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    Monday, July 16, 2018-7:04:33P.M.

     

     

     

     

     

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Investor sues 2 over ownership of hotel shares

AN investor is asking the Superior Court to issue an order declaring him the sole shareholder of BO SEA Corp. which he said owns Gold Beach Hotel in Garapan.

Represented by attorney Michael Dotts, Tingjian Tang sued Shuai Zhang and Yibo Zu, and asked the court to award the plaintiff costs and fees, attorney’s fees, and other relief the court deems proper.

 According to the complaint, Hu set up a scheme to defraud Chinese investors. Hu bought a hotel on Saipan whose shares he then sold to Chinese investors who were promised “green cards” in return for  their investments, the complaint stated.

Dotts said Chinese investors provided Hu with about $3.5 million. Hu then acquired Gold Beach Hotel with other people’s money but placed it in his own name, the lawyer said.

Dotts said Hu never actually invested his own money in BO SEA, and in fact never paid for or acquired any shares in the company.

 Hu used the money he obtained from the investors to fund his own lavish lifestyle, Dotts said, adding that the defendant’s fraud came to light after a group of investors filed a lawsuit against him.

 These investors sought damages plus equitable relief for the breach of fiduciary duties owed to BO SEA, and the conversion of funds and the forfeiture of shares held in BO SEA by Hu, Dotts said.

 He added that the case was settled, and as part of the settlement Hu assigned a lease to the Gold Beach Hotel that was in his name to BO SEA, and transferred all ownership he had in BO SEA to the company.

 The investors then released Hu from liability for the wrongs he had done, Dotts said.

 Subsequent to the settlement of the investor case, the investors who had sued Hu and who became the sole shareholders of BO SEA by virtue of the settlement, sold all their shares to Tang.

 Subsequent to Tang’s acquisition of all the BO Sea shares, Shuai Zhang sued Hu for breach of contract not related to the Gold Beach Hotel, Dotts said.

 In that lawsuit, Zhang obtained a default judgment against Hu, Dotts added.

 On information and belief, he said, in the post-judgment proceedings to execute on the default judgment, Hu claimed to still own shares in BO SEA.

 Relying on Hu’s false claim of ownership of shares in BO SEA, Zhang obtained an assignment of shares of BO SEA, placing a cloud on Tang’s ownership of the company.