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  "documentTitle": "China Internet Nationwide Financial Services Inc. (CIFS)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-12-20 00:00:00",
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      "text": "CIFS is in our opinion an old style China fraud, and is worthless.",
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      "text": "One might point out that BJ SYX does have an ICP license. However, there is absolutely no reason for it to – just as there is no reason to put the word “Internet” in the name of this company, which, even if taken it at its word, does business the incredibly old fashioned way of personal relationships. Also, as we pointed out, Chairman Lin and Sidekick Huang use that ICP license for their Ding Zhi P2P mini empire. We therefore conclude structuring this as a VIE is just another way of giving the finger to U.S. investors.",
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      "text": "Like almost all of the China frauds that went public in the U.S., CIFS is structured as a “variable interest entity” (or “VIE”). Whatever value – if any – in this business is therefore directly owned by Chairman Lin. Shareholders own a company that has a contract with the operating business. Chinese internet companies traded in the U.S. are all structured in this way, but that is for legitimate legal reasons. Foreign ownership of companies that have ICP licenses (internet business licenses) is prohibited. There is no reason to structure CIFS as a VIE other than to make going public the ultimate asymmetrical trade for Chairman Lin: Steal money from U.S. investors, run almost zero risk of being imprisoned, and not even risk ownership of the operating business.",
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      "text": "31 CIFS F1, p. 6.",
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      "text": "Heads Lin Wins, Tails You Lose: Another Unnecessary VIE",
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