The founder of a Vancouver startup that is being sued by investors and accused of not paying its employees for months insisted on Friday that the company is not a “Ponzi scheme” and that everyone will be compensated soon.
Istuary Innovation Group founder Ethan Sun sent a letter via email to employees on Friday, five months after his company stopped paying them. Global News obtained a copy of the letter, which can be seen right here.
READ MORE: Employees at Vancouver tech startup say they haven’t been paid in months
Workers at the Vancouver tech startup contacted Global News last month, saying they hadn’t received a paycheque since May.
Founded in 2013, the offshore startup focused on software and technology development. It employed hundreds of workers in Vancouver, North America and China.
In his letter addressed to “Istuarians, investors and friends,” Sun apologized, saying he and his executive team have been “working around the clock to resolve current difficulties” and re-establish the company.
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“We are not a Ponzi scheme,” Sun wrote.
“We are a legitimate technology company that has accomplished tremendous amount of success in an extremely short period of time.”
Sun also said he did not “misappropriate any investor money” and that the company is not bankrupt, refuting claims made in a lawsuit filed by Vancouver-based investors.
READ MORE: Vancouver tech startup, Istuary, accused of mishandling documents
“I will candidly admit that we have had many issues and difficulties in dealing with the fast pace of growth in the past few years and we are not able to deal with every issue satisfactorily,” Sun wrote.
“For that, I am sorry.”
Sun revealed that he was writing from Beijing, where he continues to promote the company to investors.
Employees to be soon, Sun promises
Sun said he hopes all employees will be paid any monies owed within the next two weeks.
According to B.C.’s Employment Standards Branch, 122 former Istuary workers have filed complaints concerning their unpaid wages. An investigation is ongoing.
“Istuary recognizes its obligation to employees and regards the payment of missed salary and bonus as its highest priority,” Sun wrote.
The company has appointed Vincent Zhu to lead a “turn-around task force” with a mandate to “preserve and improve” the company’s core values.
“I know many of you have lost confidence, but please bear with us, we are close to our intended resolution and I ask that you please work with us to get across the finish line,” Sun wrote.
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