欢迎! 登陆 注册

高级搜索

Open Letter to Nature, Part XLIX: The Fangangsters (X): The Organization for Scientific & Academic Integrity in China is Shimin Fang’s Money Machine_1 (1943 查看)

January 03, 2016 01:11PM
【The PDF version of this article, which contains the complete notes, is HERE


Shamelessness Shouldn’t Be Anyone’s Nature──An Open Letter to Nature (Part XLIX)


Xin Ge, Ph. D.


Columbia, SC, USA



The Fangangsters (X): The Organization for Scientific & Academic Integrity in China is Shimin Fang’s Money Machine


【Abstract】

On October 14, 2015, I formally filed the Form 13909, the Tax-Exempt Organization Complaint (Referral) Form of the Internal Revenue Service (IRS) of the United States of America, against The Organization for Scientific & Academic Integrity in China (OSAIC). This Part and the next Part of the Open Letter to Nature are the supporting evidence for the Complaint, sent to the IRS along with the Form. In this Part, I’ll prove that OSAIC was formed by Shimin Fang in 2006 to collect money for himself. I’ll first show how the organization was originated, then, I’ll describe how the organization has been collecting money and channeling the money to Fang; and finally, I’ll introduce some of the board members of the organization, and its master Shimin Fang.

【Contents】

1. OSAIC was masterminded and organized by Shimin Fang and it works for the sole purposes of collecting money to support Fang.

(1) The lawsuit which led to the birth of OSAIC
(2) The shadowy figure behind and over OSAIC
(3) A baby sister was born before the older one
(4) A project planned long before

2. OSAIC raises money for Fang, exclusively.

(1) The domestic lawsuit campaign
(2) The “federal lawsuit” campaign
(3) The “donate the book and send the health” campaign
(4) The “help academic misconduct victim patients” campaign
(5) The hammer incident campaign
(6) The San Diego speeches
(7) The “donate a set of Fang Zhouzi’s books to your library” campaign

3. OSAIC gives money to Fang, exclusively.

Funding No. 1
Funding No. 2
Funding No. 3
Funding No. 4

4. OSAIC shelters money for Fang.

(1) Shu-kun Lin, a Swiss Profiteer
(2) William Yang, a Canadian bully on the New Threads

5. Who are those OSAIC board members?

(1) Shaoyi He
(2) Wei Wang
(3) Eddie Cheng
(4) John Fan
(5) Cyrus Wang

6. Who are behind these mysterious big donations?

7. Who is Shimin Fang?

(1) A science cop who hates to do scientific research
(2) A fraud fighter who has committed so many frauds
(3) A truth seeker who hides his money
(4) A poor man who lives in a mansion
(5) A righteous person who is being dunned

Notes


Filing the complaint
On October 14, 2015, I formally filed a complaint with the Internal Revenue Service (IRS) of the United States of America, against The Organization for Scientific & Academic Integrity in China (OSAIC). The above is the screenshot of the cover letter. Personal information is redacted.



Form 13909
Form 13909 is the official form used by IRS to file a complaint against a tax-exempt institution in the United States. The above is the screenshot of the form I filled. Personal information is redacted.



Acknowledgement
On November 10, 2015, IRS sent me a notice acknowledging their receipt of my complaint. The above is the screenshot of the Notice.



1. OSAIC was masterminded and organized by Shimin Fang and it works for the sole purposes of collecting money to support Fang.

According to the Form 1023 application by The Organization for Scientific & Academic Integrity in China (OSAIC), the organization was formed to serve the general public instead of a specific individual. The fact is, however, the organization was organized by an individual to serve himself. That individual is Shimin Fang (or Fang Shimin, better known in China as Fang Zhouzi).

(1) The lawsuit which led to the birth of OSAIC

Since 1999, Fang has been promoted by Chinese government and news media as a science cop and fraud fighter, and indeed, Fang has been attacking other people on daily basis, literally, in the name of fraud fighting or standup for science since then. Consequently, his activities have resulted in many libel litigations.

On July 30, 2006, the news that Fang had just lost his court battle against Dr. Chuanguo Xiao, a urological surgeon and professor previously at New York University but later at Huazhong University of Science and Technology in Wuhan, China, who sued Fang for defamation one year earlier, was posted on the New Threads[1], a website described by journal Nature as “a popular place to post rumours of scientific fraud”[2], and controlled completely and absolutely by Fang since its beginning in 1998. Minutes later, Fang announced:

“Some of my friends want to set up a foundation to support the fighting against academic fraud, and they are asking me to contact those people who want to do it together (to form the board, etc.). If you are interested, please contact me. The foundation will be independent of the New Threads, and I won’t be participating in its operation.”[3]


Taking the initiative for himself
Minutes after the news that he had just lost in a lawsuit, Fang announced on his New Threads that “someone” had asked him to find more comrades to form a foundation to support him. The above is the screenshot of Fang’s post[3], his name is red-boxed, and the time mark of the post is underlined.


On Sept. 14, 2006, Fang published on his New Threads an announcement signed by Mr. Feng Zhang, saying that he and ten other volunteers in the U. S. had been planning to establish the Organization for Scientific & Academic Integrity in China since the beginning of August[4].

Mr. Feng Zhang is one of Fang’s closest friends in the U. S., and they were classmates in the University of Science and Technology of China back in the 1980s. Mr. Zhang would become the first president of OSAIC, and the registration and mailing address of the organization was his home[5].

On Nov. 15, 2006, Fang published on his New Threads the organization’s announcement that they was formally established and open for business, and they were in the process of funding six lawsuits in China, all involved Fang[6]. Since then, the organization has made four more such announcements, all of them were for the funding of Fang’s legal battles in China, mainly against a specific individual, Dr. Chuanguo Xiao, who was targeted by Fang and his followers only because he reported, to the Science magazine in 2001, the earliest identified plagiarism case committed by Fang[7]. Since September 2005, when Dr. Xiao’s true identify was discovered by Fang’s followers, Fang has published nearly 9 hundred articles on his New Threads to attack and slander Dr. Xiao, his mentor, his family member, as well as the surgical procedure invented by and named after him[8].


Soleness
On its opening day, Nov. 14, 2006, OSAIC announced that they had decided to provide Fang with financial aids for all six libel lawsuits involving Fang. The above is the screenshot of the announcement[6]. The underlined sentence reads: “At present, this foundation has already decided to provide financial aids [to Fang] in the following lawsuits involving Mr. Fang Zhouzi (Shimin Fang).” Fang’s names in the six lawsuits are underlined. The same announcement was also published on the New Threads.


(2) The shadowy figure behind and over OSAIC

Although both Fang and the organization state that Fang does not participate in the operation of the organization, many Chinese people know it is a plain lie. So far, at least two people in the U. S. have stated publicly that Fang had actively recruited them to join the organization. Here is a message Fang sent to Mr. Lichun An, a California-based lawyer, on August 6, 2006:

“Mr. An: How are you! Very sorry that there was a mistake. Your name will be added [to the open letter against Wuhan court’s judgement] when it is reposted. Thanks for your support. By the way, several internet friends are planning to set up an academic fraud busting foundation, the organizers told me that they need an independent legal consult. Mr. An, since you are a lawyer, are you willing to take the volunteer job? Fang Zhouzi.”[9]

Here is what Dr. Junlin Liao, who used to be one of Fang’s top supporters and currently is a faculty member at the University of Iowa, revealed in 2008:

“The foundation contacted me through Fang Zhouzi, inviting me to be a board member, which demonstrates that Fang Zhouzi trusted me one month ago, otherwise, he won’t let a troublemaker enter into the foundation supporting his fraud busting.”[10]

In 2010, Fang admitted that it was he who gave the foundation’s English name[11]. The reason Fang named the foundation “organization” was because that Fang initially intended to use the organization as the base for his organized activities in both China and the United States[12].


Fang was actively recruiting a “legal consult” for his OSAIC
The above is the screenshot of a portion of Mr. An’s post, showing Fang’s letter to him[9].


(3) A baby sister was born before the older one

According to OSAIC’s statement on Form 1023, they initially intended to collect donations for Fang “Globally,” especially in China[13]. However, they soon found out that China’s government specifically prohibits foreign organizations from collecting donations from the general public. That’s exactly why Fang immediately asked his backers in China to set up a new “organization,” which was initially called “Science and Technology Fraud Busting Foundation,” but then changed to “Science and Technology Fraud Busting Fund,” because it is illegal in China to call itself “foundation” without governmental approval.

So, what’s the relationship between the American “Organization” and the Chinese “Foundation”? Here is the note, apparently added by Fang, on the first briefing issued by the latter on Nov. 3, 2006:

“This foundation currently accepts domestic donations only. Foreign donations should be sent to the U. S.-registered ‘The Organization for Scientific & Academic Integrity in China’ (in planning). According to China’s law, it is difficult for the foundations registered in foreign countries to accept domestic donations.”[14]

And in the briefing, there is also the following sentence:

“This planning committee will cooperate with The Organization for Scientific & Academic Integrity in China registered in the United States by the overseas and American Chinese, however, this committee has no subordinate relationship with that foundation.”[15]

In other words, they are two siblings working side by side and hand in hand to collect money for their actual founding father - Shimin Fang. Although planned later than her American sibling, the Chinese fund actually started collecting money earlier, because it didn’t go through any governmental regulations.

(4) A project planned long before

The initial website address of the Chinese “foundation” was “anti-fraud.cn,” which was registered by Mr. Jian Peng, Fang’s personal lawyer and chief financial operator, in the name of Beijing Qiangyi Commercial Investigation Firm, on June 1, 2006, almost two months before the Wuhan court made its preliminary judgement on the lawsuit and Fang’s subsequent announcement - “Some of my friends want to set up a foundation to support the fighting against academic fraud.” The fact alone demonstrates that Fang and his lawyer had planned to profit from Fang’s “fraud busting” business long before the loss of the court battle against Dr. Xiao.


The foresight
Two months before Fang lost his lawsuit in Wuhan, his personal lawyer Jian Peng registered a website address for Fang’s fundraising foundation. They must have initially intended to let OSAIC use the address; however, since OSAIC won’t be able to collect money from China, the address was used by Fang’s domestic fund. The above image is the screenshot of the registration information of anti-fraud.cn, as provided by Whois. Key information is underlined. Please note that the original entity which own the address was a commercial firm created by Mr. Jian Peng. The firm has disappeared completely since 2010 when I first brought the secret to light.


In 2012, the fraudulence of Fang’s anti-fraud funds became national news in China, and even Southern Weekend, one of the leading newspapers in China, began to investigate them. Here is an excerpt from their report:

“On Nov. 11 (of 2006), when Fang Zhouzi and Zhengyi Guo, one of the initiators of the ‘Fraud Busting Fund,’ were in the NetEase Chat Room as their guests, Fang revealed that he was implicated in seven fraud-busting related lawsuits, and the legal fees and punitive fines became a burden; among the lawsuits, the primary loss to Chuanguo Xiao in July caused ‘public outcry,’ which became the cause to establish the ‘Fraud Busting Fund.’

“Fang Zhouzi says that his friends first registered and established The Organization for Scientific & Academic Integrity in China in Florida of the United States, however, according to China’s law, foundations overseas are unable to collect donations domestically; it was under the leadership of Zuoxiu He, Zhengyi Guo, Zhong Yuan, and Nan Sima that the official website of the ‘fraud busting,’ www.dajiajijin.org, came into being.

“Careful examination of the website’s registration number, ‘Beijing ICP 06040342,’ one could find a logic loophole.

“On Nov. 4, 2006, an internet user searched the registration number in the Internet Content Provider (ICP) administration system maintained by Chinese Ministry of Industry and Information Technology, and he found that the corresponding website address of the number was anti-fraud.cn and www.anti-fraud.cn, and both addresses linked to the New Threads; the registration entity of the addresses was Beijing Qiangyi Commercial Investigation Firm.

“The service provided by Qiangyi was planning and preparing a fraud busting foundation; anti-fraud means fighting against fraud, or fraud busting. The addresses were registered in June of 2006. In September, when Fang Zhouzi’s lawyer Jian Peng bought www.dajiajijin.org, and used it as the official website of the ‘Preparing and Planning Committee of Science and Technology Fraud Busting Fund,’ the ICP registration number they used, fraudulently, was the one for anti-fraud.cn.

“The owner of anti-fraud.cn changed to Jian Peng later, and the ICP number originally belonged to anti-fraud.cn is now changed to www.dajiajijin.org. These threads of evidence suggest that long before Fang Zhouzi’s so called ‘cause’ appeared, the preparation and planning of the ‘Fraud Busting Fund’ had started behind the scene, and all these activities were closely associated with Jian Peng.”
[16]

On August 31, 2010, 2 days after Fang was hammered in Beijing, Jian Peng announced on www.dajiajijin.org that he had just formed a “Science and Technology Fraud Buster’s Personal Security Protection Fund,” and the money donated to the “Science and Technology Fraud Busting Fund” would go to the new fund by default, if no specific designation is provided[17]. In March 2012, Peng announced that the “Personal Security Protection Fund” had spent 590,239.87 Yuan in the past 19 months, without any specifics[18]. 19 more months later, Fang and his wife purchased a house in California with $670,000, paid in full, and Fang immediately surrendered his ownership of the property to his wife (more on this below). Till this day, Fang is still strenuously refusing to respond to “public outcry,” asking him to reveal the source of the money he used to purchase the house.

2. OSAIC raises money for Fang, exclusively.

Since its opening, OSAIC has planned and carried out many fundraising campaigns, and without a single exception, all these campaigns have the same goal: to collect money for Shimin Fang. In this section, I’ll describe all these campaigns.

(1) The Domestic Lawsuit Campaign

On OSAIC’s opening day, Nov. 14, 2006, the organization announced that they would provide Fang with funding for his six legal battles in China. In the announcement, it says:

“Mr. Fang Zhouzi and his attorney will submit applications to this foundation for all the relevant expenses incurred in the above lawsuits, and after reviewing and voting by the board, the actual expenses will be reimbursed in full. We are also solemnly appealing to the vast number of our friends who support the cause of scientific and academic integrity to contribute to this foundation energetically to support Mr. Fang Zhouzi, so that he could win these important lawsuits to promote the righteous academic atmosphere.”[19]

Eight days later, OSAIC posted the following message in the forum of the New Threads, and Fang published it on the homepage of the website the next day:

“Since OSAIC’s establishment, we have received donations worth more than $6,000 from the enthusiastic friends. [However,] the legal costs for Mr. Fang Zhouzi’s two lawsuits are already over 40,000 Yuan. And the recent absurd judgement makes us need more donations to support and fund Mr. Fang Zhouzi.”[20]

By saying “the recent absurd judgement makes us need more donations,” OSAIC meant that Fang was planning more retaliatory fights, including filing a criminal lawsuit against Judge Ying Lu, the presiding judge who had made the “absurd judgement.” Although Fang threatened repeatedly that he would file the lawsuit against the judge, he never dared to put his words into action. But the empty threat had already been listed as one of the six cases the organization initially decided to support.

By the end of 2006, the organization collected 109 donations, totaling $14,274.

(2) The “Federal Lawsuit” Campaign

Most Fang’s followers didn’t think that they have to contribute to OSAIC continuously, so in the entire January of 2007, OSAIC only received $150.

On Feb. 5, 2007, Fang manufactured a “threatening letter incident” to hype his newly published book, Science Makes You Healthy. According to Fang, the health supplement manufacturers in China sent a life threatening letter to his office in Beijing, because his book exposed many of their frauds. It was soon revealed that the so called threatening letter was nothing but a summons from a U. S. federal court in New York[21]. As a matter of fact, on the next day, Fang announced that the headquarters of the New Threads Chinese Cultural Society received the bill of complaint filed by Dr. Xiao on the previous day, suing him, the society, and Yi Rao, a professor at Northwestern University who had written a defamatory article against Xiao, which was published by Fang on his New Threads[22].

On Feb. 12, 2007, the organization posted an announcement on the New Threads, calling for donations, saying that they need more money because Fang and Yi Rao were sued by Dr. Xiao in the federal court of the United States. According to the announcement, which showed up in the forum of the New Threads only, “We the foundation will use the donations to hire the best possible lawyers for Fang Zhouzi to guarantee the victory of the lawsuit.”[23] A New Threads user complained that Yi Rao should not get the donation money because he made much more money than most donors, and the “Foundation” replied, in English:

“The announcement is about one law suite including Fang Zhouzi and Yi Rao. Please refer OSAIC's application process: [www.osaic.org] Please refer to OJ Simpson's case in terms of the importance of a lawyer.”[24]

On March 23, 2007, the “Foundation” issued another announcement on the New Threads, saying that Fang’s cost for hiring lawyers would be at least $30,000, but the foundation had collected only $17,000 by then, so they were calling for “enthusiastic donations to provide Fang Zhouzi with financial support” from “every righteous person who cares about development of science in China.”[25] Six days later, the “Foundation” issued yet another announcement, saying that they have received $6,781.66 in the past 6 days, and one Canadian Chinese even postponed his retirement so that he could donate more money to support Fang[26]. It turned out later that OSAIC’s total payout for this lawsuit, which has never been tried before a judge, was only $11,200 (see below).

(3) The “Donating the Book and sending the Health” Campaign

On March 28, 2008, Fang published the following on his New Threads:

“The Announcement by The Organization for Scientific & Academic Integrity in China on Donating the Book Science Makes You Healthy.”[27]

Needless to say, the book was written by Fang, and the campaign was designed to collect donations to purchase the unsold book from the publisher and give them to libraries in China.

As I have told the story previously[21], not only does the book Science Makes You Healthy contain multiple plagiarisms and countless scientific mistakes, it also is the most shamelessly promoted book in China: it was published in January of 2007, and the news of the publication was announced by Xinhua News Agency, the official news agency of the Chinese government; and by People’s Daily, the official newspaper of the Central Committee of the Chinese Communist Party. To promote the book, Fang’s backers, including that slanderous Yi Rao, all came out to tout the book. And Fang himself fabricated a “threatening letter incident,” as mentioned above. The thing is, even though being promoted like that, the book still sold poorly. More miserably, the publisher, who obviously overestimated Fang’s market potential, printed much more copies than they could sell - by the end of the year, about 5,000 unsold copies were in stock. That’s why the “organization” came to the rescue.

The campaign generated more than $6,000 income for the organization in the first two months of the campaign, including an anonymous donation of $4,000. On Jan. 16, 2009, the “organization” announced that the campaign had successfully completed, having sent out 4,340 copies to 418 recipients[28]. In other words, on average, they sent more than 10 copies of the book to each recipient. Why do they want to do that? There are two reasons: first, no one wanted the book, so once they located a willing recipient, they’d send as many copies as possible to him or her (the goal of the campaign was to give away 5,000 copies); second, by sending the book in balk, they would save the shipping cost, which was estimated by them at $1 per copy.


Killing three birds with one stone
By launching the “Donate-the-Book” campaign, OSAIC created a cause to collect money for Fang, a channel to dissipate Fang’s unsold books from the warehouse, and a way to increase Fang’s influence. The above is the flier of the campaign, posted by Fang on his New Threads.


(4) The “Helping the Academic Misconduct Victim Patients” Campaign

Because Fang had been refusing to comply with the Wuhan court’s judgement against him, made in July 2006, ordering him to pay a punitive fine of 30,000 Yuan and court fees, plus a public apology to Dr. Xiao, the Wuhan court enforced the judgement in August 2009 by taking away 40,754.60 Yuan from the bank account of Fang’s wife, since Fang didn’t, and probably still doesn’t, have his own bank account. Fang immediately launched a retaliatory campaign, and one part of the plan was to instigate the patients who had received Xiao’s Procedure to sue the hospital from which they received the operation. By doing so, Fang hoped that he could damage Xiao’s reputation, and stop the research on the procedure in the Western countries, including the United States.

On Nov. 12, 2009, the organization announced that they were initiating a fundraising campaign to raise 120,000 Yuan to help 40 academic misconduct victim patients to file lawsuits[29]. According to their website, the campaign received 35 donations, 25 of them were from anonymous donors. The total amount of money the campaign generated was $6,103.44[30].

(5) The Hammer Incident Campaign

On August 29, 2010, Fang was hammered in Beijing. Because of his secret tie with the Chinese government, the news was sensationalized by the national news media, including Xinhua News Agency and CCTV. On the next day of the incident, the organization issued an open letter to denounce the hitmen, and at the same time, they also announced that they would soon launch a new fundraising campaign, and called for donations from “everyone with a sense of justice to take action and use concrete actions to help Fang Zhouzi.”[31] Three days later, the organization “reiterates the call for donations.”[32] The campaign, even though having never been officially launched, generated more than $20,000 in donations by the end of the year[33]. However, Fang’s fund in China received a lot more money than her American sister.


The mysterious wounds
On Aug. 29, 2010, Fang claimed that he was chased by two thugs and hit by a hammer tossed at him which caused 3 wounds on his back. The incident immediately became a key case supervised by the Ministry of Public Security, and special task force was organized by the Beijing authority to solved the case. The above photo was first shown on www.jcrb.com, the official website of China’s Supreme People's Procuratorate, on the next day of the incident. People are still wondering how the three wounds could be generated by a single hit, and what kind of hammer could cause such wounds.


(6) The San Diego speeches

Fang’s reputation in China began to fall right after the hammer incident, because the secret of his fraudulent fight against Dr. Xiao became known to more and more people. In 2011, the plagiarism scandals committed by Fang and his wife were all over the internet, in the print media, and on televisions. The fatal blow came in 2012, when Fang launched his vicious and senseless attack on Mr. Han Han, a popular writer and racecar driver. It was for these reasons, the organization didn’t initiate any fundraising campaigns, and they only received $3,455.85 in 2011-2012, and $1,671.80 in the next fiscal year[34].

In October 2013, OSAIC sponsored two events which generated $11,369.50. The first one was held on October 6 in San Diego, California, and co-sponsored by three Chinese groups in Southern California area. Dr. Andrew X. Chen, the CEO of LATITUDE Pharmaceuticals Inc., issued a “Latitude Life Integrity Award” to Fang, plus a $10,000 donation to OSAIC[35]. The second event was held on October 12 on the campus of UC-San Diego. According to the announcement, Fang gave speeches and sold his books at both events. It was said that OSAIC collected $10 admission fee per person at the second event[126].


“The LaTTTude Life Integrity Award”
The picture was posted online by Fang on Oct.8, 2013.


(7) The “Donating a Set of Fang Zhouzi’s Books to Your Library” Campaign

On Oct. 21, 2014, Fang’s social medium accounts on China’s internet were completely wiped out. Although the incident was triggered by his ferocious attack on Mr. Xiaoping Zhou, a pro-government internet writer, Fang’s elimination from China’s internet has much deeper reasons, such as his secret connections with the corrupted officials such as Yongkang Zhou and Xilai Bo, and his countless fraudulent, illegal, and even criminal activities in the past 15 years[36]. Right after the incident, Fang and his family fled to the U. S., living in the mansion they purchased one year earlier.

On Jan. 30, 2015, the organization announced that they’d appropriate fund to purchase Fang’s books and donate them to the libraries in China[37]. According to the plan, they would first purchase 300 sets of Fang’s books, 20 books per set, and they estimated that each set costs $100. They plan to purchase 2,000 sets in three years, at the total cost of $200,000. By that time, the organization had collected less than a half of that amount in the previous 8 years, and their bank account had only about $44,000. Of course they called for donations.

There are many tricky things about the campaign. First of all, the announcement was initially posted on the New Threads by Fang on Jan. 30, and OSAIC posted the announcement on their website 4 days later. It indicates that Fang played an active and important role in the campaign. Indeed, one month later, Fang posted this message on Twitter: “If you support me, then you should buy my books.”[38]

The second tricky thing about the campaign is, OSAIC entrusted a bookstore called Threads Bookstore to undertake the task. Why it’s tricky? Because the Threads Bookstore is Fang’s store: it sells Fang’s books only and at the full price. Although the bookstore’s registered address is in Xiamen, Fujian province, under the name of Xing Xu, one of Fang’s business partners, the actual business operation of the bookstore is in Mr. Jian Peng’s office in Beijing[39].

Thirdly, Fang’s books have been sold at deep discount in other bookstores in China, up to 50%. For example, the whole set books could be bought for 350 Yuan (about $56) at dangdang.com, the largest online bookstore in China, but OSAIC would rather pay the price higher than the retail one.

On July 17, 2015, OSAIC announced that they had already reached their initial goal of donating 300 sets of Fang’s books, after having received nearly $30,000 in contributions, and they decided to continue the campaign[40]. On Sept. 9, 2015, Fang reposted a message by a head of one of his supporting groups, who is most likely one of OSAIC directors. The post says:

“In response to the second round of ‘Donating a Set of Fang Zhouzi’s Books to Your Library,’ a total of 64 friends contributed $4,555, which has been sent to OSAIC.”[41]

To the people who know Fang’s scheme well, the post is called a “lure,” used by Fang to lure other people to follow suit. Here is a comment by an internet user:

“This activity is sponsored by OSAIC, and undertaken by Threads Bookstore in Beijing. According to dangdang.com, the current price for the set is 350 Yuan, and they purchase the books at the price of 640 Yuan, it is an obvious transfer of benefits. Fang Zhouzi has claimed that he does not participate in the business of the Threads Bookstore.”[42]

Well, almost everyone who knows Fang well knows the fact that the entire scheme was designed to collect money from the public and transfer the money to Fang’s pocket.


The money game
By Sept. 21, 2015, OSAIC had collected $130,633 in donations. The money was mainly collected in 8 fundraising campaigns or events involving or surrounding Fang: the first one was the initial fundraising campaign; the second was the “Federal Lawsuit” campaign; the third was “Donating a Book” campaign; the fourth was “Helping the Academic Misconduct Victim Patients” campaign; the fifth was the “Hammer Incident” campaign; the sixth was for Fang’s lawsuit against a newspaper which published a comprehensive investigation report on Fang’s plagiarist history; the seventh was Fang’s San Diego speech campaign; the eighth was the “Donating a Set of Fang’s Books” campaign. The data were collected from OSAIC’s website, and the monthly totals are plotted using Excel software.


3. OSAIC gives money to Fang, exclusively.

Funding No. 1

On Nov. 28, 2006, merely two weeks after its opening, the organization announced that they were giving 38,108.20 Yuan ($4,842.58) to Fang and his lawyer Jian Peng for the two cases against Dr. Xiao in Wuhan, China. According to the announcement[19], the money was for the legal fees and travel expenses, not including any punitive fines.

The strange thing is, as of today, only one of the two cases, both filed by Dr. Xiao, has been closed, and the court fee for that case was merely 3,850 Yuan, which had already been paid by Dr. Xiao the plaintiff[43]; and for the next seven years, Fang would refuse to comply with the judgement, and he is still doing that[44], therefore, the only expenses they had incurred in the lawsuit at that time would be the lawyer’s fee and his travel expenses (Fang, as always, didn’t appeared in the court). However, the two cases were tried at the same location on the same day, so the travel expense was very limited; and just a few months earlier, Fang told a journalist that his lawyer works for him for free[45]. So, how could the lawsuits cost Fang so much money?


The deadbeat
On the website of China’s Supreme Court, Shimin Fang is listed as a “deadbeat” for refusing to comply with a Wuhan court order issued on April 22, 2007. According to the website, Fang currently owes the court 44,316 Yuan. (The screenshot was captured on Oct.13, 2015.)


On the other hand, even if Mr. Jian Peng did collect fees for his service for Fang, his fees won’t be more than 3,000 Yuan per case at that time, because that was the price he charged his other clients[46]. What more suspicious is, Mr. Peng is so incompetent that even Fang won’t trust him: Fang cooked every piece of “evidence” to defend himself[47], and he even wrote his own defense[48]. Furthermore, Fang told the judges explicitly that if there would be any discrepancies between what he wrote and what Peng would say in the court, they should disregard the latter[49].

So, why would the organization want to pay Mr. Peng at least 10 times more than his real value?

The fact is, China’s Law on Lawyers specifically prohibits lawyers from accepting payments directly from their clients:

“Article 23 When lawyers undertake business, their law firm shall centrally accept authorization, sign written authorization contracts with the clients and, in accordance with State regulations, collect fees from the parties and truthfully enter them in its accounts.”[50]

And in these two particular cases, Peng has never revealed the law firm he was working for; and Fang intentionally hid such information from the public by deleting such information from the legal documents he posted on his website. It is almost certain that the money Peng received from OSAIC hasn’t been entered in the account of his law firm, if he indeed had one; and it is extremely unlikely that Peng kept all the money for himself.

Funding No. 2

On June 7, 2007, the organization announced that they was giving $11,200 to Fang, Yi Rao, and the New Threads Chinese Cultural Society, because Dr. Xiao had sued them in the federal court in New York[51]. The fact is, partly because that Fang was hiding in Beijing to avoid the court summons, the case has never been heard before a judge, nearly 10 years after its filing, so, on what the money was spent?

According to Dr. Xiao, Rao paid him $10,000 to settle the case out of court[52]; and according to Fang, Rao told him that his settlement fee was paid by his insurance company[53]. Therefore, the only visible expense Fang might have paid by now in that case is an “ANSWER TO COMPLAINT,” which contains less than 900 words, dated April 15, 2007, and signed by a lawyer named Jenny Zhao, who started practicing law just one year earlier[54]. It is estimated that the maximum cost of the document won’t be more than $1,000. As mentioned above, OSAIC had said that they were going to hire the best lawyers available for Fang, so how come Fang got the cheapest lawyer? The only reasonable explanation to the puzzle is that the money went to Fang’s pocket directly, and Fang wanted to spend as less as possible, because that money had become his own money.

Funding No. 3

Immediately after the Wuhan court enforced their judgement against Fang in August 2009, Fang and his followers began their retaliation against Xiao. One of their strategies was to file lawsuits to tarnish the reputation of Xiao’s Procedure. In addition, Fang and Peng wanted to profit from the lawsuits, at least to recover the loss. Their initial plan was to file 40 individual lawsuits, and OSAIC would reimburse them 3,000 Yuan per case. To prevent the patients from filing a group lawsuit, and prevent them from handling their own cases independently, Fang even falsely claimed that Chinese law disallows group lawsuits, and an unsatisfied patient group would be illegal in China. Take a look at the conversation between Fang and “meiyou,” a New Threads user:

meiyou: “If there is solid evidence to prove the procedure’s efficacy is indeed low, then there might be law firms willing to represent a group lawsuit?”

Fang: “China doesn’t allow group lawsuit, the lawsuits must be filed one by one, it is very time-consuming and painstaking.”

meiyou: “Is it possible to let the patients form an association, then let the association file the lawsuit?”

Fang: “Won’t it be an illegal organization? It is definite that [we’ll] get the justice for the victims, as to how to do it, [we] will not discuss it publicly.”[55]


Trinity
Fang is not only a “fraud fighter,” he is also a lawyer and legislator - he has the power to make laws and interpret the laws at will. The above is the screenshot of the conversation between Fang and a New Threads user “meiyou,” translated above[55]. Fang’s messages are highlighted.


Is it true that Chinese law disallows group lawsuits? Here is what China’s Civil Procedure Law says:

“Article 53 When one party or both parties consist of two or more persons and the subject matter of the action is the same or under the same category, the people’s court may adjudicate them together upon the consent of all the parties. Such adjudication is called joint litigation.”[56]

And there is absolutely no law in China which prohibits victim patients from forming a self-help group. As a matter of fact, in 2010, Fang organized some of the patients to protest in front of a court house, and in the Ministry of Health. So, why did Fang want to falsify Chinese laws? The only plausible explanation is that he was attempting to use the “victims” as his leverage to both revenge on Xiao and launder more money from his American foundation or Chinese fund. It is really interesting to note that Fang even didn’t try to hide the fact that he was the instigator behind the scene.

On Nov. 6, 2009, Mr. Peng applied for 120,000 Yuan from OSAIC. Ten days later, the organization approved the application, and in addition to giving him $3,000 as the start fund, they launched a fundraising campaign to collect more money[57]. The funny thing is, as of today, six years later, none of the planned 40 lawsuits has been accepted by a Chinese court, let alone being heard. But the money is gone forever.

Funding No. 4

Right after the Wuhan court enforced the judgement in August 2009, Fang immediately began his ferocious and vicious attack on the court, and his wife filed a formal protest, because, according to her and her husband Fang, they had a “prenuptial agreement” which states that they don’t share their property anywhere in the world[58]. Of course, no one in this world knew the existence of the agreement before the couple said so, conveniently after the enforcement.

On Feb. 20, 2011, the organization announced that Mr. Jian Peng had applied for 40,754.60 Yuan for Fang’s punitive fine, and the organization approved the application[59]. Obviously, the money was used to make up the loss by Fang’s wife, who, according to the “prenuptial agreement,” doesn’t share her property with her husband; yet, she is eligible to share her husband’s fund.

What even more bizarre is, in April 2013, the Wuhan court returned the money to Fang’s wife, apparently under the pressure from the “central higher level,” as Fang put it[60]; and Fang paid the court 31,260 Yuan 4 months later, apparently from his Chinese fund, according to what he revealed later[61].

In other words, by losing lawsuits in China, Fang and his wife are making money in the United States, via OSAIC.



被编辑3次。最后被亦明编辑于01/04/2016 10:04AM。
附件:
打开 | 下载 - Part XLIX_The Organization for Scientific & Academic Integrity in China is Shimin Fang’s money machine.pdf (3.93 MB)
主题 发布者 已发表

Open Letter to Nature, Part XLIX: The Fangangsters (X): The Organization for Scientific & Academic Integrity in China is Shimin Fang’s Money Machine_1 (1943 查看) 附件

亦明 January 03, 2016 01:11PM

Open Letter to Nature, Part XLIX: The Fangangsters (X): The Organization for Scientific & Academic Integrity in China is Shimin Fang’s Money Machine_2 (624 查看)

亦明 January 03, 2016 01:15PM

The Fangangsters (XI): OSAIC Falsified Their Tax-exempt Application with IRS (1026 查看) 附件

亦明 January 06, 2016 09:37AM



对不起,只有注册用户才能发帖。

登陆

2250s.com does not represent or guarantee the truthfulness, accuracy, or reliability of any of communications posted by users.

This forum powered by Phorum.