(Yicai Global) Dec. 17 -- A US court has temporarily frozen Chief Executive Jia Yueting's stake in electric vehicle startup Faraday Future and placed a restraining order on a luxury mansion he owns in California, according to recent court documents.

The action results from a lawsuit Shanghai Lan Cai Asset Management filed with a federal court in California. The company claims Jia has failed to repay a CNY50 million (USD7.2 million) loan extended to another of his firms, LeSports, held by Beijing-based Leshi Internet Information and Technology. Lan Cai is seeking about USD11 million, including interest, in restitution.

In hopes of recovering the debt, Lan Cai asked the court to freeze Jia's 33 percent stake in Faraday Future and file a protective order on the mansion, which he owns through a shell company. Lawyers recently valued Jia's stake in Faraday Future at USD1.48 billion. His real estate, on which the restraining order is valid, is worth USD20 million.

At least three other Chinese creditors have launched litigation against Jia in the US, according to public information, with one of them accusing him of setting up "hundreds of shell companies" to avoid his liabilities.

So far, neither Jia nor Faraday Future has responded to these accusations and litigations.

Lan Cai said it had taken its case to a Chinese court and won but Jia, who has been living in the US, has not fulfilled the obligations stated in the judgment. The company therefore decided to take Jia's case to the US, requesting judges there to approve the verdict handed down in China.

Lan Cai filed suit in the US last week, stating that Jia has an poor record when it comes to paying off creditors even though reports claim he is wealthy, an insider, privy to court documents, told Beijing Youth Daily. The company voiced fears that Jia would transfer his Faraday Future equity and sever ties to the mansions' ownership to prevent them from being frozen, something he has done before.

"We have every reason to believe that Jia can and will take measures to ensure that the assets under the court's jurisdiction go beyond the reach of law enforcement," the asset management company said.

Lan Cai has received a quick response from the court on its request so far, which means it will probably grant approval to the judgment passed by the Chinese court, insiders believe.

LeSports borrowed CNY50 million from Lan Cai in December 2016, and agreed to repay the principal within 12 months, according to media reports. Jia and Leshi Holdings, also known as LeEco, as the guarantors, should bear joint liability.

Editor: Bivash Mukherjee