A California woman is taking legal action against her brother and nephew, accusing them of fraudulent asset transfers to evade a $21 million judgment. On September 15, 2025, Sophie Shen filed a complaint in the Superior Court of California, County of Santa Clara, against Weiping Xia and his son Jonathan L. Xia. Shen claims that her brother has been transferring assets to his son to avoid paying a court-ordered judgment.
The case traces back to 2003 when Shen invested in her brother’s startup company, Western Water Corporation (WWC), contributing 69% of the initial capital with the promise of receiving 50% shares. However, this was later reduced to 45%. In 2017, when Xia sold WWC for approximately $100 million, he allegedly refused to give Shen her share of the proceeds. This led Shen to sue Xia on April 14, 2018. Although they initially settled with Xia promising $10 million to Shen, he failed to honor this agreement, prompting her to refile the case on December 30, 2019.
The lawsuit expanded as Shen also pursued claims against Zhe Li—Xia’s nephew—and Alpheus Management Ltd., a holding company controlled by Xia through Zhe Li. These cases were consolidated and culminated in a jury trial from October to November 2022. The jury ruled in favor of Shen, awarding her $21 million on January 6, 2023. Despite this ruling and subsequent default judgments against Zhe Li and Alpheus Management Ltd., Xia has not paid any portion of the judgment.
Shen alleges that Xia has been concealing his assets globally under various entities and recently discovered through a private investigator that Jonathan maintains at least 22 bank accounts worldwide with an aggregate balance exceeding $40 million. Given Jonathan’s status as a college student with no apparent means or sophistication to amass such wealth independently, Shen believes these funds originated from Xia as part of an effort to defraud her.
The complaint outlines two causes of action: actual fraud and constructive fraud under the California Uniform Voidable Transactions Act (UVTA). It argues that the transfers were made with intent to hinder or defraud Shen without receiving reasonably equivalent value in return and at times when Xia was insolvent or rendered insolvent by these transfers.
Shen seeks several forms of relief from the court: declaring the transfers voidable under relevant civil codes; avoiding these transfers as necessary to satisfy her judgment; enjoining Jonathan and other defendants from further transferring or concealing assets; appointing a receiver over transferred assets if needed; entering judgment that allows execution against transferred funds; covering costs incurred during litigation; and any additional relief deemed appropriate by the court.
Representing Sophie Shen is attorney J. James Li from LiLaw Inc., while details about defense attorneys remain undisclosed. The case is being reviewed under Case No. 25CV475176 by Judge M. Suarez at Santa Clara Superior Court.
Source: 25CV475176_Sophie_Shen_v_Weiping_Xia_Complaint_County_of_Santa_Clara_California.pdf
