Sino-Forest Faces ‘Herculean’ Task After Ponzi Scheme Denial

Sino-Forest Corp. Chief Executive Officer Judson Martin, a former real estate and television executive, is trying to put an end to five months of turmoil for the forestry company beset by accusations of fraud.

Martin, who replaced company founder Allen Chan as CEO in August, said yesterday that an investigation by an independent committee showed Sino-Forest isn’t a “Ponzi scheme” as alleged by Muddy Waters LLC, a research firm. Since Muddy Water’s report was published in June, Sino-Forest’s stock has plunged 74 percent and Canadian regulators and police have started their own probes.