Liu

Securities & Exchange Commission v. Liu

Good Law
262 F. Supp. 3d 957
United States District Court, Central District of CaliforniaApril 20, 2017Case No.: SACV 16-00974-CJC(AGRx)California10,639 words

Opinion

Lead Opinion

Carney, J.

ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT AGAINST DEFENDANTS LIU AND WANG

I. INTRODUCTION

Defendant Charles C. Liu formed and controlled three corporate entities, Beverly Proton Center, LLC (“Beverly Proton”), Pacific Proton EB 5 Fund LLC (“PPEB5 Fund”), and Pacific Proton Therapy Regional Center (“Pacific Proton”) (together with PPEB5 Fund and • Beverly Proton, “Corporate Defendants”), purportedly to build and operate a proton therapy cancer treatment center in southern California. Liu financed the cancer center with neaiiy $27 million dollars of international investment through the EB-5 Immigrant Investor Program.

Instead of pursuing proton therapy, Liu tunneled over $20 million of investor money to himself, his wife Defendant Xin Wang, and marketing companies associated with them. Millions of dollars were transferred shortly after Plaintiff Securities and Exchange Commission (“SEC”) subpoenaed Liu as part of the SEC’s initial investigation in February 2016.

*961 The SEC now seeks summary judgment against Liu and Wang. For the' following reasons, the Court GRANTS the SEC’s motion. A judgment and permanent injunction shall issue forthwith.

II. FACTUAL…

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