Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-05564/USCOURTS-cand-3_06-cv-05564-2/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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Case No. 

LEGAL_US_W # 54951694.4 

-1- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

RONALD M. OSTER (SB# 57954) ronaldoster@paulhastings.com DENNIS S. ELLIS (SB# 178196) dennisellis@paulhastings.com JOSHUA G. HAMILTON (SB# 199610) joshuahamilton@paulhastings.com MIGUEL A. SANQUI (SB# 217460) miguelsanqui@paulhastings.com PAUL, HASTINGS, JANOFSKY & WALKER LLP 

515 South Flower Street 

Twenty-Fifth Floor 

Los Angeles, CA 90071-2228 

Telephone: (213) 683-6000 

Facsimile: (213) 627-0705 

Attorneys for Plaintiff 

NEW WORLD TMT LIMITED 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

NEW WORLD TMT LIMITED, a 

Cayman Islands corporation, 

Plaintiff, 

vs. 

INTELLAMBDA SYSTEMS, INC., 

a Delaware corporation; 

WELLTIME INDUSTRIES, LTD., a 

British Virgin Islands Company, and 

JIANPING “TONY” QU, an 

individual, 

Defendants. 

CASE NO. C06-05564 

[PROPOSED] LETTER OF 

REQUEST REGARDING LIU XIU 

QING 

Case 3:06-cv-05564-SI Document 21 Filed 11/29/2006 Page 1 of 17
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Case No. 

LEGAL_US_W # 54951694.4 

-1- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

REQUEST FOR INTERNATIONAL JUDICIAL ASSISTANCE PURSUANT 

TO THE HAGUE CONVENTION OF 18 MARCH 1970 ON THE TAKING 

OF EVIDENCE ABROAD IN CIVIL OR COMMERCIAL MATTERS 

1. This request is being made by the United States District Court, 

Northern District of California, the Honorable Susan Illston presiding. The request 

relates to an action pending in the United States District Court, Northern District of 

California, entitled New World TMT Limited v. Intellambda Systems, Inc., et al., 

Case No. C06-05564 (the “Action”). 

2. This request is made to the Chief Secretary for Administration 

of Hong Kong SAR, Central Government Offices, Lower Albert Road, Hong Kong; 

Telephone: (011) (852) 2810-2954; Facsimile: (011) (852) 2877-0802 (the “Chief 

Secretary”). 

3. The executed request should be copied to the attorneys 

representing Plaintiff New World TMT Limited (“New World”) at the following 

addresses: 

Mohan Datwani, Esq. 

Robert San Pe, Esq. 

Paul, Hastings, Janofsky & Walker 

22/F Bank of China Tower 

1 Garden Road 

Hong Kong 

Telephone: (852) 2867-9988 

Facsimile: (852) 2147-3522 

– and – 

Dennis S. Ellis, Esq. 

Paul, Hastings, Janofsky & Walker LLP 

515 South Flower Street 

Twenty-Fifth Floor 

Los Angeles, CA 90071-2228 

Telephone: (011) (213) 683-6000 

Facsimile: (011) (213) 627-0705 

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Case No. 

LEGAL_US_W # 54951694.4 

-2- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

4. In conformity with Article 3 of the Hague Convention on the 

Taking of Evidence Abroad in Civil or Commercial Matters of March 18, 1970 (the 

“Hague Evidence Convention”), the requesting judicial authority is the United 

States District Court, Northern District of California, the Honorable Susan Illston 

presiding, 450 Golden Gate Ave., Department 10, San Francisco, California 94102, 

United States of America (the “Requesting Authority”). The request for execution 

is made to the Chief Secretary. 

5. For the purposes of justice and the proceedings in the Action, 

and for use at the trial of the Action, the United States District Court, Northern 

District of California, hereby requests the assistance of the Chief Secretary to cause 

testimony to be obtained from, and documents to be produced by, a responsible 

person or officer having custody of the said documents (the “Witness”) of the Hang 

Seng Bank Limited (“Hang Seng”), whose registered office is situated at 83 Des 

Voeux Road Central, Hong Kong. 

6. The plaintiff in this Action is New World, a company organized 

under the laws of the Cayman Islands with its principal place of business in Hong 

Kong, China. 

7. The defendants in this Action are Intellambda Systems, Inc. 

(“Intellambda”), Welltime Industries, Ltd. (“Welltime”), and Jianping “Tony” Qu 

(collectively referred to as the “Defendants”). 

8. Intellambda is a Delaware company with its principal place of 

business in Fremont, California, United States. 

9. Intellambda can be contacted through its counsel at the 

following address: 

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Case No. 

LEGAL_US_W # 54951694.4 

-3- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

Steven Guggenheim, Esq. 

Wilson Sonsini Goodrich & Rosati 

650 Page Mill Road 

Palo Alto, CA 94304 

Phone: 650-493-9300 

Fax: 650-493-6811 

10. Welltime is a British Virgin Islands Company. Welltime has not 

appeared in this action. New World contends that Welltime is a sham corporation 

with no legitimate business operations and New World is not aware of any contact 

information for Welltime. 

11. Tony Qu is an individual who resides in San Jose, California, 

United States. At all relevant times, Tony Qu served as the Chief Executive Officer 

and President of Intellambda. New World served Tony Qu on October 31, 2006, 

but he has yet to appear in the Action. New World is informed and believes that he 

is currently in Osaka, Japan based on a declaration submitted by Tony Qu in the 

“Santa Clara Action.”1

 (Request for Judicial Notice in Support of New World TMT 

Limited’s Ex Parte Application for Issuance of Stipulated Letters of Request 

(“RJN”), submitted concurrently herewith, Ex. 1). New World is not aware of any 

contact information for Tony Qu in Japan. 

12. New World contends that Welltime and Intellambda are both the 

alter ego of Tony Qu. 

I. NATURE OF THE PROCEEDINGS

13. The Action arises out of a substantial purchase of Intellambda 

stock by New World, a large Hong Kong conglomerate from Welltime. As further 

described below, New World alleges that, in order to induce New World to 

purchase the Intellambda stock from Welltime at a substantial premium above what 

 

1

 The “Santa Clara Action” shall refer to the action filed by New World against Qu and nine other 

companies run by Qu, including PrediWave Corporation (“PrediWave”), for, inter alia, breach of 

contract and fraud, which action is currently pending in the Santa Clara Superior Court, the 

Honorable Jack Komar presiding (Case No. 104-CV-020369). 

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Case No. 

LEGAL_US_W # 54951694.4 

-4- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

Welltime allegedly paid, Tony Qu made certain material misrepresentations and 

omissions regarding the nature of Welltime as an independent third party company, 

when in fact it was the alter ego of Intellambda and Tony Qu. 

14. The allegations of New World in this case are set forth in detail 

in New World’s Complaint for Damages for: (1) Fraud in Violation of the 

Securities and Exchange Act of 1934(10b-5); (2) Fraud in Violation of Section 

7303 of the Delaware Securities Act; (3) Common Law Fraud – Affirmative 

Misrepresentations; (4) Common Law Fraud – Material Omissions; and (5) 

Negligent Misrepresentation (the “Complaint”). A true and correct copy of New 

World’s Complaint is attached as Exhibit I to the Declaration of Joshua G. 

Hamilton in Support of Plaintiff New World TMT Limited’s Motion for Issuance of 

Stipulated Letter of Request to Permit Discovery of Third-Party Witness in Hong 

Kong (“Hamilton Decl.”). 

15. The underlying facts, as alleged by New World in its Complaint, 

are as follows: 

(a) Despite the representations and concealments by Tony 

Qu, New World became aware in or around January, 2006 that Welltime is actually 

a sham corporation. At all relevant times, Welltime lacked any separate existence 

from Intellambda or Tony Qu, and failed to follow proper formalities. Moreover, 

Tony Qu established Welltime in order to defraud potential shareholders of 

Intellambda, and operated Welltime as his alter ego. 

(b) Welltime is one of a number of sham corporations created 

by Tony Qu in order to defraud New World. In fact, through discovery in a 

separate litigation, the Santa Clara Action, New World first became aware that in or 

around September, 2000, Tony Qu created Modern Office Technology Limited 

(“MOT”), a shell corporation and the alter ego of Tony Qu. Tony Qu appointed his 

mother, Liu Xiu Qing, as the token President of MOT. Tony Qu used MOT as an 

intermediary to loot money from another company of which he is the majority 

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Case No. 

LEGAL_US_W # 54951694.4 

-5- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

shareholder and Chief Executive Officer, PrediWave, at the expense of New World. 

For example, PrediWave and MOT entered into an agreement whereby PrediWave 

agreed to purchase 3,000,000 memory modules from MOT over a two year period. 

MOT thereafter entered into a series of purchase orders with, among other 

companies, Techno Linc Corporation (“Techno Linc”) pursuant to each of which 

MOT agreed to purchase memory modules. New World contends that MOT then 

re-sold the memory modules to PrediWave at incredible mark-ups, making millions 

of dollars from the sales; PrediWave paid the marked-up purchase prices to MOT, 

and represented to New World that the price of the memory modules it purchased 

was the fair market price; and PrediWave then sold the memory modules to New 

World at a marked-up price. 

(c) Tony Qu took affirmative steps to conceal the fact that 

MOT, Welltime, Intellambda, and Tony Qu were all controlled by and were the 

alter ego of Tony Qu. However, demonstrating that MOT, Welltime, Intellambda 

and Tony Qu are all controlled by and the alter ego of Tony Qu, MOT transferred 

significant funds to Welltime from the MOT bank account at HSBC bank in Hong 

Kong. 

(d) Intellambda and Tony Qu conspired with other people and 

entities to defraud New World in connection with the purchase of Intellambda 

stock. Tony Qu contends that MOT is operated by friends of his brother, Jianli Qu. 

In addition, Tony Qu’s mother, Liu Xiu Qing, is the President of MOT. Wei Wang, 

Tony Qu’s former wife, is connected with MOT and Welltime. MOT, Welltime, 

Jianli Qu, Liu Xiu Qing, Wei Wang and other yet to be identified parties took 

affirmative acts to further the conspiracy to defraud New World in connection with 

the purchase of New World stock. 

(e) Tony Qu was born in China and lived in Shanghai until he 

was an adult. While in China, Tony Qu worked in the real estate business for a 

company called Dazheng. In addition to real estate, Dazheng had numerous other 

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Case No. 

LEGAL_US_W # 54951694.4 

-6- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

businesses, including a technology business. However, Tony Qu’s background was 

in marketing and real estate, and he has no formal technology training. In or around 

1995, Tony Qu traveled to the United States for Dazheng in order to establish its 

United States business. New World is informed and believes, and based thereon 

alleges, that, soon after he arrived in the United States through the sponsorship of 

Dazheng, he decided to abandon Dazheng to start his own company, V-Net 

Microsystems, Inc. 

(f) Tony Qu formed Intellambda in 2003. Tony Qu 

represented to New World that Khoi Hoang, an engineer who Tony Qu represented 

was the inventor of PrediWave’s technology and was granted two patents for 

PrediWave’s technology, had developed a revolutionary optical transport and 

switching platform. 

(g) Between January 1, 2003 and May 28, 2003, in order to 

induce New World to invest in Intellambda, Tony Qu, in his capacity as Chief 

Executive Officer and President of Intellambda, made numerous material false 

and/or misleading representations to Dr. Cheng Kar-Shun, Henry (“Cheng”), the 

Managing Director of New World Development Company, Ltd., and Douglas Chan 

(“Chan”), a former Managing Director of New World. Those misrepresentations 

included, but are not limited to, (i) that Intellambda had completed optical router 

products which would be brought to market within a year, that (ii) Intellambda had 

entered into discussions with certain “top-tier” telecom companies and cable 

multiple system operators to purchase and use Intellambda’s products and 

technology. Those companies identified by Tony Qu include Comcast Corporation 

(“Comcast”), Verizon Communications, Inc. (“Verizon”), Time Warner Cable 

(“Time Warner”), MCI, Inc. (“MCI”), Qwest Communications International, Inc. 

(“Qwest”), SBC Communications, Inc. (“SBC”), AT&T Corp. (“AT&T”), and 

WilTel Communications Group, Inc. (“WilTel”), and (3) that Intellambda’s 

revenues in 2004 would be at least $500,000,000. 

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Case No. 

LEGAL_US_W # 54951694.4 

-7- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

(h) In or around May 2003, but prior to May 28, 2003, Tony 

Qu stated to New World representatives, including, but not limited to, Cheng and 

Chan, that in order for New World to invest in Intellambda, it would have to 

acquire shares in Intellambda from a purported third party, Welltime. Tony Qu and 

other representatives of Defendants stated that Welltime previously acquired from 

Intellambda 15 million shares (a 30% interest in Intellambda) in January, 2003 for 

$15,000,000. Tony Qu and other representatives of Defendants further stated that 

Welltime was only willing to sell 10,000,000 of its shares (a 20% interest in 

Intellambda), at a total cost of $90,000,000. Tony Qu represented to New World 

through Cheng and Chan, that Welltime was a separate distinct entity from 

Intellambda, and a company which he was not involved in and had no control over. 

(i) In reliance on Tony Qu’s representations, New World, as 

the transferee, entered into a May 28, 2003 Stock Transfer Agreement the (“STA”) 

with Welltime, as transferor, and Intellambda. Pursuant to the STA, Welltime 

agreed to transfer to New World, and New World agreed to purchase from 

Welltime, 10,000,000 shares of Series A Preferred Shares in Intellambda, for the 

total purchase price of $97,000,000. 

(j) Under the terms of the STA, New World received the 

right to appoint a person to Intellambda’s board of directors, provided that New 

World owned at least 5,000,000 Series A Preferred Shares of Intellambda. 

A. New World Invests $97 Million in Intellambda.

(k) Pursuant to the Agreement, on June 10, 2003, New World 

placed $25,000,000 in escrow as partial payment for the shares pursuant to the 

STA. The remaining $72,000,000 was due on January 30, 2004, subject to 

Intellambda providing additional information to New World and Cheng so that they 

could perform due diligence on Intellambda. 

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Case No. 

LEGAL_US_W # 54951694.4 

-8- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

(l) Prior to the closing of the transfer and purchase of the 

Series A Preferred Stock pursuant to the STA, on or about January 28, 2004, New 

World representatives attended further technical briefings on Intellambda’s 

technology, during which Intellambda, through Tony Qu and others, repeated its 

promises described in paragraph 15(g), above. 

(m) Based on the representations of Tony Qu and others 

employees or representatives of Intellambda, on or about January 30, 2004, New 

World and Cheng paid the remaining $72,000,000, and the STA was consummated. 

B. After the Initial Investment, Tony Qu Continues to Make False 

Representations About Intellambda.

(n) After the closing of the transfer and purchase of the Series 

A Preferred Stock in Intellambda pursuant to the STA, Defendants, through Tony 

Qu, made additional material representations to New World, through Cheng and 

Chan, regarding the status of the development of Intellambda’s technology, 

Intellambda’s finances, and Intellambda’s business prospects, as described in 

paragraph 15(g), above. Moreover, Tony Qu represented that Intellambda had 

meetings with Comcast, Verizon, Time Warner, MCI, Inc., Qwest, SBC, AT&T, 

and WilTel, and that representatives of each of those companies told him that they 

were impressed with Intellambda’s technology, and interested in utilizing it for 

their companies. Tony Qu also stated that a deal with each company would be 

worth hundreds of millions of dollars to Intellambda. 

(o) For the first time in or around late September, 2004, and 

continuing into 2005, Defendants informed Plaintiff that Intellambda was 

experiencing financial difficulties, and that Intellambda would require substantial 

additional investments in order to seize the potential business opportunities with 

“top-tier” companies in North America, including, but not limited to, Comcast, 

Verizon, Time Warner, MCI, Qwest, SBC, AT&T, and WilTel. Specifically, on 

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Case No. 

LEGAL_US_W # 54951694.4 

-9- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

September 14, 2004, Tony Qu stated to Cheng that Intellambda was underfunded, 

and would require an additional $300 million for research and development in order 

to have a commercially ready product. In December 2004, Cheng Yu-Tung, the 

founder of the New World Group, of which New World was part, wrote to Tony Qu 

that he was “very concerned about the project” and requested additional 

information. When Tony Qu failed to provide this information, in June 2005, New 

World announced that it took a provision of HK$377 million (approximately 

US$68,333,333.33) against the investment. This was the first time New World had 

reason to believe that Tony Qu’s representations concerning Intellambda were false. 

(p) Prior to New World’s investment in Intellambda, no 

representative of Intellambda ever disclosed to New World or Cheng that 

Intellambda was underfunded, or that Intellambda did not have sufficient resources 

in order to complete and obtain certification necessary for commercial deployment 

of any of its products, including its flagship product, the ILS640 DWDM Transport 

and Switching System. 

(q) The foregoing representations were false, in that 

Defendants never had legitimate business opportunities with the aforementioned 

companies. Moreover, Defendants intentionally omitted this critical information in 

order to induce New World and Cheng to invest $97,000,000 in Intellambda. 

(r) In or about April, 2005, Plaintiff, through Cheng, asked 

Defendants for evidence confirming their purported communications with the “toptier” companies with which Defendants previously represented that they had 

discussions and meetings, including, but not limited to, Comcast, Verizon, Time 

Warner, MCI, Qwest, SBC, AT&T, and WilTel. Plaintiff further requested that 

Defendants provide a full set of Intellambda’s financial statements, as Intellambda 

was required to do pursuant to the STA. Defendants have not complied with 

Plaintiff’s requests. 

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Case No. 

LEGAL_US_W # 54951694.4 

-10- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

(s) Tony Qu’s representation that Welltime paid $15,000,000 

for shares in Intellambda omitted material information making said statement false 

and misleading. Tony Qu failed to disclose that Welltime received the funds used 

to purchase shares in Intellambda from MOT, a company created by Tony Qu in 

order to steal money from New World. Therefore, New World essentially paid 

twice for the same stock. 

(t) In addition, Tony Qu created a false market for 

Intellambda shares by using Welltime as a conduit to sell the shares. Because 

Welltime is the alter ego of Tony Qu and a co-conspirator of Tony Qu and 

Intellambda, Tony Qu misrepresented to New World that the price of Intellambda 

shares was marked up by at least $80,000,000. In reliance on this 

misrepresentation, Plaintiff paid $97,000,000 for Intellambda stock where no real 

market for the shares existed. 

(u) New World contends that the alleged improper and 

unlawful nature of the memory module transactions is highlighted by facts and 

documents uncovered by New World, including evidence that MOT was a mere 

“dummy” or nominee company, or an alter ego, through which PrediWave, and/or 

Tony Qu, or alternatively a co-conspirator with Tony Qu and PrediWave, 

artificially inflated the prices it charged New World for the memory modules. 

(v) Due to acts by Tony Qu to cover up the fraud, Plaintiff 

did not discover until around June 2005 that Tony Qu had used Intellambda in order 

to perpetrate fraud upon Plaintiff. 

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Case No. 

LEGAL_US_W # 54951694.4 

-11- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

III. EVENTS IN THE SANTA CLARA ACTION THAT ARE RELEVANT 

TO NEW WORLD’S ALLEGATIONS IN THIS ACTION 

REGARDING THE NATURE OF MOT AND WELLTIME.

16. The following are the contentions of New World based on the 

allegations and proceedings in the Santa Clara Action, as well as on certain events 

and facts uncovered in the Santa Clara Action: 

(a) Despite evidence of a connection, PrediWave principals 

denied any knowledge about the nature of MOT. Specifically, in the Santa Clara 

Action, Tony Qu, his former wife, his brother, and various other insiders of the 

companies vehemently denied the foregoing allegations regarding the nature of 

MOT. For example, Wei Wang, Tony Qu’s former wife and a purported 

PrediWave board member, testified that her only knowledge about MOT was that it 

was a company related to memory chips. (Hamilton Decl., Ex. A at 91:1-19). 

Ms. Wang denied having any knowledge as to whether she had ever been a 

signatory on MOT’s bank account. (Id. at 91:20-96:6.) She was absolutely certain 

that she was not currently a signatory on the MOT account and that she had not 

made withdrawals on the account. (Id. at 94:7-10, 95:1-3, 96:1-3). 

(b) When questioned at his deposition, Tony Qu originally 

answered “I don’t know” in response to the question “Who runs [MOT]?” 

(Hamilton Decl., Ex. B at 693:8-14.) On March 3, 2006, Tony Qu then testified 

that he “misunderstood” the question at his prior deposition, and that “Rob Lee and 

James Lee” ran the company, although he still did not know who owned MOT. 

(Hamilton Decl., Ex. C at 578:23-580:4). 

(c) Tony Qu’s brother, Jianli Qu testified at his deposition 

that MOT belongs to Li Gui and Li Ming, two schoolmates of his from Shanghai. 

(Hamilton Decl., Ex. D at 141:1-12.)2

 Jianli Qu indicated that he put MOT in 

 

2

 Presumably, Li Gui and Li Ming are the same imaginary individuals as James Lee and Robert Lee. 

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Case No. 

LEGAL_US_W # 54951694.4 

-12- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

contact with PrediWave. (Id. at 141:22-142:1.) 

(d) Wen Jun Shi, another purported PrediWave board 

member, testified that she knew “that they have a person named Robert Lee. And 

also there’s a person by the name of James Lee. There’s also another one called 

Liu Xiu Qing.” (Hamilton Decl., Ex. E at 55:19-25). Liu Xiu Qing is Tony Qu’s 

mother’s name. (Hamilton Decl., Ex. B at 564:16-17). Wen Jun Shi testified that 

she has met both Tony Qu’s mother and the Liu Xiu Qing, who works at MOT, and 

that they are not the same person. (Hamilton Decl., Ex. F at 64:19-67:6.) 

A. A LETTER OF REQUEST IS ISSUED IN THE SANTA CLARA ACTION.

(e) New World obtained the issuance of a letter of request in 

the Santa Clara Action in order to obtain MOT’s bank records from HSBC to show 

that, in fact, there was a connection between MOT and Tony Qu.3

 (RJN, Ex. 2). 

(f) Despite the efforts of PrediWave and the efforts of the 

mystery “director” of MOT, on September 28, 2006, New World ultimately 

obtained bank documents regarding MOT’s account at HSBC in Hong Kong. 

(Hamilton Decl., ¶ 8). 

(g) The following events occurred after New World obtained 

the documents regarding MOT from HSBC: 

(i) Tony Qu filed a declaration in the Santa Clara 

Action admitting that his testimony and numerous court filings included 

testimony and statements regarding the MOT that were “untrue.” (RJN, Ex. 3 

(Ex. 1 thereto). The declaration also indicated that Tony Qu was no longer in the 

United States and was in Japan. (Id.) 

 

3

 The letter of request issued by Judge Komar to HSBC for the production of documents regarding 

the bank accounts of MOT held at HSBC resulted in proceedings in the High Court of the Hong 

Kong Special Administrative Region Court of First Instance, Miscellaneous Proceedings No. 421 of 

2006. 

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-13- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

(ii) Shortly thereafter, counsel for Tony Qu submitted a 

“Corrective Affirmation” in the Hong Kong letter of request proceedings 

withdrawing assertions in previously filed affirmations regarding the purported 

independence of MOT. (Hamilton Decl., Ex. F (Ex. AS-9 thereto). Tony Qu has 

since then violated a court order in the Santa Clara Action requiring him to return to 

the United States for a deposition (RJN, Ex. 1)4

 and transferred over $40 million 

out of his account in the United States into an account in Japan. (Hamilton Decl., 

¶¶ 2, 11 & Ex. H). 

III. THE EVIDENCE TO BE OBTAINED

17. The evidence to be obtained is the requested documents from 

Hang Seng and the testimony from the Witness authenticating those documents, 

which evidence is directly relevant to New World’s fraud claims in the Complaint, 

and necessary for use at trial.5

18. The documents requested to be produced by Hang Seng and 

authenticated by the Witness are: (1) the following documents in the possession 

custody or control of Hang Seng relating to any account maintained by Liu Xiu 

Qing with Hang Seng for the period between October, 2002 through November, 

2006, including, but not limited to, account number 593-340706-838; AND (2) the 

following documents in the possession custody or control of Hang Seng relating to 

any account of Liu Xiu Qing, for the period between May, 2001 and November, 

 

4

 Tony Qu was served on October 31, 2006 with the Complaint and Summons in this action 

pursuant to Rule 4(e)(1) of the Federal Rules of Civil Procedure and Section 415.20 of the California 

Civil Procedure Code, permitting for substitute service on Tony Qu by leaving copies of said 

documents at his place of business. Specifically, the Complaint and Summons were left with a 

responsible person at PrediWave, for which Tony Qu is the CEO and President. Notably, Latham & 

Watkins, Tony Qu’s counsel in the Santa Clara Action, recently explained to the court in that case 

that they maintain contact with Tony Qu through Vincent Lin at PrediWave. (Hamilton Decl., ¶ 13). 

Mr. Lin is the Vice-President of Operations and corporate counsel of PrediWave and Intellambda. 

Mr. Lin has actual knowledge of this litigation, as evidenced by a September 19, 2006 letter from Mr. 

Lin to New World’s counsel regarding this action. (Hamilton Decl., Ex. J). 

5

 The Requesting Authority has scheduled an Initial Case Management Conference for December 15. 

2006, at which time the Court may set the trial date for the Action. New World intends to request 

that the trial be set to commence in the fall of 2007. 

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-14- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

2006, into which monies were deposited from MOT’s HSBC account (account 

number 593-340706-838):

• Application for account opening and account opening 

documents.

• Signature cards.

• Bank mandate documents.

• Agreements relating to the said accounts.

• Board minutes and written resolutions.

• Bank statements.

• Slips and bank documents for the withdrawal of funds.

• Cheques (including cancelled cheques).

• Orders for and other bank documents relating to 

telegraphic or wire transfers.

• Instructions, memoranda and correspondence relating to 

the deposit, withdrawal and transfer of funds.

19. The Witness will be required to produce and give testimony 

authenticating the said documents. New World requires such evidence in order to 

establish its claims for fraud against Defendants, and offer evidence regarding: (1) 

misrepresentations (false representation, concealment, or nondisclosure) concerning 

the nature of MOT and Welltime, and, specifically whether Welltime and MOT are 

connected to, and controlled by, Tony Qu and/or his family, including his mother, 

Liu Xiu Qing; (2) Defendants’ knowledge of the falsity of such representations 

made to New World; (3) Defendants’ intent to induce New World’s reliance on 

such representations; (4) the justifiable reliance of New World on such 

representations; and (5) the damage suffered by New World as a result.

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-15- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

IV. PROCEDURES TO BE FOLLOWED

20. Pursuant to California law, New World’s request to secure the 

requested documents from Hang Seng and the testimony from the Witness 

authenticating those documents, is a proper and necessary measure because it 

directly relates to the proof of allegations made by New World herein and is 

necessary for a fair resolution of the pending action. In the interest of justice, we 

therefore request that you permit New World to take the oral evidence of the 

Witness and cause the Witness, by the proper and usual means, to appear before 

your Court, or some other competent and authorized officer appointed by you for 

that purpose, at a time and place to be appointed by you, then and there to answer 

New World’s questions under oath and produce the documents requested by New 

World herein. 

21. The Requesting Authority also requests that the oral testimony 

of the Witness be recorded verbatim and that the transcripts be authenticated in 

accordance with your procedures. The Requesting Authority requests that these 

special methods of procedure be followed. The testimony of the Witness is to be 

obtained as testimony for use as evidence at trial. The documents requested to be 

produced are intended to be tendered as admissible evidence at trial. 

22. The Requesting Authority further requests that the executed 

letter of request, together with the documents produced and the authenticated 

transcripts, be returned in a sealed envelope marked “Executed Letter of Request” 

to the individuals identified in Paragraph 3, above. 

23. The Requesting Authority further requests that the notification 

of the time and place for execution of the letter of request be given to the 

individuals identified in paragraph 3, above. 

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-16- [PROPOSED] LETTER OF REQUEST 

REGARDING LIU XIU QING 

24. The foregoing is based on the allegations and contentions of 

New World, which the Requesting Authority believes establish that the requested 

evidence is relevant to the trial of this Action. In issuing this Letter of Request, the 

Requesting Authority does not hereby endorse said allegations and contentions as 

established facts. 

Witness, the Honorable Susan Illston, Judge of the United States 

District Court, Northern District of California, this ____ day of November, 2006. 

Judge of the United States District Court, 

Northern District of California 

[SEAL] 

By: 

Clerk of the United States District Court, 

Northern District of California 

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30th

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

APPROVED

Judge Susan Illston

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