On May 12th of this year, after first working with the Special Administrator to resolve, Frontier State Bank filed for foreclosure on the 142nd Street location citing default on a $3.2 million mortgage. Over the next several months the Special Administrator reported that Lu and Wu had not complied with demands for complete historic financial data in order to reconcile the flow of funds in and out of the three entities.Įven with the assistance of the court-appointed CPA, payroll taxes and mortgages went unpaid as existing funds and revenues were insufficient to serve all expenses and debts. Attorneys for Fu and Zeng claim that the defendants bought the jewelry in New York with business funds that were earmarked for furniture for one of the real estate ventures.
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In response to a series of items in the plaintiff's complaint, the Special Administrator collect several hundred thousand dollars worth of jewelry from Lu and Wu which is being held in a safety deposit box as joint assets of the business entities. A periodic report was distributed to the plaintiffs, defendants and the court summarizing financial matters and other key issues. In October of 2016 the court appointed a certified public account to serve as Special Administrator to monitor and safeguard assets, while Lu continued to operate the restaurants.įoreclosure and financial collapseThe Special Administrator was tasked by the court to monitor all business activities, including cash flow and operation of the two restaurants. The debt and mortgages were of particular concern because Lu and Wu allegedly promised to contribute their own funds to the businesses.Īt the same time the plaintiffs said they were not receiving any income from the operations, they claimed the defendants had been taking money themselves while running up massive debt in the form of two multi-million dollar mortgages, mechanic's liens, unpaid taxes and all sorts of other unpaid bills. In June of 2016 Fu and Zeng filed suit.Īlthough the new location did ultimately open, Fu and Zeng claimed they were not getting their share of the profits generated by the restaurants.Īnd they claimed that Lu and Wu, without their knowledge or permission, placed heavy mortgages and other debt on the properties secured by the jointly owned real estate and assets. The first Fuze opened at 6506 NW Expressway in May of 2015 and immediately drew big business.īut construction of the second location on NW 142nd just east of Pennsylvania Avenue dragged on with long periods of inaction. Xian Fu and Haobo Zeng contributed almost $4 million over the last several years in exchange for 45% of the two restaurants and a third each of the real estate venture. The couple solicited investment funds from two residents of Shenzhen, China. In March of this year a tax lien was filed against Bing in conjunction with a local furniture business.Ĭhinese investors provide millionsBeginning in 2012, Bing and Wu formed three legal entities for the purpose of opening the Fuze Buffet locations and establishing a real estate investment company. Throughout subsequent years, Lu continued to incur tax liens from the Oklahoma Tax Commission for various businesses including Taste of China.
Prison records show Bing was released from incarceration August 15, 2001. In 2000, Lu and a business partner were convicted of various crimes including harboring and abetting illegal aliens, who allegedly worked in near sweat-shop style conditions while only receiving $100-$200 per week for 70 to 80 hours of work.Īfter pleading guilty to associated crimes and tax fraud, Lu was sentenced to a year and a day in federal prison. Western and has done so since the 1990's. Lu also owns and operates Taste of China buffet at 7435 S. Local owner has criminal history multiple tax issuesThe two Fuze Buffets are managed by Bing Lu and his wife Shu Wu.
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