Canada Regulator Accuses Silvercorp Short Seller of Fraud
Karen Johnson, 19 December 2013
TORONTO—British Columbia’s provincial securities regulator accused hedge fund manager Jon Richard Carnes of fraud when he wrote negative reports about Silvercorp Metals Inc. to profit from its falling share price.
In a statement Thursday, the British Columbia Securities Commission said starting in 2010, Mr. Carnes, who operates the “Alfred Little” financial blog, wrote negative reports about companies that traded on a North American exchange and operated in China. It 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.
