
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  "notes": "This is a text-heavy research note page detailing investigative findings regarding NQ Mobile's alleged fraud.",
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      "text": "The NQ payment portal's lack of functionality is clear affirmation that NQ is a fraud.",
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      "text": "In committing fraud, it can be almost as important to avoid legitimate transactions as to record fake ones. We theorize that the reason NQ's payment portal does not work is that it would make it more difficult to fool its auditor if NQ were receiving legitimate payments...",
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      "text": "The NQ payment portal's lack of functionality is clear affirmation that NQ is a fraud. The cosmetic portal calls to mind John Hempton of Bronte Capital's exposé of Universal Travel Group... It does not process payments, and NQ's customers have not noticed because, by and large, they do not exist.",
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      "text": "NQ's claims that its security apps are on approximately 55% of smart phones in China is patently false. Two independent market research firms have pegged NQ's market share as less than 35% - often much less. Our own surveys... yield market share of only 1%.",
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      "text": "service. Alipay customer service stated that NQ is not a partnering merchant, which contradicts NQ's claim that it partners with Alipay. NQ also claims that Yeepay, which is not shown on NQ's site, is a payment partner. Yeepay confirmed that NQ is not a partner either.",
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      "text": "Alexa data evidencing minimal traffic to the payment portal shows that nobody besides short sellers noticed the problem, despite NQ claiming to have approximately six million paying customers in China.",
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      "kind": "quote",
      "text": "Bernard Madoff claims to have executed no real trades in his fraud – likely for this reason.",
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      "text": "35 NQ Mobile Investor Presentation 20130528, p. 13. 36 http://en.wikipedia.org/wiki/Madoff_investment_scandal 37 2012 20F. 38 iiMedia (Q2 2013) and RedTech (January 2011).",
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