There goes that dream.
The continual burn of Jia Yueting, founder of Chinese tech giant LeEco and head of Faraday Future, due to cloudy cash handling practices only seems to be proceeding forward. This time around, Yueting has been summoned back to China by the Chinese Securities Regulatory Commission (CSRC) to sort out his debt and “fulfill his obligation” to protect investors’ rights, according to Reuters. And the worst part? This isn’t the first time the CSRC has asked Yueting to return to China.
Yueting was summoned back in September but gave no response to the request, prompting China to give him until December 31st to return to China or else. “Firms you control owe huge amounts to listed companies, which has not yet been returned,” the CSRC said to Yueting. “This behavior seriously harms the legal rights of listed firms and the personal interests of a wide range of investors.” Unfortunately for Yueting, the move only exacerbates the notion that he’s fallen from the ranks of one of China’s most important entrepreneurs, responsible for multiple tech businesses including a smartphone company and the Tesla-fighting LeSEE and Faraday Future, to a debtor who is unable to get finances in order.
Yueting’s problems have gotten so bad that Chinese courts put him on blacklist of debt defaulters in an effort to get him to start paying down his debts. Reuters contacted a spokeswoman for LeEco’s holding group Leshi and heard that Yueting’s behavior shouldn’t have a major effect on its operations since he has stepped down as CEO of Leshi. However, he is still the head of LeEco and Faraday Future, which are still in trouble. Earlier this month, a story emerged that claimed Yueting took $75 million from Faraday Future and stuffed it into a trust fund for his family. His accuser went as far as to say that Yueting’s company is a Ponzi scheme. All of this goes to say that it doesn’t seem likely we’ll see the fruits of Yueting’s labor anytime soon.