RINO International (RINO US)

Rino manufactured, installed, and serviced wastewater treatment and flue gas desulphurization equipment for the steel industry.

In November 2010, Muddy Waters issued a short sell report claiming that revenue was inflated and assets did not exist.[1] According to litigation documents, the company’s Chinese Books reflected sales of approximately $31m between 1Q08 and 9M10. The U.S. Books for the same period reflected sales over 15x that amount, or approximately $491m. Auditors, Frazer Frost, discovered that offering proceeds were diverted to buy a US$3.5m house in Orange County and for personal expenses.[2]

On November 18th 2010, Rina released a Form 8-K conceding that its 2008 and 2009 accounts should no longer be relied upon.

[1] Muddy Water: RINO International Corp., 10 Nov 2011

[2] US District Court: Legal Document, 15 May 2013

RINO International: Annual Report 2009

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