The saga of a Hudson River property that has been at the center of fraud allegations, investor lawsuits, and foreclosure battles took a dramatic turn this week when 575 River Road filed for bankruptcy, halting a sheriff’s sale scheduled for Friday.
A Last-Minute Chapter 11 Move
On Thursday, 575 River Road Edgewater LLC, led by Fen “Richard” Liu, entered Chapter 11 protection, declaring $67.3 million in debts. The filing came just one day before its vacant lot at 575 River Road, Edgewater, N.J. was to be auctioned.
The property has been in the crosshairs of East-West Funding LLC, tied to developer Fred Daibes, which sued in 2022 to foreclose on a $27 million mortgage issued to Liu the year prior.
Attorney Jason Shafron, representing East-West, said the filing was nothing more than a stalling tactic. “Bankruptcy is not meant for a single-asset entity that has no operations,” he remarked, noting that no payments have been made in three years.
Fraud Accusations and Investor Fallout
The bankruptcy filing is just one piece of Liu’s mounting legal troubles. In 2024, Sheng Da Xing Ye Investment LLC accused him of orchestrating a $19 million fraud scheme tied to the River Road property. Sheng Da claims Liu promised a partnership on a high-rise development overlooking Manhattan but secretly shifted ownership to his personal company, New Asia USA Holding LLC.
The investor alleges Liu fabricated plans, solicited millions more for “development expenses,” and concealed East-West’s foreclosure lawsuit until 2024. Sheng Da said Liu’s false assurances of joint ownership “came as a shock” when the truth surfaced during due diligence for a potential sale.
Other lawsuits in Bergen County paint a broader picture of alleged misconduct. Judges have already issued multimillion-dollar judgments against Liu, including an arrest warrant in September 2024 tied to loan defaults.
