Duoyu Bei claims he is owed $1.28 million; Chao Wang claims he is owed $1.1 million. The two businessmen are at each other’s throats with allegations and counter-allegations over the funding and operation of Zeus nightclub formerly in central Auckland’s Durham Lane.
Mr Bei alleges he was misled by Mr Wang when buying into Zeus. The High Court was told he paid $400,000 in 2016 for a fifty per cent stake in the business and he committed to contributing a further $1.1 million for Club renovations. He alleges handwritten cashflow records provided by Mr Wang evidencing Zeus Club turnover were substantially overstated. He also alleges money provided for nightclub renovations was improperly diverted to upgrade a property on Paratai Drive, one of Auckland’s most expensive residential streets. It is alleged Mr Wang has an interest in the property through a family trust. Mr Wang denies any wrongdoing. Evidence was given that Mr Wang left for China in early 2017. Paratai Drive has been sold. Net sale proceeds of $1.27 million are held in escrow, in a law firm trust account, pending resolution of their dispute.
Mr Wang in turn claims $1.1 million. He alleges Mr Bei was in breach of their business agreement over the nightclub’s operation. He claims Mr Bei wrongly demanded immediate payment of $800,000 and threatened to contact Immigration (challenging his immigration status) and Inland Revenue (claiming he was understating income, dealing in cash). He alleges Mr Bei wrongfully locked him out of the business and claims he is entitled to a share in nightclub profits generated whilst Mr Bei was in sole charge.
Companies Office records show the company operating Zeus nightclub went into liquidation in April 2017 after its business lease was terminated. A company controlled by Mr Bei has agreed to purchase the building from which Zeus operated. Back in the High Court, the two are arguing over what documents each should disclose to the other, prior to trial.
Bei v. Wang – High Court (21.02.19)
19.045