Sino-Forest investigation won't address value of trees

An investigation into claims of fraud at Sino-Forest (TRE.TSE) will not include a valuation of trees held on the company’s books, a key question raised by the allegations from short-seller Muddy Waters earlier this year, The Wall Street Journal reported. Shares in the company fell 65%, and trading of the stock on the Toronto exchange has been suspended since August. A special committee of the board of directors hopes to complete its probe by the end of the year, and said in a report it had not found any fraud at the company. The investigation originally intended to include a third-party valuation of the timber, but the effort was abandoned over concern of the firm’s independence from Sino-Forest. A company spokesman said the committee’s report at year end won’t include the valuation information.