Company, trader sue Chinese national

A limited liability company owned by a British Virgin Islands corporation and a businessman from Singapore are suing a Chinese national who allegedly failed to pay $1.5 million, the remaining price for properties on Mt. Tapochau and four vehicles.

Angel Villa LLC and Sergey Tkachev, through counsel Daniel T. Guidotti, are suing Zhao Jian Zhong for breach of contract before the U.S. District Court for the NMI.

Angel Villa and Tkachev asked the court to declare Zhao in breach of their purchase agreement and to terminate the agreement.

The plaintiffs requested the court to award them with money sufficient to compensate their out-of-pocket expenses, plus attorney’s fees and court costs.

The plaintiffs also asked the court to order Zhou to release the $100,000 initial deposit from Security Title.

According to Guidotti, Angel Villa has its principal place of business in the CNMI. Angel Villa’s sole member is Treasure Hut Holdings, a British Virgin Islands corporation, he said.

The lawyer said Tkachev resided in the Republic of Singapore and is a citizen of Antiqua and Barbuda.

Guidotti said Angel Villa is the leasehold owner of two tracts of land (properties), both situated on Mt. Tapochau.

He said that in 2016, Zhao approached Angel Villa and Tkachev about buying the properties and four vehicles owned by Tkachev.

Before the parties entered into a written agreement, Zhao, Angel Villa, and Tkachev directed Security Title Inc. to open an escrow account regarding Zhao’s proposed purchase of the properties.

Security Title opened an escrow account, where Zhao then deposited $100,000 via cashier’s check as initial deposit on July 14, 2016.

Guidotti said that effective Oct. 3, 2016, Zhao entered into an agreement to purchase the properties from Angel Villa together with four vehicles owned by Tkachev.

In exchange for the properties and the vehicles, Zhao allegedly promised to pay Angel Villa and Tkachev $1,742,500.

As part of the deal, Zhao allegedly promised to make a non-refundable initial deposit of $100,000 to Security Title.

Guidotti said Zhao promised to deliver $1,642,500 to Security Title on or before Nov. 2, 2016.

As Zhao failed to deliver the $1.6 million, the plaintiffs sent him a notice of default on Nov. 14, 2016.

Guidotti said that effective Nov. 30, 2016, Zhao and the plaintiffs modified the agreement, with the plaintiffs promising to extend the closing date of July 3, 2017, convey title to three of Tkachev’s vehicles to Zhao, and reduce the purchase price by $100,000. In return, Zhao allegedly promised to pay $100,000 to Angel Villa and Tkachev.

Guidotti said that because Zhao paid $100,000 to plaintiffs, the closing date was extended to Jan. 3, 2017.

The lawyer said as of May 26, 2017, Zhao has not delivered the remainder of the purchase price, $1,542,500, to Security Title.

Guidotti said Zhao’s unjustified failure to pay $1.5 million to Security Title to close under the agreement on or before Jan. 3, 2017, has prevented Angel Villa from selling the properties to third parties.

In addition, plaintiffs asked Zhao to release the $100,000 initial deposit from Security Title, but Zhao allegedly refused.