Founder of LeEco has reportedly refused to return to China after requests to answer about his company’s financial situation turned up. According to Reuters, Jia Yueting, was ordered to return to his homeland by China’s Securities Regulatory Commission but has now opted to remain in the United States.
In a statement, Yueting said that he was focused on fundraising for LeEco-affiliated Faraday Future and could not travel at this time. Because he’s not returning to China to face their Securities Regulatory Commission, his brother, Jia Yuemin, will have to report back o the authorities.
This all started when LeEco quickly developed into a behemoth with interests in many different subsidiaries. The company began as an Entertainment company, but spread interests in different areas like wildfire.
Despite different interests, they company has spread itself too thin and had no financial foundation to back its ambitions for becoming bigger. LeEco’s former employees have described them ompany’s complex ownership structure as more than a “shell game” to hide losses of the company.