This case was last updated from PACER on 09/28/2021 at 05:28:36 (UTC).

Securities and Exchange Commission v. Xia et al

Case Summary

On September 27, 2021, Securities and Exchange Commission (the “Commission” or “Plaintiff”), represented by Brenda Wai Ming Chang, David Paul Stoelting, Judith Ann Weinstock, Kevin P. McGrath, Lara Shalov Mehraban and Richard R. Best, attorneys at SEC’s New York regional office, filed a civil enforcement action against Richard Xia, a/k/a Yi Xia (“Xia”), Fleet New York Metropolitan Regional Center LLC, f/k/a Federal New York Metropolitan Regional Center, LLC (“Fleet”), and Relief Defendant Julia Yue, a/k/a JiQing Yue (“Yue”) (collectively, “Defendants”), seeking permanent injunctive relief including an asset freeze, disgorgement of all ill-gotten gains, prejudgment interest and other relief for misuse of investor funds. This case was filed in the United States District Court in the Eastern District of New York with Judges Kiyo A. Matsumoto and Cheryl L. Pollak presiding.

 

In the complaint, Plaintiff alleged that, “From 2010 through late 2017, Defendants fraudulently raised more than $229 million by offering and selling limited partnership interests to more than 450 investors. In connection with the offerings, Xia acted by and through Fleet, the General Partner of the limited partnerships that issued the securities.”

 

Plaintiff also alleged that, “Relying on the Defendants’ representations, investors contributed $56 million to the Eastern Mirage Project. Although the offering materials represented that the project would be completed in 2013, today it is an unfinished and empty glass tower. Between 2014 and 2017, investors contributed $173 million to the Eastern Emerald Project. Today, it remains a largely vacant dirt hole surrounded by a concrete wall.”

 

Further, Plaintiff alleged that, “A total of at least $9.7 million in ill-gotten gains was routed to personal bank accounts for Julia Yue for no legitimate business purpose. This includes $4.1 million she received between January 2012 and January 2019 and an additional $5.6 million she received in April and May 2021.”

 

Plaintiff then alleged that “About $77 million in investor funds remains in Xia-controlled bank accounts, which is insufficient to repay investors. Of the investor funds remaining, approximately $18 million were in CDs that matured on September 26, 2021 and are now readily available for Defendants’ potential misuse. The Defendants’ actions have jeopardized the investors’ prospects for any return of their capital contributions. And Xia continues to misuse investor funds.”

 

There are three claims for relief laid down by Plaintiff. The first claim is for the alleged violation of Securities Act section 17(a), the second claim is for alleged violation of Exchange Act Section 10(b) and Rule 10b-5, and the third claim is for alleged unjust enrichment.

 

In the prayer for relief, Plaintiff has requested the court to pass an order for an award of permanent injunctive relief along with an order for disgorgement of all ill gotten gains with prejudgment interest, civil monetary penalties pursuant Exchange Act Sections 21(d)(5) and 21(d)(7) [15 U.S.C. §§ 78u(d)(5) and 78u(d)(7)], and such further relief as the court may deem just and proper. 

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-05350

  • Filing Date:

    09/27/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Kiyo A. Matsumoto

Referral Judge

Cheryl L. Pollak

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Richard Xia

Fleet New York Metropolitan Regional Center LLC

Julia Yue

Yi Xia

Federal New York Metropolitan Regional Center, LLC

Jiqing Yue

Attorney/Law Firm Details

Plaintiff Attorneys

Brenda Wai Ming Chang

Attorney at US Securities & Exchange Commission

200 Vesey Street, Ste. 400

New York, NY 10281-1022

David Paul Stoelting

Attorney at United States Securities and Exchange Commission

200 Vesey Street, Ste. 400

New York, NY 10281-1022

Judith Ann Weinstock

Attorney at U.S. Securities & Exchange Commission

200 Vesey Street, Suite 400

New York, NY 10281

Kevin P McGrath

Attorney at Securities and Exchange Comm

200 Vesey Street, Suite 400

New York, NY 10281

Kim Han

Attorney at U.S. Securities & Exchange Commission

200 Vesey Street

New York, NY 10281-1022

Lara Shalov Mehraban

Attorney at U.S. Securities and Exchange Commission

200 Vesey Street, Ste. 400

New York, NY 10281-1022

Richard R. Best

Attorney at U.A. Securities and Exchange Commission

200 Vesey Street, Ste 400

New York, NY 10281

 

Court Documents

#10

(#10) In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (Bowens, Priscilla) (Entered: 09/27/2021)

#9

(#9) Summons Issued as to All Defendants. (Bowens, Priscilla) (Entered: 09/27/2021)

#8

RESTRICTED

7 #50

Ex. 50

7 #49

Ex. 49

7 #36

Ex. 36

7 #33

Ex. 33

7 #27

Ex. 27

7 #24

Ex. 24

7 #18

Ex. 18

7 #16

Ex. 16

7 #12

Ex. 12

7 #11

Ex. 11

7 #10

Ex. 10

7 #8

Ex. 8

7 #2

Ex. 2

7 #1

Ex. 1

7 #7

Main Document

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Docket Entries

  • 09/27/2021
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  • Docket(#10) In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (Bowens, Priscilla) (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#9) Summons Issued as to All Defendants. (Bowens, Priscilla) (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#8) Unsigned Order to Show Cause by Securities and Exchange Commission (Bowens, Priscilla) (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#7) DECLARATION Raymond Dookhie by Securities and Exchange Commission (Bowens, Priscilla) (Additional attachment(s) added on 9/27/2021: #1 Ex. 1, #2 Ex. 2, #3 Ex. 3, #4 Ex. 4, #5 Ex. 5, #6 Ex. 6, #7 Ex. 7, #8 Ex. 8, #9 Ex.9, #10 Ex. 10, #11 Ex. 11, #12 Ex. 12, #13 Ex. 13, #14 Ex. 14, #15 Ex. 15, #16 Ex. 16, #17 Ex. 17, #18 Ex. 18, #19 Ex. 19, #20 Ex. 20, #21 Ex. 21, #22 Ex. 22, #23 Ex. 23, #24 Ex. 24, #25 Ex. 25, #26 Ex. 26, #27 Ex. 27, #28 Ex. 28, #29 Ex. 29, #30 Ex. 30, #31 Ex. 31, #32 Ex. 32, #33 Ex. 33, #34 Ex. 34, #35 Ex. 35, #36 Ex. 36, #37 Ex. 37, #38 Ex. 38, #39 Ex. 39, #40 Ex. 40, #41 Ex. 41, #42 Ex. 42, #43 Ex. 43, #44 Ex. 44, #45 Ex. 45, #46 Ex. 46, #47 Ex. 47, #48 Ex. 48, #49 Ex. 49, #50 Ex. 50, #51 Ex. 51) (Bowens, Priscilla). (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#6) DECLARATION Kim Han by Securities and Exchange Commission (Bowens, Priscilla) (Additional attachment(s) added on 9/27/2021: #1 Ex. 1, #2 Ex. 2, #3 Ex. 3, #4 Ex. 4, #5 Ex. 5, #6 Ex. 6, #7 Ex. 7, #8 Ex. 8, #9 Ex.9, #10 Ex. 10, #11 Ex. 11, #12 Ex. 12, #13 Ex. 13, #14 Ex. 14, #15 Ex. 15, #16 Ex. 16, #17 Ex. 17, #18 Ex. 18, #19 Ex. 19, #20 Ex. 20, #21 Ex. 21, #22 Ex. 22, #23 Ex. 23, #24 Ex. 24, #25 Ex. 25, #26 Ex. 26, #27 Ex. 27, #28 Ex. 28, #29 Ex. 29, #30 Ex. 30, #31 Ex. 31, #32 Ex. 32, #33 Ex. 33, #34 Ex. 34, #35 Ex. 35, #36 Ex. 36, #37 Ex. 37, #38 Ex. 38, #39 Ex. 39, #40 Ex. 40, #41 Ex. 41, #42 Ex. 42, #43 Ex. 43, #44 Ex. 44, #45 Ex. 45, #46 Ex. 46, #47 Ex. 47, #48 Ex. 48, #49 Ex. 49, #50 Ex. 50, #51 Ex. 51, #52 Ex. 52, #53 Ex. 53, #54 Ex. 54, #55 Ex. 55, #56 Ex. 56, #57 Ex. 57, #58 Ex. 58, #59 Ex. 59, #60 Ex. 60, #61 Ex. 61, #62 Ex. 62, #63 Ex. 63, #64 Ex. 64, #65 Ex. 65, #66 Ex. 66, #67 Ex. 67, #68 Ex. 68, #69 Ex. 69, #70 Ex. 70, #71 Ex. 71, #72 Ex. 72, #73 Ex. 73, #74 Ex. 74, #75 Ex. 75, #76 Ex. 76, #77 Ex. 77, #78 Ex. 78, #79 Ex. 79, #80 Ex. 80, #81 Ex. 81, #82 Ex. 82, #83 Ex. 83, #84 Ex. 84, #85 Ex. 85, #86 Ex. 86, #87 Ex. 87, #88 Ex. 88, #89 Ex. 89) (Bowens, Priscilla). (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#5) DECLARATION Sunil K. Aggarwal by Securities and Exchange Commission (Bowens, Priscilla) (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#4) DECLARATION Annie Seelaus by Securities and Exchange Commission (Bowens, Priscilla) (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#3) DECLARATION Robert Thompson by Securities and Exchange Commission (Bowens, Priscilla) (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#2) MOTION for Temporary Restraining Order by Securities and Exchange Commission. (Attachments: #1 Proposed Order Appointing Monitor, #2 Memorandum in Support) (Bowens, Priscilla) (Additional attachment(s) added on 9/27/2021: #3 Declaration David Stoelting) (Bowens, Priscilla). (Entered: 09/27/2021)

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  • 09/27/2021
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  • Docket(#1) COMPLAINT against Fleet New York Metropolitan Regional Center LLC, Richard Xia, Julia Yue Was the Disclosure Statement on Civil Cover Sheet completed -No,, filed by Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet) (Bowens, Priscilla) (Entered: 09/27/2021)

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