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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.

Bankruptcy Details

In its filing, Liu’s entity pegged the River Road site’s value at $45 million, with 1 to 49 creditors and assets and liabilities each ranging from $10 million to $50 million.

• East-West Funding tops the creditor list with a $31.2 million claim.

• Amy Hsiao Chen and others hold a $2.8 million judgment from a case involving stolen funds.

• Yuhe Wang is owed $800,000, part of a lawsuit that ballooned into a $1.6 million judgment and sparked Liu’s arrest warrant.

This isn’t East-West’s first entanglement on River Road. In June, it was listed as the largest creditor in another Chapter 11 filing tied to an $80 million movie theater site on the same street.

What’s Next

A settlement conference in Sheng Da’s fraud case is slated for Oct. 22. Meanwhile, East-West and other creditors are expected to challenge Liu’s bankruptcy strategy in court.

• Bankruptcy case: In re 575 River Road Edgewater LLC, Case No. 25-20056-VFP, U.S. Bankruptcy Court, District of New Jersey.

• Foreclosure case: East-West Funding LLC v. 575 River Road Edgewater LLC, Case No. SWC-F-010657-22, N.J. Superior Court, Bergen County.

• Fraud case: Sheng Da Xing Ye Investment LLC v. Fan Liu, pending in state court.

With 575 River Road filed for bankruptcy, the once-promising riverside property remains mired in litigation, with investors, lenders, and the courts now holding the fate of the contested site.