Block will join
the former Chief Commissioner of the Malaysian Anti-Corruption Commission and
other experts at the 2020 ACFE Fraud Conference Asia-Pacific this
Carson Block, the founder and Chief Investment Officer of
Muddy Waters Capital LLC, made headlines at the beginning of 2020 when he
posted a report to Twitter accusing Chinese coffee company Luckin Coffee Inc.
of fraudulently inflating sales. In April, the company admitted that more than
$300 million of its sales from 2019 were fabricated. Block told the ACFE that
when he’s looking at companies to short, he starts with the basics. “It usually
starts with companies or stories that seem ‘too good to be true,’” he said.
“Then we read transcripts of senior managers speaking to see how promotional
the management seems to be.”
He believes that fraud is unfortunately a common problem in
certain markets. “This really needs to be looked at in the context of emerging
and frontier market-based issuers,” he said. “Those environments are rife with
fraud, and their public companies reflect that. When the companies are listed in developed
markets, the regulators’ reach is quite limited, which provides even less
disincentive to commit fraud.” Block will address attendees at the
virtual 2020 ACFE
Fraud Conference Asia-Pacific, 24-25 September. He said that he
hopes he can show attendees that “investors’ perception is easily manipulated.”
Block will be joined by other experts including the
former Chief Commissioner of the Malaysian Anti-Corruption Commission Latheefa
Koya, social scientist Dr. Attracta Lagan, expert on the future of work Su-Yen
Wong and others.
Dr. Lagan, the co-principal of Managing Values, told the
ACFE that one of the most common mistakes business leaders make is overlooking
the importance of establishing an ethical culture. “Behavior science research
shows us that rather than depending on character training, it is more effective
to begin with a clear strategy for how leaders will intentionally design their
organizational policies and systems to enable an ethical culture to emerge,”
“Assuming fraud is the consequence of policy failure
instead of seeing fraud as a symptom of an unethical culture enables fraud to
flourish.” Dr. Lagan wants attendees to challenge their assumptions about what leads
to fraud. “Fraud examiners need to be aware of just how influential
organizational culture can be … their members either do not recognize their
ethical slippages or they feel they have no choice.”
Concurrent sessions will include discussions about anti-money
laundering, emerging cyber risk factors, smart contracts and more. This
conference is an invaluable opportunity to hear from today’s anti-fraud leaders.
for more information.