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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": "The slide presents evidence of financial discrepancies and potential fraud involving fake counterparties.",
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      "text": "The Purported Borrowers CIFS Discloses All Appear to be Sham Counterparties",
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      "text": "Net income: 6,840",
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      "kind": "paragraph",
      "text": "The backbone of China fraud is creating fake customers and suppliers. We understand that out of the literally hundreds of China stock frauds perpetrated on U.S. investors, only one company chairman has ever gone to jail for these crimes.",
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      "kind": "paragraph",
      "text": "BJ SYX 2016 SAIC financials are below.5 Kashgar SYX was formed only two days before the end of 2016, and reported to SAIC zero assets, liabilities, equity, revenue, and net income.",
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      "kind": "paragraph",
      "text": "It is not surprising that there is a tiny amount of revenue in the VIE. All of these China frauds have a kernel of truth. That said, we suspect that the character of the revenue is quite different than CIFS's purported business.",
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      "text": "CIFS discloses the identities of four of the six purported borrowers to which it lent money in 2015 and 2016. Purported loans to these four purported borrowers equaled 84.2% of the combined loan balances CIFS shows on its 2015 and 2016 balance sheets.",
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      "kind": "paragraph",
      "text": "the smoking gun in SAIC financials. We suppose we owe thanks to CIFS for setting its fraud time machine far enough back that it did not submit fraudulent financials to SAIC.",
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      "text": "5 BJ SYX's 2015 SAIC revenue was $10.1 million, which exceeds reported revenue; however, as we discuss in a later section, this revenue appears to have come from a likely illegal P2P business...",
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      "text": "BJ SYX 2016 table with Assets, Liabilities, Equity, Revenue, Main rev, Pre tax income, Net income in Rmb000 and US$000",
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