Yvonne Yiu, a Democratic candidate for California’s Board of Equalization, aims to spotlight financial acumen as the cornerstone of her campaign. However, her financial history tells a different tale, marked by lawsuits and fines related to alleged financial mismanagement.
Legal documents provide a glimpse into Yiu’s contentious financial past, highlighting several lawsuits. One notable case involves a nearly $2 million construction loan that Yiu allegedly failed to repay. Another involves claims of defrauding a Chinese national, who invested $500,000 with the aim of securing permanent residency in the United States.
The Banc of California brought a lawsuit against Yiu last year, claiming she neglected her responsibilities as one of the guarantors for a construction loan initially taken out in 2020. The lawsuit explicitly states that Yiu “failed and refused” to settle the outstanding balance of over $1.8 million.
The legal proceedings in this particular case concluded with an out-of-court settlement, preventing further public scrutiny.
Additionally, in another legal entanglement from 2020, Chinese citizen Haining Wang accused several entities linked to Yiu of fraudulent practices. The lawsuit alleges Wang was misled into a $500,000 investment under the impression it would support her application for the EB-5 visa program, crucial for obtaining U.S. permanent residency.
In 2020, Chinese citizen Haining Wang sued multiple companies affiliated with Yiu after she was allegedly “fraudulently” persuaded into investing $500,000 into an enterprise project believed to qualify her for the EB-5 program and obtain permanent residency, according to court documents.
“Defendants have absconded with Plaintiffs $500,000 in ‘Capital investment funds,’ and $50,000 in ‘administrative fees’ by fraudulently inducing Plaintiff to invest in the enterprise created and maintained by Defendants, which Defendants misrepresented would return the money if her 1-526 was denied,” the court filing read.
A formal settlement agreement was later reached and resulted in Wang dismissing the case.
“One of my real estate projects involves several partners, each of whom contributes their own resources to the project,” Yiu told The Post in a statement. “One of our partners is involved in the EB-5 program, and I personally invested my own money to fulfill the shareholder obligation. The lawsuit primarily concerns one of my business partners, but all the owners were named in the lawsuit.”
Yiu was even sued by her former business partner, Jin Zeng, back in 2016 for allegedly breaching an oral agreement and sought $759,000 in damages. However, the court ruled in favor of Yiu.
This isn’t Yiu’s first political run, the former Monterey Park city councilmember previously ran for State Controller and State Senate, flooding both campaigns with millions in cash.
In 2022, Yiu contributed nearly $6 million in her own funds for her State Controller race that she eventually lost, followed by another roughly $3 million a few years later for a failed attempt to win a State Senate seat, according to CityWatch.
The Democrat, who cites her years of financial expertise and background managing billions at financial firms, vows to “root out waste and corruption” while protecting taxpayers money.
However, Yiu’s financial firm Key West LLC, was censured and fined $22,500 in 2014 for misusing client money by the Financial Industry Regulatory Authority (FINRA).
“Rather than depositing investor funds in a properly designated account, the firm caused investor funds to be deposited into a real estate trust account held by a company owned by one of the fund’s managing members,” according to FINRA.
Yiu told The Post that “these lawsuits targeted a group of owners, including me, and demanded the return of their investments” while underscoring that she is “not personally involved in any wrongdoing.”
“Regarding FINRA, the issue pertains to a project I was involved in. My business partner, who is not a FINRA member, used a typical business advertising style that did not fully comply with FINRA rules,” Yiu said. “Consequently, my firm had to pay a small fine without admitting or denying any wrongdoing. Importantly, this matter is unrelated to my personal license.”
The California State board of Equalization oversees the county property tax system, as well as the Alcoholic Beverage Tax and Tax on Insurers
“In Fiscal Year 2023-24, the net statewide assessed value was $8.6 trillion, contributing $51.1 billion to schools and $44.2 billion to counties, cities, and special districts,” according to California’s BOE website.
Yiu is facing off against a handful of Democrats in the BOE race, including state assembly member Mike Gipson, Samuel Sukaton, Baru Sanchez, and Republican Rey Portela.
