Chinese law enforcement agents have informed Silvercorp Metals Inc. (TSX:SVM) (NYSE:SVM) that they have opened a criminal case and will try to trace anonymous fraud allegations against the company.
The company filed a lawsuit with New York County Supreme Court in September against several organizations and individuals, including Chinastockwatch.com, Alfred Little, Simon Moore and Jerry Katz for allegedly spreading “false, defamatory and fraudulent” information about the company via the Internet.
Despite an independent forensic report by KPMG that refuted the allegations, Silvercorp said it is still receiving anonymous calls and emails about the allegations.
On November 1, Silvercorp got a call from someone that the company believes was trying to elicit information that he could later use against the company.
The company also claims it received several emails in November from an employee of Guidepoint Global LLC in Singapore that Silvercorp believes were attempts to gain insider information for trading purposes.
Silvercorp was not available for comment as of press time. At press time, Silvercorp’s share value had increased by $0.05 to $6.57.
Emma Crawford