Sino-Forest, which reported a $22.1 million first-quarter loss, warned that fraud allegations leveled against the company by research and investment firm Muddy Waters would continue to affect its business short-term, as the company devotes more resources to fighting the claims. Shares of the Toronto-listed company fell more than 75 percent since Muddy Waters released its report on June 2. Sino-Forest continues to refute the challenges to its accounting and business practices, and CEO Allen Chan says he personally stands by the company's numbers. "There are no inaccuracies in our corporate reports, filings or audited financial statements." Chan says Muddy Waters' report "demonstrate a lack of understanding of our business, a lack of review of our financial statement and simply put, sloppy research." Sino-Forest has tasked three of its independent directors to examine the allegations. The company says it will take two to three months for the committee to provide a complete report on the findings.