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  "documentTitle": "China Internet Nationwide Financial Services Inc. (CIFS)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2017-12-20 00:00:00",
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  "notes": "This is a classic short-seller research note (Muddy Waters style) exposing corporate fraud.",
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      "text": "We believe zero to almost none of CIFS's purported business is real.",
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      "text": "CIFS is too good to be true – claiming to turn a seeming commoditized business model into an overnight juggler with purported gross margins over 97%.",
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      "text": "CIFS's recently announced “big data” company purchase also appears to be a lie.",
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      "text": "Every one of the purported borrowers to which CIFS disclosed having made loans (accounting for 84.2% of loan balances) appears to be a sham counterparty.",
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      "text": "CIFS has disclosed doing business with two related parties, and even those loans and associated revenue appear to be fraudulent.",
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      "text": "We believe zero to almost none of CIFS's purported business is real. PRC financials show that CIFS overstated its 2016 revenue by 5x.",
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      "text": "47.3% of CIFS's reported 2016 net income purportedly was generated by its Kashgar subsidiary; however, that subsidiary existed for only two days in 2016.",
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      "text": "CIFS's corporate structure ensures that not only does Chairman Lin get to keep investors' money, but the ownership of his company is not the least bit at risk.",
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      "text": "revenue: 5x",
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      "text": "PRC financials make clear that CIFS is a fraud. We obtained the SAIC financials for CIFS's operating entities... These two entities account for all of CIFS's reported revenue and profit.",
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      "text": "We conclude that China Internet Financial Services Inc. (NASDAQ:CIFS) is a King Zero – just another worthless China fraud.",
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      "text": "4 CIFS F1, p. 11",
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