Investors allegedly defrauded of millions of dollars


An investor who acquired the Gold Beach Hotel on Beach Road in 2015 is now being accused of defrauding Chinese investors of millions of dollars on promises that they would get shares in the hotel and obtain green cards as a return on their investment.

Chinese citizen and Saipan resident Tingjian Tang allege that Yibo Hu acquired Gold Beach Hotel using other Chinese investors’ money but placed the hotel’s ownership in his own name.

Tang, through counsel Michael W. Dotts, alleged that Chinese investors provided $3.5 million to Hu and that Bo Sea Corp. was set up as a vehicle for Hu’s fraud.

Tang is suing Hu and another investor, Shuai Zhang, before the Superior Court to declare him (Tang) as the sole shareholder of Bo Sea Corp.

According to Dotts in the complaint, the con was to buy into a hotel on Saipan, represent to investors that they were buying shares in the hotel, and promise them green cards as part of the return on their investment.

Dotts said Hu used money he obtained from these investors to fund his own lavish lifestyle, that Hu never actually invested his own money in Bo Sea, and in fact never paid for or acquired any shares in the company.

Dotts said Hu’s fraud came to light when a group of investors sued Hu and another defendant in June 2016.

The lawyer said these investors sought damages for the breach of fiduciary duties owed to Bo Sea and the conversion of funds and the forfeiture of the shares held in Bo Sea by Hu.

He said the investors’ 2016 lawsuit was later settled.

As part of the settlement, Dotts said, Hu assigned a lease to the Gold Beach Hotel that was in his name only to Bo Sea, and transferred all ownership he had in Bo Sea to Bo Sea.

Dotts said the investors in return released Hu from liability.

Subsequent to the settlement of the investors’ suit, the investors who had sued and who had become the sole shareholders of Bo Sea by virtue of the settlement sold all their shares in Bo Sea to Tang.

Subsequent to Tang acquiring all of the shares of Bo Sea, Zhang sued Hu for breach of contract in 2017.

Dotts said the scam that Hu allegedly perpetrated on Zhang was related to marine sports business and was not directly related to the Gold Beach Hotel.

Zhang obtained a default judgment against Hu in Zhang’s lawsuit.

Dotts said it is alleged that in post-judgment proceedings to execute on the default judgment, Hu claimed to still own shares in Bo Sea.

Dotts said that in reliance on Hu’s false claim of ownership of shares in Bo Sea, Zhang obtained an assignment of the shares in Bo Sea that Hu claimed to own.

Dotts said Zhang has now claimed that Tang does not own all of the shares of Bo Sea, placing a cloud on Tang’s ownership of that company.

The lawyer said it is alleged that Hu never paid for the shares of Bo Sea that he claimed and therefore had no shareholder interest in that company.

Dotts said when Tang acquired the shares from the true shareholders, Tang acquired all of the shares of Bo Sea.

Dotts said to the extent Hu owed any shares in Bo Sea, he legally surrendered his shares and was divested of all interest in the company when he entered into the settlement of the investors’ case.

Dotts said when Tang acquired the shares of Bo Sea after the settlement of the investors’ case, Tang acquired all of the shares of the company.

In June 2015, Hu, through a translator, told Saipan Tribune that he is planning to build a four-star, 11-story hotel on Saipan.

Ferdie De La Torre | Reporter
Ferdie Ponce de la Torre is a senior reporter of Saipan Tribune. He has a bachelor’s degree in journalism and has covered all news beats in the CNMI. He is a recipient of the CNMI Supreme Court Justice Award. Contact him at

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