Glenn Chan

2/ that the SGX mine required extensive underground tunneling and that his use of the phrase expensive tunneling was simply a [typo]

3/ I had no idea that regulators can go after people based on "balance of probabilities". A lower bar than in criminal cases.

4/ "Given how carefully the Alfred Little report was drafted, we do not accept that this was simply a typographical error." Um, what?

5/ Audited financial statements and NI 43-101 reports have typos all the time. This panel strikes me as biased.

6/ "We find Carnes’ claim that his conduct had a public benefit to be specious and selfserving." So... exposing fraud has no public benefit.

7/ "On August 15, 2011, Eos purchased $4.1 million of Silvercorp put options that would expire on September 17, 2011."

8/ "On September 14, Carnes closed his short position and made a total profit of $2.8 million." That seems like a disappointing profit.

9/ However, I may be misreading things. $4.1M is probably the theoretical maximum profit from the puts if SVM went to 0.

10/ Carnes "closed" his position a few days before expiration. I'm guessing he didn't exercise early and still had (meaningless) position.

11/ He probably made a few to several times his money on his puts, given the drop in share price and illiquidity of deep OTM puts.

12/ "Carnes carefully crafted the [..] report to [...] create the most damaging report to drive down the price of Silvercorp shares." Agree.

13/ (paraphrasing here) Carnes used an inflated/fake bio, fake research group, and fake impression of multiple contributors.

14/ I'm surprised that Carnes' anonymity was blown and presumably his emails were subpoena'ed. That seriously sucks.

15/ No mention of Kun Huang, Carnes' researcher who was wrongfully imprisoned in a Chinese jail. Fucked up what happened to him.

16/ Talked to @carnesjon. He says he had deep-in-the-money options (as well as short position in the common).

17/ The managing's director's argument about options expiration seems dubious. Deep ITM options are very similar to shorting the common.

18/ If the director was required to have a CFA (?portfolio managers in Canada need a CFA or CIM?), I think he would've understood options.

19/ Regardless, the correct argument was to say that writing a damaging report on a company increases the short seller's rate of return.