Xiu Xianj Kelly and Tuo Du sued over alleged hotel fraud

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

Three companies owned by Yuzhu Kang have brought proceedings seeking freezing orders against Xiu Xianj Kelly and her son, Tuo Du, over an alleged €1.85m fraud. The claims have been denied.

The proceedings were reported on 21 March 2024. Kang alleges that most of the sum relates to artworks and furniture transferred to the hotels by the defendants the previous year at grossly exaggerated values.

The companies bringing the proceedings are Xiu Lan Hotels Ltd, Xiu Lan Riverside Hotel Ltd and Xiu Lan Payroll and Management Services Ltd. The report said Kelly and Du had resigned from the three companies the previous month. Xiu Lan Hotels operates Fota Island Resort, while Xiu Lan Riverside Hotel trades as the Kingsley Hotel.

The new proceedings followed a settlement in an earlier ownership dispute. Kang had sued Kelly, Du and three companies in 2020, alleging a conspiracy to defraud him. Under the settlement, Kang was declared the sole owner of Xiu Lan Holdings, and Kelly and Du stepped down as directors. Kelly had maintained that she owned Fota Island Resort and that Kang’s name had been used as a front; the report said those claims had since been dropped.

This report covers an earlier stage of the case. Later developments are not reported here.