Damages Of Us$5.4 Million Awarded Against Lehman, Lee & Xu
Damages of US$5.4 Million Awarded Against Lehman
, Lee & Xu
A US$5.4 million dollar judgment has been achieved against Lehman, Lee & Xu after the presiding judge granted a U.S. Rule 37 motion for terminating sanctions. The plaintiffs in the case were represented by The Layfield Law Firm, APC of Marina del Rey, California. The case began on September 3, 2010 when a civil lawsuit was filed against Lehman, Lee & Xu, Ltd., its affiliated companies and the Managing Director Edward E. Lehman (collectively the Lehman Defendants). The Lehman Defendants were being accused of operating a Ponzi scheme where they were using client funds to pay for other unauthorized expenses.
The lawsuit claimed that in June of 2010, the Lehman Defendants had fraudulently induced the plaintiffs and their investors to deposit approximately US$1.2 million into an escrow account which the defendants subsequently misappropriated. Lehman, Lee & Xu, Ltd. is a law firm based in Beijing, claiming to be the third largest corporate commercial law firm in China. The law firm was founded by Edward Eugene Lehman, who is a Chicago native and U.S. citizen.
On May 1, 2012, a US$5.4 million dollar judgment was achieved against Lehman, Lee & Xu in the New York Federal Court after the judge granted a Rule 37 motion for terminating sanctions. Of this award, US$1,135,850 was awarded in compensatory damages, US$3,407,550 in treble damages under 18 U.S.C. 1964 (c) for the plaintiffs RICO conspiracy claims, and the remaining going to attorneys fees, punitive damages and prejudgment interest.
Edward Lehman is also in trouble in Hong Kong, where he has been sued by his business partner in the China accounting practice LehmanBrown.
Edward Lehman and Russell Brown began the firm LehmanBrown just over 10 years ago. Lehman was found guilty of contempt of court and ordered to pay damages and costs in the Hong Kong case that essentially relates to the control of the LehmanBrown firm and the ownership of trademarks. LehmanBrowns troubles as a firm as a result of the feuding between their two Partners has been going on for several years now.
Chris Devonshire-Ellis, of Dezan Shira & Associates states, We have also had problems with LehmanBrown while Ed Lehman was a partner there. They metatagged our name meaning that when Dezan Shira and names of our partners were typed into search engines, LehmanBrowns firm contacts appeared as the top search engine results. We brought a lawsuit against LehmanBrown at that time in Hong Kong. Im afraid that Ed Lehmans character does not appear to have improved since that time. Whether or not this U.S. judgement will filter down to affect assets held in other practices and businesses by Edward Lehman must remain a concern.
In terms of satisfying the U.S. decision, procedures need to be gone through to enforce the judgment in China, a process that may take some time and is likely to be prolonged given Lehmans proven attitude towards litigation against his interests.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia.
For further details or to contact the firm, please email china@dezshira.com, visit www.dezshira.com, or download the company brochure.
You can stay up to date with the latest business and investment trends across China by subscribing to The China Advantage, our complimentary update service featuring news, commentary, guides, and multimedia resources.
This article was written for the
by: China Briefing
The Structure Features Of Symons Cone Crusher Best Dynamic Off Roaders Money Can Buy Frequent Reasons In Divorce Natural Skin Care Ndr-drehbuch-affre: Die Angeklagten Beschuldigen Sich Gegenseitig Removing Asbestos 5 Ways To Develop Your Individual Style Bottega Veneta Sale To The Integrating Dish Who Hires Certified Industrial Hygienists 7 Things Ladies Do That Drive Guys Mad. Runescape Task Guide - Walkthrough The Desert Treasure What Happens When An Industrial Hygienist Tests My Air Quality Good Way To Convert Mts Files To Avi On Mac