(Yicai Global) Dec. 26 -- China's securities watchdog has summoned Jia Yueting, founder of debt-laden tech and entertainment conglomerate LeEco, back from the US.

Jia was ordered to return before Dec. 31 to fulfill his obligations as the firm's actual controller, help it solve problems and handle risks, and protect investors' rights, according to a notice released yesterday by the China Securities Regulatory Commission's Beijing branch.

Jia resigned as chairman of LeEco's listed arm, Leshi Internet Information and Technology Corp. [SHE:300104], in July to focus on its US-based electric vehicle unit Faraday & Future Inc. LeEco defaulted on loan repayments after the Beijing-based company's rapid expansion led to a cash crunch last year, sending its shares plunging.

"Regulators can't do anything if Jia doesn't come back as the order is not enforceable," Xu Feng, a senior partner at Trend Law Firm, told NetEase Finance. "They may only add him to a blacklist of debt defaulters in the capital markets."
Jia's name was added to a national list of defaulters on Dec. 11 after a Beijing court ruled that he owes Ping An Securities about CNY480 million (USD73.4 million). Many believe his real reason for heading to the US was to escape LeEco's debt crisis, which has still not been properly addressed.

"Only penalties can be enforced," Trend Law Firm's Xu said. "But penalties are unlikely. Many controlling shareholders, directors, supervisors and executives who failed to deliver on their promises were never punished. I hope such empty promises can be defined as false statements and be subject to punishment in the revised securities law."
Jia yesterday posted a photo of six cars and employees wearing festive hats in front of Faraday & Future's office building with the caption, "Merry Christmas all FFer!"