His name is Carson C. Block, and he may just cost hedge fund legend John Paulson $500 million.

Block is the founder and research director of Muddy Waters Research, a firm that says it "sees through appearances to a Chinese company’s true worth."

Unfortunately for John Paulson, Block saw through to what he thinks is Sino-Forest's true worth, and in releasing his damning report on the Chinese forest operator, sent the stock-price plummeting.

Paulson and Co. is Sino-Forest's largest shareholder, with 34.7 million shares. At least he was at the time of his 13-F filed on April 29. It's conceivable he's sold since then and before this incident. We also don't know how he's hedged, so it's possible his losses aren't quite so severe..

The stock opened at $18 yesterday, and nosedived to under $2.50 after the report -- which compared Sino-Forest to the Madoff Ponzi Scheme -- made the rounds.

So who is Carson Block?

Muddy Waters describes the 34-year-old as "an entrepreneur who’s practiced law and pioneered an industry in China."

He founded a company called Love Box Self Storage, "a near luxury service for high income Chinese consumers", according to CNBC, and helped author "Doing Business In China For Dummies."

Prior to his entrepreneur days, he was an attorney for Jones Day in Shanghai, where he acted primarily for foreign clients involved in direct investment and M&A in China.

He speaks Mandarin, and after practicing as a lawyer for one year (he said originally he thought he'd never practice after law school), he switched into research for hedge funds and for his father, who's an investor, Barrons reported earlier this year.

He's also an adjunct professor of the Chicago-Kent College of Law, where he graduated with a JD, and teaches an overseas program in Shanghai for the school.

He earned a B.S in Business Administration from the Marshall School of Business at USC.

He founded Muddy Waters in June of 2010 and told Barrons that what he does, in one sentence is: "exposing what I believe are substantial frauds before they suck up more money from investors."

Block talking shop on CNBC. CNBC Screen Grab And Sino-Forest is not the first public company that's come crashing down after one of his reports.

According to CNBC:

After a Muddy Waters' report, Orient Paper fell 50%.

After a Muddy Waters' report, RINO International fell 60%.

China MediaExpress fell 28%, then had to be halted, then the CFO of the company resigned, and then the company was de-listed altogether.

Duoyuan Global Water fell 40%, and the CFO resigned.

Meanwhile, he told Barrons he was looking to expand his business into covering other emerging markets. For those who want to avoid the Muddy Waters' short curse, he specifically named Latin America.

We reached out to Muddy Waters to speak with Block, and we're yet to hear back.

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