Eastern Profit, Eastern, a Hong Kong based company, representing Mr. Guo Wengui or Miles Kwok.
Strategic Vision, Strategic, a Nevada based consulting firm representing French Wallop and J. Michael Waller.
- Elliot Broidy and Nickie Lum Davis: On October 20th, 2020, the Department of Justice released the news that Elliot Broidy pleaded guilty to one count of conspiracy to violate the Foreign Agents Registration Act. This is after his co-conspirator Nickie Lum Davis pleaded guilty for her role in the scheme on August 31st, 2020.
The story started in January 2018, a Hong Kong firm, Eastern Profit, inked a contract with Strategic Vision US. However, Strategic did not fulfill its assigned responsibility by delaying the report and submitting wrong reports with entirely different information as requested by Eastern. On February 23rd, 2018, a letter was sent from Eastern to Strategic terminating the Contract and demanding a return of $1 million deposit paid by Eastern. After failing to receive a response from Strategic, Eastern filed a lawsuit against Strategic in March 2018 for BREACH OF CONTRACT and FRAUDULENT MISREPRESENTATION.
On March 19th, 2019, Strategic filed a letter to replace the first representing lawyers with James J McGuire.
This has been brought into question because Strategic’s initial lawyers withdrew for non-payment while Strategic was simply defending Eastern’s claims for the return of its $1 million deposit. Then suddenly when current counsel entered its appearance in this case, not only was Strategic able to afford the defense of Eastern’s contract claims, but Strategic for the first time asserted a fraud counterclaim against Eastern based on Guo’s political affiliation. Under such circumstances, the identification of Strategic’s funder has become the core of its fraud claim.
Shortly after the change of lawyer, Strategic submitted a Stipulation that Strategic’s funder is not a CCP member or anyone who affiliates the CCP on April 12th, 2019 and this was ordered. This means that whether the funder is a CCP or CCP affiliative can no longer be questioned in a trial.
Furthermore, in the Contract between the 2 parties, it contains a confidentiality agreement which ‘prohibits either party from disclosing to any third party of the existence of the contract, any work relating to the contract, and the participants in formulating, supervising, or executing the contract’s provisions.’
However, on July 22nd, 2019, Wall Street Journal published an article, titled “Chinese Tycoon Holed Up in Manhattan Hotel Is Accused of Spying for Beijing“, and it quoted the lawyer for Strategic: “our goal is not only to hold Guo and his network accountable but also to protect supporters of a free China from further injury. ” And “Guo was not the dissident he claimed to be; instead, a dissident-hunter and agent in the service of the People’s Republic of China and the CCP.” We all now know this is not true. Mr. Guo is a dissident from the CCP and a real fighter for freedom for the people of China.
A pre-trial document filed by Strategic on November 13th, 2020, as part of its affirmative defense, showed “neither Lum Davis nor Broidy pled guilty to accepting money from the CCP or even working on its behalf. Nor is there evidence that either of these individuals would ever choose to work on behalf of the CCP and against the interest of the US.” Together with other wording stated in the document, Strategic has proactively raised the possibility that these 2 criminals were involved in Strategic’s funding and then explicitly refused to deny their involvement; hence, Eastern should be entitled to explore this at trial.
Our analysis showed that because the Stipulation by Strategic at the Discovery that Strategic has stated “Suspected Funder(s)” is not a member or affiliative of the CCP under Oath. With the conviction of Lum Davis and Broidy, Strategic would then have to admit its lie under oath. With this unforeseen progress of Broidy and Davis, Strategic, to avoid embarrassment, asserted an affirmative fraud claim based on the premise that its funders are ardently anti-communist and would never do business with anyone who has ties to the CCP.
Edited by：【Himalaya Hawk Squad】