Time to pay up or else...
Last week, founder and of Chinese tech firm LeEco and Faraday Future, Jia Yueting, was ordered to return home by the Chinese Securities Regulatory Commission (CSRS) in order to sort out his debts and "fulfill his obligation" to protect investors' rights. His reply: defiance. Reuters has provided an updated report stating Jia is outright refusing to leave the US so that he continue fundraising. Meeting Chinese government debt collectors face-to-face doesn't sound like fun at all.
"I am deeply sorry and blame myself for the negative impact of LeEco's debt crisis," Jia said in the statement posted on his official WeChat account. "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 FF91," he said, referring to the Tesla Model S-fighter that LeEco is developing with Faraday Future. LeEco is far from being a healthy company these days, and Chinese courts have officially put Jia on a blacklist of sorts. It's a far car from the status he previously had as one of China's most prominent tech industrialists.
Jia's financial issues stem from expanding too rapidly into too many projects. At one point LeEco owed creditors about $1.54 billion. One of those projects was the FF91 and it doesn't look like that EV will ever make production. As for Jia, well, he also has some personal financial irregularities to sort out. Last month it was reported Jia had taken $75 million from Faraday Future and deposited it into a family trust fund.