Canada watchdog accuses Silvercorp short seller of fraud
Cecilia Jamasmie, 20 December 2013
Canada’s British Columbia’s provincial securities regulator has accused hedge fund manager Jon Richard Carnes of fraud committed by writing a false negative report in 2011 about Silvercorp Metals Inc. (TSX, NYSE: SVM) to profit from its falling share price. According to BC Securities Commission, Carnes —who operates the Alfred Little financial blog— began writing negative reports about companies that traded on a North American exchange and operated in China in 2010. The body alleges he sought to profit from his negative reports by shorting—or betting against—the issuer’s securities before publishing the reports, and then covering his short position after the share price dropped in response.
