Zetta Jet trustee: Former director used company funds to buy yacht

By Caroline Salls

Pittsburgh, Oct. 30 – Zetta Jet USA, Inc. Chapter 7 trustee Jonathan D. King filed a lawsuit Monday to recover $3.17 million in value of the Dragon Pearl, a luxury yacht, which was allegedly improperly purchased by former managing director Geoffery Owen Cassidy with misappropriated funds, according to a filing with the U.S. Bankruptcy Court for the Central District of California.

The defendants named in the lawsuit include New Target Investments Ltd., Wu Kebo, Du Yan, Guoyue (Grace) Huang, Linkage Access Ltd., Misaki Go and John Doe Corp.

King said a Zetta Jet debtor’s funds were used to purchase the Dragon Pearl when “Wu colluded with Cassidy to transfer beneficial title to the Dragon Pearl to Wu’s nominee, Du, to the detriment of the creditors of the debtors’ estates.”

According to the lawsuit, the fraudulent conveyance of the yacht on Sept. 28, 2017 “was preceded by a series of complex and clearly lopsided transactions” that Cassidy caused the debtor to enter with Wu, Wu’s partner Fok Kin Nine Canning and New Target.

The trustee alleged in the lawsuit that Cassidy caused the Zetta Jet debtors to purchase Wu’s and Fok’s personal jet, which was paid for by $18.75 million in “block hours” that Fok, Wu and New Target could redeem for flight time on the debtors’ private luxury jet aircraft fleet.

After that transaction closed, King said Cassidy “was confronted by his co-owners and fellow board members for stealing millions of dollars from the debtors, including the debtors’ funds used by Cassidy to buy the Dragon Pearl.”

Cassidy was suspended and removed from the board, and Zetta Jet filed bankruptcy “due to severe liquidity constraints caused in large part by Cassidy’s misappropriation of funds and gross mismanagement,” the lawsuit said.

Zetta Jet is a Burbank, Calif.-based private aviation charter company. The company filed for bankruptcy on Sept. 15, 2017 under Chapter 11 case number 17-21386.

© 2015 Prospect News.
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