“These are bad people for me. They are my enemy. I am raped. I tell police. Right? The police sometimes do contact me and with us. We are victims. We are big taxpayers in the Luoyang County,” Mr. Feng said in a telephone interview from Beijing.
When asked why the hotel receipts for the PSB officer were made out to a division of Silvercorp, the CEO suggested they were fakes. He noted that it is relatively simple to create false receipts in China.
As for the allegation that the PSB had used a company car to transport Mr. Huang, the Silvercorp CEO suggested that Mr. Huang had recorded the car makes and licence plates of the mining company’s vehicles when he and other researchers were secretly videotaping the company’s operations in 2011.
Mr. Feng also denied that Silvercorp has received any information from the Luoyang PSB that was obtained from the investigation. When asked about the addresses and phone numbers submitted in New York court, Mr. Feng said some of the data was publicly available on the Internet while other parts were uncovered by Silvercorp’s own investigators.
EOS founder Jon Carnes said Mr. Feng’s explanations were “preposterous.” In an interview in Vancouver, Mr. Carnes said that the data entered into court by Silvercorp could only have come from Mr. Huang’s laptop as his own laptop and that of another associate with the same information had not been compromised. He confirmed that one of the “phone numbers” filed in New York court was, in fact, his wife’s Asia Miles frequent flier number.
Mr. Carnes conceded that he currently has a $2-million (U.S.) short position on Silvercorp shares and will benefit financially if the stock declines. He pointed to his lengthy track record of exposing frauds or unscrupulous behaviour at other Chinese companies as proof that he and his researchers are not fabricating evidence in Mr. Huang’s defence.
“In the Silvercorp case, I would say I have absolutely no reason to fabricate any of this stuff. I have built up a substantial track record exposing fraud and to do something as stupid as fabricating evidence would be stupid,” Mr. Carnes said.
Huang Kun’s father, Huang Youcai, said he just wants his son to get out of China. In an interview from his Vancouver home, the elder Mr. Huang said he and his wife were unaware of his son’s legal troubles until he was arrested for the second time in July and lost all communication. Now Mr. Huang is pleading with the Canadian embassy in Beijing and the Department of Foreign Affairs in Ottawa for help.
Ms. Wang, the lawyer, said the Canadian embassy has met with Mr. Huang twice, including once in the Luoyang PSB office since his most recent detention. “The embassy says it will go on working through diplomatic channels but they’re not sure how much effect they will have,” she said.
Before his latest arrest, Huang Kun said he was worried that Silvercorp’s connections to the police investigation meant he would likely spend a prolonged time in jail.
“Yeah, of course I’m worried … there’s not enough evidence to charge us, but [the police] are getting pressure from the higher officials – the provincial level and the federal level … to investigate this case and punish us,” he said in mid-May, drinking green tea in the lobby of a five-star hotel in Beijing while out on bail.
“The law in China is very flexible.”