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  "docSlug": "2df2f979ea6a",
  "documentTitle": "China Internet Nationwide Financial Services Inc. (CIFS)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-12-20 00:00:00",
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  "notes": "The slide uses investigative findings to expose sham counterparties and fake loans.",
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      "text": "Jingsu’s office address – as provided in CIFS’s prospectus and confirmed in its SAIC file – actually leads to a dead end (very typical of China fraud sham counterparties): the fifth floor of an orthopedic hospital.",
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      "text": "Photographic evidence of the orthopedic hospital address",
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      "text": "II. Xiamen Jingsu Trading Co. Ltd. (厦门径速贸易有限公司) appears to be a sham counterparty, and therefore a fake loan. In 2016, CIFS purports to have loaned it a total of $2.6 million. Jingsu’s SAIC file shows zero revenue from 2014 through 2016. The entity is almost certainly effectively controlled by Chairman Lin, as its SAIC file shows the same contact phone number as two disclosed related parties: Xiamen Luye Trading Co. Ltd. and Xiamen Beiruichen Trading Co. Ltd. Jingsu’s office address – as provided in CIFS’s prospectus and confirmed in its SAIC file – actually leads to a dead end (very typical of China fraud sham counterparties): the fifth floor of an orthopedic hospital. (There was no sign of Jingsu Trading there.) Pictures from our investigators’ attempted visit:",
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      "kind": "paragraph",
      "text": "Ailirui’s SAIC file shows that it was almost certainly effectively controlled by Chairman Lin, which reinforces our view that Ailirui is a sham counterparty. Companies are required to provide SAIC with their contact information, including telephone numbers, email addresses, and physical addresses. It is a staple of China fraud detection to look for linkages in SAIC contact information, which is included in publicly available SAIC files, to establish undisclosed related parties. Once again, Ailirui does not disappoint.",
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      "text": "In 2015, Ailirui’s registered phone number with SAIC was the same as that of a company owned by Chairman Lin and his trusted sidekick Huang Shaoyong. This other company, Ding Zhi Tai Da Wealth (Beijing) Financial Service Outsourcing Co. Ltd. (“DZTD”), is the one running the likely illegal P2P lending business, which we discuss in a later section. The phone number at issue is 189 1020 0801. As we show later, that same number in 2015 also shows up as the number for the selling shareholder of CIFS’s recent “big data” acquisition (spoiler alert: that transaction also looks like total bullshit), Beijing Tianhuang Tongda Technology Co. Ltd. (“BJ Tongda”). In 2016, both Ailirui and BJ Tongda changed their shared SAIC contact phone number to the same new number: 158 1077 6839. Ailirui and BJ Tongda also have the same contact emails: 787856583@qq.com.",
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      "kind": "source-note",
      "text": "10 Sidekick Huang is Chairman Lin’s nominee 1% shareholder in both BJ and Kashgar SYX. 11 From p. 49: 5th floor, No. 22 Dongpu Road, Siming District, Xiamen.",
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