Confirmed: Fraud At Rino International (RINO)

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08:05:27 pm on November 19, 2010

While trading in shares of Rino International (RINO) remains halted during an accounting investigation, some facts are beginning to trickle out confirming that there is indeed fraudulent activity going on at Rino International (RINO). 

The independent auditors have said that CEO Zou Dejun told them two of the six contracts in question by Muddy Waters are invalid, but that the others are legitimate and can be verified.  The firm says that the financial impact can not be stated until further investigations are complete.  Barrons has been digging into this story and unable to come up with anything substantial.

The company issued a statement a few hours later stating that financial statements for the years 2008/2009 can no longer be relied upon and that it has authorized its auditor to take all steps to investigate.  Uh, this same audit committee that failed to catch the fraud in the first place?  That will instill confidence!  Rino Intl better remove its current auditor Frazer Frost and hire an outside firm.  Maybe shares will hit the Muddy Waters target of $2.50 when it opens for trading.

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