×

LeEco Boss Jia Yueting Defies Order to Return to China

UPDATED: Jia Yueting, the colorful founder of the struggling LeEco Group, says he cannot yet return to China, putting him in defiance of an order from one of the country’s financial regulators.

In a Dec. 25 instruction, the China Securities Regulatory Commission said it wanted Jia back in China by Dec. 31 to take action over the mounting debts at the sprawling tech and video streaming group. Having missed that deadline, Jia on Tuesday used his WeChat social media account to publish a letter he sent to the CSRC on Dec. 31, in which Jia says he cannot return to China while he is making good progress on the refinancing of electric cars company Faraday Future in the U.S.

“The fundraising for Faraday Future in the United States is making significant progress and there are many tasks I need to push forward in order to ensure the production and timely delivery of the [latest model] FF91,” Jia said. In previous blogs, Jia had suggested that if he returned to China he feared not being allowed to return to the U.S. where Faraday’s future is likely to be decided.

In the new posting, Jia said he had asked his wife and his older brother, Jia Yuemin, also a board director of listed unit LeShi Internet Technology, to meet with the CSRC. Jia’s wife, Gan Wei, appeared to land in Beijing on New Year’s Eve, posting messages on her Weibo social media account from the airport, and saying that she was back with a mission. That left it unclear whether Jia himself had returned or defied the CSRC order.

Lawyers have pointed out that Jia’s defiance of the CSRC’s instruction may have civil, rather than criminal implications. But Jia’s problems at home are mounting.

In mid-December, he was placed on China’s list of debt defaulters and on a national blacklist. By the end of the month a court announced that it had seized substantially all of his assets in China. In his message, Jia points to a missed debt payment in July last year that triggered an asset freeze and multiple other calls for debt repayment. The mounting cash problems mean the shutdown of nearly all the group’s non-listed companies and the layoff of 10,000 staff.

Jia also pointed to supply-chain shifts in the phone handset market in 2016 – LeEco group company Coolpad manufactures phones for other brands as well as the company’s own LeEco phones – that had a ripple effect across the consortium.

Jia recently announced a $1 billion cash lifeline for Faraday Future. But one of the purported investors, Thailand’s leading energy group, PTT, denied its involvement.

More Biz

  • Hayley Kiyoko Signs Global Publishing Deal

    Hayley Kiyoko Signs Global Publishing Deal With Kobalt

    Singer-songwriter-actor Hayley Kiyoko, seen most recently in a cameo in Taylor Swift’s “You Need to Calm Down” video, has signed an exclusive worldwide publishing agreement with Kobalt, the company announced today. The partnership includes publishing administration, creative services and synch for all of her catalogue and future works. Jamie Kinelski, VP, Creative, Kobalt said, “Hayley [...]

  • billy porter gay pride todd snyder

    How Hollywood Is Celebrating Pride Month

    Pride Month officially wraps up this weekend with the WorldPride Parade in New York. It takes on special significance this year, as attendees mark the 50th anniversary of the Stonewall uprising. A number of artists and brands are also getting involved, launching “Pride-themed” collaborations and merchandise in an effort to boost their own visibility within [...]

  • Shawn Strickland, Tony DiSanto - Allyance

    Tony DiSanto's Allyance Media Taps Verizon Veteran Shawn Strickland as President (EXCLUSIVE)

    Shawn Strickland, a veteran of Verizon and Complex Media, has joined Tony DiSanto’s Allyance Media Group as president. In the role, Strickland is heading up business operations and spearheading partnerships for the multiformat media and production company. DiSanto and financier Matthew Bruderman formed Allyance Media Group last year. The New York-based company encompasses DIGA Studios, [...]

  • Andy Signore Screen Junkies

    'Honest Trailers' Creator Andy Signore Settles Defy Media Suit

    Andy Signore, the creator of Screen Junkies’ “Honest Trailers,” has settled a lawsuit against Defy Media challenging his firing for alleged sexual misconduct. Signore was one of the first figures to lose his job in the aftermath of the Harvey Weinstein harassment revelations in October 2017. Defy Media, which then owned Screen Junkies, terminated him [...]

  • Singer-rapper Psy performs during the 70th

    YG Agency Boss Quits as K-Pop Scandals Expand

    Yang Hyun-suk last week resigned from his remaining positions at YG Entertainment. The talent agency he co-founded is deeply mired in a series of inter-linked scandals that stretch from drugs to prostitution. Problems started with the band Bigbang and its star Seungri, but now also encompass other YG artists. Hwang Bo-kyung was appointed as the [...]

  • NEW YORK, NY – JUNE, 24:

    LGBTQ Stars Honored at Variety’s Power of Pride Celebration

    New York City felt the full Power of Pride on Monday, as Variety celebrated its inaugural issue devoted to the annual recognition of LGBTQ people worldwide. At an intimate gathering at Mr. Purple, the rooftop bar at Hotel Indigo Lower East Side in Manhattan, Variety’s cover stars and luminaries gathered for cocktails and the unveiling [...]

  • Motown Seeks to Block 'O-Town' Trademark

    Motown Seeks to Block 'O-Town' Trademark

    UPDATED: The boy band O-Town briefly rose to fame in 2000, with a star turn on MTV’s reality series “Making the Band.” But the reformed group has just one obstacle to its efforts to trademark its name: Motown Recordings. The label’s parent company, Universal Music Group, is trying to block the band from registering “O-Town” [...]

More From Our Brands

Access exclusive content