The trial judge identified four different, but related, frauds
for which the appellant was responsible and one other transaction
in which there was a breach by the appellant of his fiduciary
duties. I summarize these below.
(a) The BVI model fraud
 The most significant fraud found by the trial judge had to do
with the reporting, on SFC’s consolidated financial statements, of
assets held and revenue and income generated under the BVI model.
 The BVI model involved SFC subsidiaries incorporated in
the British Virgin Islands (“BVIs”). It was designed in light of
restrictions at one time imposed by the PRC under which foreign
entities were not permitted to have PRC bank accounts, operate
or sell timber plantations, or own land use rights in the PRC.
 To circumvent these restrictions, the BVI model contemplated that SFC’s BVI subsidiaries would acquire standing timber
from third parties known as “Suppliers”, who in turn would
acquire it from others, typically rural or business collectives. The
BVIs would sell standing timber indirectly, through authorized
intermediaries (“AIs”) that acted as their customers. The BVIs
would not pay the Suppliers or receive payment from the AIs.
Instead, the AIs and Suppliers would be directed to set off payments so that payment from an AI for the sale of standing timber
rights would be rolled forward into the purchase of new BVI
standing timber rights from a Supplier. Consequently, no cash
would flow through the BVIs’ or SFC’s bank accounts in connection with the BVI standing timber and money associated with the
BVI standing timber would be locked up in the PRC to be rolled
forward into further BVI standing timber purchases.
 Under the BVI model, the BVIs would not acquire actual
land use rights in the PRC. Instead, they ostensibly would acquire
a contractual right to the standing timber itself.
 As noted above, significant valuable assets were reported
by SFC as held, and revenue and profit-generating activity was
reported as occurring, under the BVI model. By the second quarter
of 2011, SFC’s consolidated financial statements showed BVI
standing timber assets valued at $2.99 billion. Trading under that
model was the biggest contributor to the revenues and profits
shown on the statements.
 After the Muddy Waters Report, the Independent Committee
was, however, unable to locate key documents to confirm valid
title to the BVI standing timber or to even determine its location.
Collections of accounts receivable from AI’s, which had been represented to take place with 100 per cent success, dropped to close
to 0 per cent. Consultants retained by SFC’s creditors were also