He was tricked and then lied to; Mojun Wang stands as an unsecured creditor in Xin Xu’s bankruptcy for a two million dollar debt after Xu misappropriated funds held for investment.
The High Court was told Mr Wang placed two million dollars with Mr Xu for a business to be set up in New Zealand exporting infant food and baby formula to China.
In late 2013, Mr Wang learnt this money had been improperly diverted by Mr Xu. Instead of setting up a new company as proposed, Mr Xu spent the money on a ten per cent stake in an existing infant food business: Doxcon Pharmaceuticals Ltd.
When challenged, Mr Xu produced an asset register detailing Doxcon as a company of substance with fixed assets valued at $19.7 million. This asset register was forged; at best, Doxcon held assets valued at $2.2 million.
Doxcon went into liquidation insolvent in 2015. The two million dollar investment was lost.
Evidence was given of a subsequent meeting between Mr Wang and Mr Xu in which Mr Xu blamed Doxcon management for the forgery, promising to recover Mr Wang’s two million dollars.
Mr Wang told the High Court Mr Xu promised to personally make good the loss if steps taken against Doxcon management were unsuccessful.
After receiving nothing, Mr Wang sued.
Mr Xu filed for bankruptcy.
As is the norm, Insolvency Service required sufficient proof that Mr Wang is owed two million dollars before accepting his claim in Mr Xu’s bankruptcy.
Mr Xu did not defend Mr Wang’s High Court application where Justice Anderson ruled Mr Wang is a creditor in Mr Xu’s bankruptcy, owed two million dollars.
Wang v. Xin Xu (a bankrupt) – High Court (19.03.26)
26.108