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China Forest Says Former Executives Faked Bank Documents

China Forestry Holdings Co., partly owned by Washington-based private equity firm Carlyle Group, said a probe into irregularities of 2010 financial statements found the former management team was the source, according to a statement to the Hong Kong stock exchange today.

The bank statements provided by China Forestry’s previous executives to auditor KPMG LLP which were falsified, the statement said. There were also inconsistencies in the company’s insurance policies and logging permits for about 100,000 cubic meters of wood were faked.