Muddy Waters Claims on China Companies Are Unproven, Arbess Says

Assertions by short seller Carson Block that Sino-Forest Corp. and Focus Media Holding Ltd. lied about their businesses have yet to be proven, said Daniel Arbess, manager of Perella Weinberg Partners LP’s Xerion funds.

“The jury is out as to whether something like Sino-Forest or something like Focus Media is a total fraud,” Arbess said at the Bloomberg Hedge Funds Summit in New York, where Block was a guest. “Carson better be right on these things, because if he isn’t, then he will have to do something else.”