It is a bug caused by using an invalid Encoding. It will be fixed in next version. In the meantime please use the following method as a workaround for incorrectly encoded names:
public static string FixEncoding(string text)
Encoding cp437 = Encoding.GetEncoding(437);
Thank you for pointing to this and we are sorry for any inconveniences.
The fix is part of Release 2012 R1. Default charset changed to IBM437 (used to be Encoding.Default).