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Joint Appendix of Facts — United States ex rel. GNGH2 v. XLD Century LLC (Dkt. 65-2, C.D. Cal.)
Summary
A joint appendix of facts in United States ex rel. GNGH2, Inc. v. XLD Century LLC and XLD Group LLC, Case No. 2:22-cv-05514-SB, in the U.S. District Court for the Central District of California, filed April 1, 2024 as Document 65-2 in support of the cross-motions for summary judgment. Each numbered fact is listed with its supporting evidence and the other side's response. Undisputed facts include that XLD Group and XLD Century each received a forgivable second-draw PPP loan in 2021, XLD Century's in the amount of $2,000,000, and that a borrower had to complete and submit Form 2483-SD to receive a second-draw loan.
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Filed April 1, 2024 in United States ex rel. GNGH2 v. XLD Century LLC; one of 11 filings from this case.
Record facts
| Court | U.S. District Court for the Central District of California |
|---|---|
| Filed | 2024-04-01 |
Cite this document
“Joint Appendix of Facts — United States ex rel. GNGH2 v. XLD Century LLC (Dkt. 65-2, C.D. Cal.).”
U.S. District Court for the Central District of California, No. 2:22-cv-05514, Doc. 65-2, filed 2024-04-01. Archived at Pandemic Darlings, https://pandemicdarlings.com/court-filings/full-docket-xld-century-llc-cacd-859554/2024-04-01-gov-uscourts-cacd-859554-65-2-doc-65/
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Case 2:22-cv-05514-SB-PVC Document 65-2 Filed 04/01/24 Page 1 of 19 Page ID
#:337
1 UNITED STATES DISTRICT COURT FOR
2 THE CENTRAL DISTRICT OF CALIFORNIA
3
4 United States ex rel. GNGH2, ) Case No. 2:22-cv-05514-SB(PVCx)
)
5
Plaintiff-Relator, ) Joint Appendix of Facts
6 )
v. )
7
)
8 XLD Century LLC and XLD )
GROUP LLC, )
9
)
10 Defendants. )
_______________________________)
11
12 The parties jointly, by and through their counsel of record, hereby submit
13
this Joint Appendix of Facts in connection with the parties' motions for summary
14
judgment.
15
16 SUF # Fact Supporting Defendants'
Evidence
17
Response
18
PLAINTIFF'S APPENDIX OF FACTS
19
I. Background: The Defendants
20
1 Defendant XLD Group Complaint ¶ 3 Undisputed.
21
LLC ("XLD Group") is a [JAE Ex. B],
22 California LLC Answer ¶ 1 [JAE
Ex. C]
23
2 Defendant XLD Group Complaint ¶ 3 Objection.
24 operates the Torrance [JAE Ex. B], Immaterial as to
Marriott Hotel. Answer ¶ 1 [JAE who “operates” the
25 Ex. C]; Zhang Dep. hotel. Disputed that
26 25:12-14 [JAE Ex. XLD Group
E] “operates” the
Joint Appendix of Facts
Case 2:22-cv-05514-SB-PVC Document 65-2 Filed 04/01/24 Page 2 of 19 Page ID
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1
Torrance Marriott
Hotel. It “owns” the
2 hotel, which is
3
“operated by
Marriott
4 Management.”
(Zhang Depo.
5
25:12-14; 26:10-16,
6 Ex. 4; Answer 2:13-
15, Ex. C)
7
3 Defendant XLD Century Complaint ¶ 2 Undisputed.
8 LLC ("XLD Century") is [JAE Ex. B],
a California LLC Answer ¶ 1 [JAE
9
Ex. C]
10 4 Defendant XLD Century Complaint ¶ 2 Objection.
operates the LAX [JAE Ex. B]; Immaterial as to
11
Marriott Hotel. Answer ¶ 1 [JAE who “operates” the
12 Ex. C]; Zhang Dep. hotel. Disputed that
25:9-11 [JAE Ex XLD Group
13
E] “operates” the
14 Torrance Marriott
Hotel. It “owns” the
15
hotel, which is
16 “operated by
Marriott
17
Management.”
18 (Zhang Depo. 25:9-
12, 26:10-16, Ex. 4;
19
Answer 2:13-15,
20 Ex. C)
II. Background: The PPP Loans
21
22 5 In 2021, XLD Group Complaint ¶ 13 Undisputed.
received a forgivable [JAE Ex. B],
23
second-draw PPP loan Answer ¶ 1 [JAE
24 (loan number Ex. C]; Zhang Dep.
28702090021) in the 34:9-20, Ex. 2.
25 amount of $2,000,000 [JAE Ex E, F]
26 which was forgiven on
Joint Appendix of Facts
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1
January 6, 2022 (the
"XLD Group Loan")
2 6 In 2021 XLD Century Complaint ¶ 13 Undisputed.
3
received a forgivable [JAE Ex. B];
second-draw PPP loan Answer ¶ 1 [JAE
4 (loan number Ex. C]; Zhang Dep.
5
2613428708) in the Ex. 3 and 50:25-
amount of $2,000,000 51:7. [JAE Ex. E,
6 which was forgiven on G]
December 15, 2021 (the
7
"XLD Century Loan")
8 7 A requirement to receive SBA Aff. ¶ 5 [JAE Undisputed.
a second-draw PPP loan Ex. D]; Zhang
9
is that the borrower must Dep. 34:9-12 [JAE
10 complete and submit Ex E]
Form 2483-SD (the
11
"Application Form")
12 8 The Application Form Zhang Dep. Ex. 2, Undisputed.
contains a number of 3 [JAE Ex. F, G];
13
certifications which must Zhang Dep. 33:16-
14 be initialed by the 21, 50:25-51:7
borrower, stating: [JAE Ex. E]; SBA
15
Aff. ¶ 6 [JAE Ex.
16 The authorized D].
representative of the
17
Applicant must certify in
18 good faith to all of the
below by initialing next
19
to each one:.
20 9 One of the certifications SBA Aff. ¶ 6 [JAE Undisputed.
which must be initialed Ex. D]; Zhang
21
by the borrower (the Dep. Ex. 2, 3 [JAE
22 "PRC Certification") Ex. F, G];
states as follows: Complaint ¶ 14
23
[JAE Ex. B],
24 The Applicant is not a Answer ¶ 4 [JAE
business concern or entity Ex. C]; Pl. RFA
25 (a) for which an entity No. 12 [JAE Ex.
26 created in or organized N], Def. Response
under the laws of the
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1
People’s Republic of to RFA No. 12.
China or the Special [JAE Ex. O]
2 Administrative Region of
3
Hong Kong, or that has
significant operations in
4 the People’s Republic of
China or the Special
5
Administrative Region of
6 Hong Kong, owns or
holds, directly or
7
indirectly, not less than
8 20 percent of the
economic interest of the
9
business concern or
10 entity, including as equity
shares or a capital or
11
profit interest in a limited
12 liability company or
partnership; . . .
13
14 10 The authorized Zhang Dep. 33:16- Undisputed.
representative of XLD 24, Ex 2 [JAE Ex.
15
Group initialed the PRC E, F]; Pl RFA No.
16 Certification on its 12 [JAE Ex. N],
Application Form. Def Response to
17
RFA No. 12 [JAE
18 Ex. O]
11 This initialing was done Zhang Dep. p. Undisputed.
19
in order to receive the 34:2-12 [JAE Ex.
20 XLD Group Loan E]; Pl. RFA No. 12
[JAE Ex. N], Def.
21
Response to RFA
22 No. 12 [JAE Ex.
O]
23
12 XLD Group did receive Zhang Dep. 34:13- Undisputed.
24 the $2,000,000 loan as a 18 [JAE Ex. E];
result of its submission of Complaint ¶ 13
25 an Application Form. [JAE Ex. B],
26 Answer ¶ 1 [JAE
Ex. C]
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1
13 The XLD Group Loan Zhang Dep. 34:19- Undisputed.
was eventually forgiven. 21 [JAE Ex. E];
2 Complaint ¶ 13
3
[JAE Ex. B],
Answer ¶ 1 [JAE
4 Ex. C]
5
14 The authorized Zhang Dep. 50:25- Undisputed.
representative of XLD 51:7, Zhang Dep.
6 Century initialed the PRC Ex. 3 [JAE Ex. E,
Certification on its G], Pl RFA No. 12
7
Application Form [JAE Ex. N], Def
8 Response to RFA
No. 12 [JAE Ex.
9
O]
10 15 This initialing was done Zhang Dep. p. Undisputed.
in order to receive the 50:25-51:7; 34:2-
11
$2,000,000 loan. 12 [JAE Ex. E]; Pl
12 RFA No. 12 [JAE
Ex. N], Def
13
Response to RFA
14 No. 12 [JAE Ex.
O]
15
16 XLD Century did receive Zhang Dep. 50:25- Undisputed.
16 the $2,000,000 loan as a 51:7, 34:13-18
result of its submission of [JAE Ex. E];
17
an Application Form. Complaint ¶ 13
18 [JAE Ex. B];
Answer ¶ 1 [JAE
19
Ex. C]
20 17 The XLD Century Loan Zhang Dep. 50:25- Undisputed.
was eventually forgiven. 51:7, 34:19-21
21
[JAE Ex. E];
22 Complaint ¶ 13
[JAE Ex. B];
23
Answer ¶ 1 [JAE
24 Ex. C]
Background: Corporate Structure of the Defendants and Their Affiliates
25
26
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1
18 XLD Group is Zhang Dep. 16:7- Vague as to
substantially owned by 12, 19:11-22 [JAE “substantially.”
2 XLD N.A. Real Estate, Ex. E] XLD N.A. Real
3
Inc. Estate, Inc. owns
95% of XLD Group
4 (Zhang Depo. 16:9-
12, Ex. 4)
5
19 XLD N.A. Real Estate, Zhang Dep. 16:4-6, Vague as to
6 Inc. is substantially 19:11-22 [JAE Ex. “substantially.”
owned by XLD U.S. Top E] XLD U.S. Top LLC
7
LLC owns 100% of XLD
8 N.A. Real Estate,
Inc. (Zhang Depo.
9
16:4-6, 19:11-22,
10 Ex. 4)
20 XLD U.S. Top LLC is Zhang Dep. 15:23- Vague as to
11
substantially owned by 16:3, 19:11-22. “substantially.”
12 an entity known as [JAE Ex. E] Sichuan Singlida
Sichuan Singlida. owns 100% of XLD
13
U.S. Top LLC
14 (Zhang Depo.
18:24-19:2, 19:11-
15
22, Ex. 4)
16 21 Sichuan Singlida is Zhang Dep. 23:6- Vague as to
substantially owned by 11 [JAE Ex. E] “substantially.” Jun
17
an individual named Jun Zhang owns the
18 Zhang. majority of shares
in Sichuan Singlida.
19
(Zhang Depo. 23:3-
20 11, Ex. 4)
22 XLD Century is Zhang Dep. 21:3-7 Vague as to
21
substantially owned by [JAE Ex. E] “substantially.”
22 an entity called XLD XLD Investment,
Investment. Inc. owns
23
approximately 89%
24 of XLD Century.
(Zhang Depo. 21:3-
25 7, Ex. 4)
26
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1
23 XLD Investment is Zhang Dep. 21:8- Vague as to
substantially owned by 14 [JAE Ex. E] “substantially.”
2 XLD U.S. Top LLC XLD U.S. Top LLC
3
owns 100% of XLD
Investment, Inc.
4 (Zhang Depo. 21:8-
14, Ex. 4)
5
24 The ultimate parent entity Zhang Dep. 22:2- Undisputed, but
6 of XLD Group is Sichuan 14 [JAE Ex. E]; immaterial in that
Singlida Complaint ¶ 16 Defendants do not
7
[JAE Ex. B], own, or hold any
8 Answer ¶ 1 [JAE interest in, Sichuan
Ex. C] Singlida
9
25 The ultimate parent Zhang Dep. 22:2- Undisputed, but
10 company of XLD 14 [JAE Ex. E]; immaterial in that
Century is Sichuan Complaint ¶ 16 Defendants do not
11
Singlida. [JAE Ex. B], own, or hold any
12 Answer ¶ 1 [JAE interest in, Sichuan
Ex. C] Singlida
13
False Claims Act Element 1: Falsity
14
26 Sichuan Singlida is a Zhang Dep. 22:2- Undisputed, but
15
Peoples' Republic of 14, 14:9-20 [JAE immaterial in that
16 China entity which is Ex. E]; Complaint Defendants do not
based in the People's ¶ 16 [JAE Ex. B], own, or hold any
17
Republic of China. Answer ¶ 1 [JAE interest in, Sichuan
18 ("PRC") Ex. C] Singlida
27 At all times relevant to Complaint ¶ 16, Undisputed, but
19
this matter, including the [JAE Ex. B] immaterial in that
20 time of the XLD Group Answer ¶ 1 [JAE Defendants do not
Loan, XLD Group was Ex. C]; Zhang Dep. own, or hold any
21
ultimately and 80:10-25 [JAE Ex. interest in, Sichuan
22 substantially owned by a E] Singlida
PRC company.
23
28 At all times relevant to Complaint ¶ 16 Undisputed, but
24 this matter, including the [JAE Ex. B], immaterial in that
time of the XLD Century Answer ¶ 1 [JAE Defendants do not
25
Loan, XLD Century was Ex. C] Zhang Dep. own, or hold any
26 ultimately and 80:10-25 [JAE Ex. interest in, Sichuan
E] Singlida
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1
substantially owned by a
PRC company.
2 False Claims Act Element 2: Scienter
3
29 The authorized Zhang Dep. Ex. 2; Undisputed.
4 representative of XLD Zhang Dep. 5:7-17;
5
Group who completed the Zhang Dep 29:21-
Application Form was 30:15; Zhang Dep.
6 Jiaqi Zhang ("Ms. 33:1- 34:8 [JAE
7
Zhang") Ex. E, F]
30 The authorized Zhang Dep. Ex. 3 Undisputed.
8 representative of XLD Zhang Dep. 5:7-17;
9
Century who completed Zhang Dep 29:21-
the Application Form was 30:15; Zhang Dep.
10 Ms. Zhang. 33:1- 34:8; Zhang
Dep. 50:25-51:7
11
[JAE Ex. E, G]
12 31 Ms. Zhang is Vice Zhang Dep. 8:15- Undisputed.
President of XLD Group. 21 [JAE Ex. E]
13
32 Ms. Zhang is Vice Zhang Dep. 8:15- Undisputed.
14 President of XLD 21 [JAE Ex. E]
Century
15
33 At the time she Zhang Dep. 80:10- Undisputed.
16 completed the 24; Zhang Dep.
Application Form of 22:2-14 [JAE Ex.
17
XLD Group, Ms. Zhang E]
18 was aware that XLD
Group was ultimately
19
owned by a PRC
20 company.
34 At the time she Zhang Dep. 80:10- Undisputed.
21
completed the 24; Zhang Dep.
22 Application Form of 22:2-14 [JAE Ex.
XLD Century, Ms. Zhang E]
23
was aware that XLD
24 Century was ultimately
owned by a PRC
25
company.
26
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1
35 The Application Form of Zhang Dep. Ex 2, Disputed as to the
XLD Group asks the Zhang Dep. 52:23- precise wording:
2 applicant to identify the 53:8 [JAE Ex. E, The form does not
3
applicant's owners. F] ask “to identify the
applicant’s
4 owners.” Rather, it
states: “List all
5
owners of 20
6 percent of more of
the equity of the
7
applicant.” (Ex 2 to
8 Zhang Depo. Ex. E;
Zhang Depo. 52:23-
9
53:8, Ex. 4)
10 36 The Application form of Zhang Dep. Ex. 2 Objection.
XLD Group identifies its [JAE Ex. F] Compound.
11
owners as two Disputed in part as
12 individuals; XLD N.A. to “Sichuan
Real Estate, Inc.; and Singlida is not
13
Grand Tripod LLC.; identified” because
14 Sichuan Singlida is not it is misleading.
identified. Sichuan Singlida
15
did not need to be
16 identified as being
the 20% or more
17
equity of the
18 applicant because it
does not own any
19
percentage of the
20 equity of the
applicant
21
37 XLD N.A. Real Estate JAE Ex. L. Undisputed.
22 Inc. is a California
corporation.
23
38 Grand Tripod LLC is a JAE Ex. M. Undisputed.
24 California LLC.
39 When asked about this Zhang Dep. 53:6- Undisputed, but
25 discrepancy on the 18, 57:6-58:9; misleading without
26 Application Form, Ms. [JAE Ex. E] the omitted parts of
Zhang denied completing Zhang Depo 53:19-
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ID #:346
1
this part of the 57:5, 58:10-59:19.
Application Form and Zhang submitted
2 testified that she did not the answers online
3
know where this and did not have the
information had come opportunity to
4 from and speculated that review everything
it had somehow been prior to submission
5
inserted "electronically." and did not know
6 how the information
got into a form,
7
such in “four lines.”
8 (Zhang Depo. 53:6-
57:5, 57:24-59:19,
9
Ex. 4)
10
Objection. Vague
11
and ambiguous as to
12 “this discrepancy,”
which appears to
13 imply the issue of
14 Sichuan Singlida
not being included
15 as an equity owner.
16
Disputed that Zhang
17 was asked about
“this discrepancy.”
18
Zhang was asked
19 about Zhang’s own
ownership interest
20
in Defendants, not
21 about Sichuan
Singlida’s. (Zhang
22
Depo. 53:6-18, Ex.
23 4)
24 It is not a
25 discrepancy because
Sichuan Singlida is
26 not an equity owner
Joint Appendix of Facts
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ID #:347
1
of Defendants.
(Zhang Depo. 53:6-
2 18, 56:18-58:19,
3
Ex. 4)
4 Objection. Vague
and ambiguous as to
5
“this information,”
6 which appears to
imply the issue of
7
Sichuan Singlida.
8 “This information”
was about Zhang’s
9
own ownership
10 interest in
Defendants. (Zhang
11
Depo. 53:19-57:5.
12 58:10-59:19, Ex. 4)
40 The Application Form of Zhang Dep. Ex. 3, Disputed as to the
13 XLD Century asks the Zhang Dep. 61:9- precise wording:
14 applicant to identify the 62:3 [JAE Ex. E, The form does not
applicant's owners. G] ask “to identify the
15 applicant’s
16 owners.” Rather, it
states: “List all
17 owners of 20
18 percent of more of
the equity of the
19 applicant.” (Ex 2 to
20
Zhang Depo., Ex.
E; Zhang Depo.
21 52:23-53:8, Ex. 4)
22
41 The Application Form of Zhang Dep. Ex. 3; Undisputed, but
XLD Century incorrectly Zhang Dep. p. incomplete in that
23 identifies one individual 61:9-62:12 [JAE the one individual is
24
as an owner. Ex. E, G] Zhang, who denied
having any
25 ownership, denied
26
listing herself an
owner and did not
Joint Appendix of Facts
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ID #:348
1
know where that
information came
2 from. (Zhang Depo.
3
62:13-19, Ex. 4)
42 In connection with the Zhang Dep 69:8- Undisputed.
4 application for the XLD 70:6, Zhang Dep.
5
Group Loan, Ms. Zhang Ex. 5 [JAE Ex. E,
had email correspondence H]
6 with the lending bank.
7
43 This email Zhang Dep. Ex. 5. Undisputed, but
correspondence, among [JAE Ex. H] misleading in that
8 other things, instructed the phrase at issue
Ms. Zhang to provide was sandwiched
9
information regarding between two
10 XLD Group as follows: requests for
personal
11
If the ownership structure information of
12 involves multiple layers individual owners
of corporations, without any break
13
partnerships and/or trust between the
14 please provide a detailed requests and the
lineage of the entire email begins
15
ownership until it arrives and ends with the
16 at the Beneficial Owners requests for
(Individual(s)/ Person(s). personal
17
information for
18 individual owners
in 10 size italicized
19
font. (Ex. 5 to
20 Zhang Depo., Ex.
H)
21
44 In response to the email, Zhang Dep. Ex. 5 Undisputed.
22 Ms. Zhang stated as [JAE Ex. H]
follows: "Jun Zhang
23
owns 100% of XLD
24 Group N.A. Real Estate
Development, Inc"
25 45 In response to the bank's Zhang Dep. Ex. 5 Undisputed, but
26 email Ms. Zhang [JAE Ex. H] misleading in that
identified the U.S. the email sought
Joint Appendix of Facts
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ID #:349
1
intermediary owner but personal
not the ultimate PRC information relating
2 parent corporation of to “individual.” (Ex
3
XLD Group. 5 to Zhang Depo.,
Ex. H)
4 46 Initially, Ms. Zhang Zhang Dep. 71:11- Undisputed as to
5
testified that she had read 73:23 [JAE Ex. E] Zhang’s initial
the instructions contained testimony, but
6 in the email, however disputed as to being
upon being confronted “evasive.” She was
7
with the language about not evasive and
8 disclosing a detailed speculated only as
corporate lineage, she to not reading the
9
became evasive and “entire” e-mail.
10 ultimately speculated that (Zhang Depo.
she had not read the 73:18-74:4, Ex. 4)
11
instructions.
12 47 Ms. Zhang also testified Zhang Dep. 38:13- Undisputed, but
at deposition that she is 17 [JAE Ex. E]. irrelevant and
13
confident -- even now -- immaterial in that
14 that the certification Zhang’s current
language at issue applies state of mind is not
15
to subsidiaries and not material.
16 parents.
17
18 False Claims Act Element 3: Materiality
19
48 According to the SBA SBA Aff. ¶ 6-8 Undisputed.
20 and its procedures, an [JAE Ex. D];
applicant that could not Zhang Dep. Ex. 2,
21
or would not make the 3 ("The authorized
22 PRC certification would representative of
not be eligible for the the Applicant must
23
loan. certify in good
24 faith to all of the
below . . . .") [JAE
25 Ex. F, G]; Pl. RFA
26 No. 12 [JAE Ex.
N], Def. Response
Joint Appendix of Facts
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ID #:350
1
to RFA No. 12
[JAE Ex. O]
2 49 Defendants were served Pl. RFA [JAE Ex. Undisputed.
3
with an RFA which stated N]
as follows:
4
5
Each Defendant in this
matter had to Manifest
6 Assent to a PRC
Certification in order to
7
receive the Applicable
8 Disaster Relief.
50 Defendant responded to Def. Response to Undisputed.
9
this RFA as follows: RFA [JAE Ex. O]
10
See General Objections.
11
Further, compound,
12 vague and ambiguous.
Subject to and without
13
waiving these objections,
14 Defendants answer as
follows: Admit that
15
Defendants initialed the
16 applicable boxes prior to
receiving the PPP relief
17
funds.
18
51 Defendants were served Pl. RFA [JAE Ex. Undisputed.
19
with an RFA which stated N]
20 as follows:
21
Each Defendant in this
22 matter would not have
received the Applicable
23
Disaster Relief had it not
24 Manifested Assent to a
PRC Certification.
25 52 Defendants responded to Def. Response to Undisputed.
26 this RFA as follows: RFA [JAE Ex. O]
Joint Appendix of Facts
Case 2:22-cv-05514-SB-PVC Document 65-2 Filed 04/01/24 Page 15 of 19 Page
ID #:351
1
See General Objections.
Further, vague and
2 ambiguous; calls for
3
speculation on the part of
Defendants. Subject to
4 and without waiving
these objections,
5
Defendants answer as
6 follows: Admit that
Defendants initialed the
7
applicable boxes prior to
8 receiving the PPP relief
funds.
9
53 Plaintiff intends to obtain Abrams Aff. ¶ 16- Undisputed.
10 additional discovery 17 [JAE Ex. A]
which is expected to
11
confirm that there is a
12 clear relationship of
materiality and causation
13
between (1) the
14 Defendants' PRC
Certifications; and (2) the
15
United States' payment of
16 the disaster relief at issue
in this matter.
17
False Claims Act Element 4: Causation
18
54 Pursuant to SBA program SBA Aff. ¶ 5 [JAE Undisputed.
19
rules, applicants for Ex. D]; Zhang
20 second-draw PPP relief Dep. 45:3-8, Zhang
were required to complete Dep. 46:14-18,
21
the Application Form in Zhang Dep. Ex 3, 3
22 order to participate in the [JAE Ex. E, F, G]
program
23
Damages
24
55 In the case of a SBA Aff. ¶ 3 [JAE Undisputed.
25
$2,000,000 second-draw Ex. D]; Pl. RFA
26 PPP loan which is No. 5 [JAE Ex. N],
forgiven, the United Def Response to
Joint Appendix of Facts
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ID #:352
1
States makes a payment RFA No. 5 [JAE
of $2,000,000 to the Ex. O]
2 lending bank.
3
56 In addition to such a SBA Aff. ¶ 3 [JAE Undisputed.
$2,000,000 payment the Ex. D]
4 SBA would make a small
5
interest payment to the
lending bank.
6 57 In the case of the XLD XLD Group Loan Undisputed.
7
Group Loan, the total Forgiveness Letter
payment of $2 million [JAE Ex. I].
8 plus interest was
$2,012,547.95
9
58 In the case of the XLD XLD Century Loan Undisputed.
10 Century Loan the total Forgiveness Letter
payment of $2 million [JAE Ex. J].
11
plus interest was
12 $2,013,808.22
59 In the case of a SBA Aff. ¶ 4 [JAE Undisputed.
13
$2,000,000 second-draw Ex. D]; JAE Ex. K.
14 PPP loan which is p. 2.
forgiven, the United
15
States makes an
16 additional payment of
$60,000 to the lending
17
bank for processing fees.
18 60 The Defendants' Answer Answer [JAE Ex. Disputed. (Answer,
does not assert a C] 2:9-17, Ex. C)
19
"voluntary disclosure"
20 defense pursuant to 31
U.S.C. § 3729(b)
21
DEFENDANTS’ APPENDIX OF FACTS
22
SUF Fact Supporting Evidence Plaintiff’s Response
23 No.
FCA Element 1: Falsity
24
25 61. Defendants were not Zhang Declaration, Admitted.
created in or ¶3, Ex. 3; Zhang
26
organized under the
Joint Appendix of Facts
Case 2:22-cv-05514-SB-PVC Document 65-2 Filed 04/01/24 Page 17 of 19 Page
ID #:353
1
laws of the People’s Depo. 35:10-16, Ex.
Republic of China or 4.
2 the Special
3
Administrative
Region of Hong
4 Kong (collectively
“China or Chinese.”)
5
62. Defendants do not Zhang Declaration, Admitted.
6 operate in China. ¶4, Ex. 3; Zhang
Depo. 80:19-81:10,
7
Ex. 4.
8 63. Defendants do not Zhang Declaration, ¶5 Admitted.
own any Chinese Ex. 3; Zhang Depo.
9
companies. 80:19-81:10, Ex. 4.
10 64. Defendants do not Zhang Declaration, Admitted.
own any interest in ¶5, Ex. 3; Zhang
11
any Chinese Depo. 35:3-16, Ex. 4.
12 companies.
FCA Element 2: Scienter
13
14 65. Defendants’ Zhang Declaration, Disputed. In
representative Jiaqui ¶6, Ex. 3; Zhang completing the
15
Zhang (“Zhang”) Depo. 35:3-16, 38:4- applications and
16 understood, at the 39:3, 42:1-5, Ex. 4. corresponding with the
time she entered her lending bank, Zhang
17
initials on the provided false
18 certification at issue information which had
(“Certification”) in the effect of concealing
19
SBA Form 2483-SD, the Defendants' PRC
20 as making ineligible ownership.Additionally,
those companies that Zhang's testimony on
21
“own or hold” this point was evasive
22 interest in a Chinese and non-credible.
company. Materials in Support of
23
JAF 35-47, namely
24 Zhang Dep. 38:13-17;
52:23-53:18; 57:6-58:9;
25
61:9-62:12; 69:8-70:6;
26 71:11-73:23 [JAE Ex
E]; Zhang Dep. Exh 2,
Joint Appendix of Facts
Case 2:22-cv-05514-SB-PVC Document 65-2 Filed 04/01/24 Page 18 of 19 Page
ID #:354
1
3, 5 [JAE Exh F, G, H];
JAE Ex. L, M.
2 66. Zhang read Zhang Declaration, Admitted.
3
Certification ¶6, Ex. 3; Zhang
carefully. Depo. 34:2-5, Ex. 4.
4 67. Zhang entered her Zhang Declaration, Disputed. Zhang was
5
initials on ¶6, Ex. 3; Zhang aware at the time of the
Certification Depo. 35:10-16, certification that the
6 truthfully based on 80:19-24, Ex. 4. Defendants were PRC-
7
Zhang’s own reading owned. Materials in
of Certification and Support of JAF 33-34,
8 on Defendants not namely Zhang Dep.
owning or holding 80:10-24; Zhang Dep.
9
any interest in a 22:2-14 [JAE Ex. E].
10 Chinese company. Additionally, in
connection with the
11
applications Zhang
12 provided false
information which had
13
the effect of concealing
14 the Defendants' PRC
ownership. Materials in
15
Support of JAF 35-47,
16 namely Zhang Dep.
38:13-17; 52:23-53:18;
17
57:6-58:9; 61:9-62:12;
18 69:8-70:6; 71:11-73:23
[JAE Ex E]; Zhang
19
Dep. Exh 2, 3, 5 [JAE
20 Exh F, G, H]; JAE Ex.
L, M.
21
22 Public Disclosure Bar
23
68. Facts disclosed in Public Disputed. The public
24 various “news disclosures, Ex. 6-26; disclosure materials,
media,” in Pl Response to whether considered
25 combination, indicate Interrogatories, Ex. individually or
26 substantially the 27; Pl Amended combined, do not
same allegations Response to indicate that either
Joint Appendix of Facts
Case 2:22-cv-05514-SB-PVC Document 65-2 Filed 04/01/24 Page 19 of 19 Page
ID #:355
1
contained in the Interrogatories, #8-13, specific Defendant was
complaint. Ex. 5 PRC-owned in 2021
2 which is the relevant
3
time period. Ex. 6-26.
69. Relator is not the 2/12/24 IDC Minutes, Admitted.
4 “original source.” Ex. 1.
5
6
7
8
9
10 /s/ David Abrams
11 David Abrams, Attorney at Law
12 Attorney for Plaintiff-Relator
PO Box 3353 Church Street Station
13 New York, NY 10008
14 Tel. 212-897-5821
dnabrams@wjlf.org
15 April 1
Dated: ____________, 2024
16
Delhi, New York
17
18
MOON & DORSETT, PC
/s/ Dana Moon / DNA
19 by:________________________
20
Dana Moon, Esq. (Bar No. 185154)
21 wk@moondorsett.com
445 S. Figueroa Street, Suite 2900
22
Los Angeles, CA 90071
23 Telephone: (213) 380-1526
April 1
Dated: __________ ____, 2024
24
Los Angeles, CA
25 David Abrams hereby attests that by email dated April 1, 2024 Defendants'
26
counsel indicated that she concurred in this document and consents to its
filing.
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