By the AZFPI Board
This post was updated on 4/29/24 to reflect a correction on the EPA’s ECHO database.
A Look at the Players, Property & Regulators of Gold Paradise Peak Mine
This is a complicated story of high-stakes real estate with mineral rights investments, never-ending litigation, unresolved regulatory violations, and financial skullduggery. But singularly focusing on Gold Paradise Peak Inc.’s (GPPI) foreign ownership misses the bigger story of how this CEO and his company operate, and how they have hindered current and past efforts by regulatory agencies and the courts to hold them accountable. Given this CEO’s litigation track record in seven states across 13 years, there is no doubt how this story ends in Yavapai County. Time is of the essence to stop what is likely another chapter in GPPI’s incessant financial shell games, along with the almost certain environmental destruction of our beautiful Prescott National Forest and pollution of precious water resources. Here’s a look at the critical actors in our game of “Let’s Make a Mine Deal.”
(Map can be viewed at this link)
Behind Door #1 – Private property sales and mining claims on public property
Gold Paradise Peak, Inc. (GPPI) and other companies owned by CEO Songqiang Chen and/or his affiliates have acquired 411.12 acres of privately held land (with mineral rights) in the Senator Highway area from four different sellers.1 Chen and affiliates began acquiring these parcels in 2016, with the last recorded deed appearing in 2023. It is important to note that property owners have a right to sell property without checking a buyer’s history or background. The authors have not found any public information suggesting these private property sellers are currently involved with GPPI or its affiliates. GPPI does issue stock shares according to its filing with the Arizona Corporation Commission.2 It is also important to note however, private companies such as GPPI are not required to disclose shareholders unless certain thresholds are met under federal Security and Exchange Commission (SEC) law.3
In addition to mining its private land, GPPI has reportedly filed at least 40 mining claims on US Forest Service (public) land.4 Several US mining laws allow mining operations on public land, including the General Mining Law of 1872 and the Mining and Minerals Policy Act of 1970.4 To mine public land, GPPI must meet several specific requirements, including submission of a mining operations plan for approval by the USFS.5 In contrast, mining private land requires only GPPI’s compliance with mine safety and water quality control regulations and permitting.5 Unfortunately, as discussed in section #3 below, the company has repeatedly failed to comply with regulations.
Behind Door #2 – CEO Songqiang Chen, His Companies, and The Lawsuits
Lurking behind this door is the star of “Let’s Make a Mine Deal” Songqiang Chen. He is the CEO of Gold Paradise Peak Inc. Chen’s reported home address is in Foster City, California.6 In addition to GPPI in Arizona, Chen is CEO for at least 16 additional businesses incorporated in five states,7 including a Nevada and California version of Gold Paradise Peak, Inc. All of Chen’s known businesses involve minerals, mining, and exporting. Chen also operates through a network of affiliate businesses, where he has been reported to have a controlling interest.7 Not surprisingly, many of Chen’s businesses list the same officers and/or board of directors.8
Chen’s arrival in Prescott is disturbing given his seemingly magnetic attraction to unfavorable litigation. Between 2004 and 2017, seven of Chen’s businesses encountered significant legal troubles. In addition to 33 federal lawsuits and judgments for millions of dollars across seven states, it also contended with three suits in California.9 These cases involve complaints of fraud, breach of contract, and Chapter 11 Bankruptcy. Chen clearly knows his way around the legal system given the lengthy duration of cases and the alleged financial maneuvers to hide money from creditors as litigated by Chen’s bankruptcy liquidating trustee.10 Since his companies arrived in Arizona, the State of Arizona (through the ADEQ) has sued Chen and at least one of his other companies. On April 15, 2024, Chen and companies also added to their litigation repertoire a Notice of Intent to Sue by the Center for Biological Diversity.11
Behind Door #3 – Regulatory or Government Agencies Engaging with Chen and His Companies
Arizona Department of Environmental Quality (ADEQ). Court records show beginning in 2018, the Arizona Department of Environmental Quality (ADEQ) inspectors discovered GPPI engaged in numerous violations of Arizona’s water quality control laws on the Senator Mine and Sundance Mine properties. Further, GPPI employees at the sites admitted they conducted mining operations for almost two years prior without obtaining the required permits. The State Attorney General filed a lawsuit against GPPI and its sister company Sino Vantage Group in March, 201912 This lawsuit has continued across two different administrations (Mark Brnovich, Republican and Kris Mayes, Democrat) and remains unresolved.
Chen’s companies negotiated a deferred penalty from ADEQ by agreeing to take the actions required by ADEQ, including finalizing the construction of effluent discharge facilities to be approved by the State. It appears from the state’s latest court filing now seeking the assessment of that deferred penalty, that Chen’s companies have failed to meet ADEQ’s requirements and are still in violation for failing to confine contaminated wastewater. A hearing has been scheduled for June 7, to determine if GPPI will be assessed penalties. Meanwhile, GPPI continues operations to this day, ignoring required compliance under a 2021 Consent Order, as well as the fines that are piling up.12
US Environmental Protection Agency (EPA). The EPA’s online database lists numerous state permit violations and Clean Water Act infractions as well as the disclosure that the Prescott mining operations have racked up an eye-popping $650,000 in penalties in the past five years.13
(This post was updated on 4/29/24 to reflect a correction on the EPA’s ECHO database, which originally cited the amount as $6 million.)
US Department of Labor Mine Health and Safety Administration. This agency’s online violation tracker reports GPPI has more than 150 workplace safety violations since 2022, amounting to close to $100,000 in fines.14
Center for Biological Diversity. On April 15, 2024, the Center notified Chen and four of his companies 11 along with an affiliate property owner that they were potentially in violation of Section 9 of the Endangered Species Act. Specifically the Center noted that “mining and associate activities are occurring within the outer boundaries of designated critical habitat of the Mexican Spotted Owl including (but not limited to) tree removal and destruction of forest habitat, as well as related mining operations during the breeding season in close proximity to several Protected Activity Centers without proper permitting.”11 The Center’s further action is dependent upon several requirements, one of which is whether the company received proper permitting from the Fish and Wildlife Service as required under the Endangered Species Act.
Arizona Corporation Commission (ACC). Records show the ACC approved Chen’s September 2017 application for corporate status on July 24, 2018 as a foreign corporation operating out of Nevada.15
United States Small Business Administration (Texas). Despite millions in 2017 Chapter 11 bankruptcy proceedings, Songqiang Chen’s GPPI received a $2 million dollar SBA loan in February 2022. Chen used mineral rights and the 221-acre Yavapai County parcel where he was (and still is) violating Arizona water quality control laws as collateral.16 At the same time, Chen and GPPI issued a Deed of Trust to Angela Wang, for $600,000 using that same collateral.17 Angela Wang shares an address with the Leo L. Wang Trust, one of Chen’s affiliates. While property owners don’t have to check the background of their buyer; lenders do. How Chen ever got an SBA loan with his financial history is a mystery.
Payroll Protection Program (PPP). Gold Paradise Peak, Inc. received two PPP loans totaling $414,435. Both loans were forgiven in 2021.18
Yavapai County. The Board of Supervisors accepted and approved an easement donation from GPPI at its September 10, 2021 meeting.19 According to the agenda summary presented by Yavapai County Public Works Director Dan Cherry,19 the easement “will help support an upcoming joint project the County has with Prescott National Forest19.” The easement extends the width of Senator Highway and Walker Road where these roads traverse GPPIs property.19 The highway widening happens to incidentally benefit GPPI’s mining operations as well.
#4 – Remember the audience participates in Let’s Make a Mine Deal
After reading this article, you can just swipe right. You can adopt the grossly ill-informed attitude of Kelly Kading, the Prescott Daily Courier Columnist who stated, “Am I concerned that there is a new mine? Not a whit.”20
Or you act based on this understanding: This is a strip mine built on the old Senator Mine Superfund site. From the start, GPPI was required to confine contaminated wastewater on its private land, yet it released mustard-colored acid waters into nearby streams and even as far as the Hassayampa River.21 And if GPPI can move forward with its entire claims on public land, Mount Tritle’s destruction in the Prescott National Forest will be calamitous.
Thus far GPPI’s attempts to remedy the contamination has been done on the cheap, and have not worked.21 The solution to fix these problems is going to be very expensive—an expense that is the responsibility of a CEO who’s declared bankruptcy multiple times, defrauded creditors and refuses to pay existing fines. And yet we have seen little enforcement vigilance or public health advocacy from Yavapai County, state representatives and state agencies. So we ask, WHO IS GOING TO HOLD THIS COMPANY ACCOUNTABLE?22
If any of what you read here moves you, make your voice heard the old-fashioned way, with a letter, envelope and a stamp. (Emails are virtually useless as they are deleted en masse.) Addresses for elected officials and agency directors are located in this footnote.23 We suggest first directing the letters to: Karen Peters, the Director of ADEQ, our state representatives Bennett, Nguyen, and Bliss, and Board of Supervisors Chair Craig Brown. (Time is critical; the next ADEQ hearing is set for June 7, 2024.) Consider attending Yavapai County’s April 18 meeting at Yavapai College’s Performing Arts Center beginning at 5:30 PM. Livestream available here: https://www.youtube.com/@YavapaiCounty/streams
AZFPI gratefully acknowledges the contributions of Joe Trudeau and Truly Bracken to the authors’ understanding of complex environmental issues.
NOTES:
1 Different individuals and media outlets have reported varying amounts of GPPI’s private land ownership in Yavapai County. The Yavapai County Assessor records show the total acreage owned by GPPI, sister companies, or affiliates is 411.12 acres as follows:
Parcel 205-14-252 (103.06 acres). This parcel was purchased by Freshion, Inc., another Songqiang Chen company, in 2018 from seller Marilyn Davis. Warranty Deed – Yavapai County Recorder
- Parcel 205-14-246N now 205-14-246Q (221.11 acres). Snoozer Enterprises, LLC. sold this property and 16 mineral right claims to GPPI in February 2017 and released the deed of Trust in 2019 after GPPI paid back a $2.65 million loan from Snoozer. Special Warranty Deed Yavapai County Recorder Reception Number: 2017-0033827. Deed of Trust (loan) Yavapai County Recorder Reception Number: 2017-0033828). Deed of Release and Full Reconveyance Yavapai County Recorder Reception Number: 2020-0000414. Snoozer Enterprises, LLC: https://ecorp.azcc.gov/BusinessSearch/BusinessInfo?entityNumber=L10560996
- Parcel 205-14-257 (53.14 acres). GPPI sublet a parcel from Chen’s Sino Vantage Group in 2016. Sino was in turn leasing this property with an option to buy from owner Jason L. Wharton. Sino relinquished its lease and option to buy so Wharton could sell the property and two mining claims to the Leo L. Wang Trust in November 2023 (a Chen affiliate). Yavapai County Recorder Reception Number 2023-0051488. Coincidently (or maybe not), the Leo L. Wang Trust also owns property at 710 5th Street in Prescott which it purchased in December 2023 from Jo Commercial. Yavapai County Recorder Reception Number 2023-005387. GPPI’s current address according to the Corporation Commission is reported at 710 5th
- Parcel 205-14-253 (33.81 acres). The World United Order Society sold GPPI approximately 34 acres and 3 mineral rights in December 2023. Yavapai County Recorder Reception Number 2023-0051488. The World United Order Society is non-profit incorporated in Utah by Jason LeRoy Wharton. https://secure.utah.gov/bes/displayDetails.html
2Gold Paradise Peak, Inc., Arizona https://ecorp.azcc.gov/BusinessSearch/BusinessInfo?entityNumber=F22201899. In Arizona, a foreign entity is a corporation or LLC which was formed or created in a state or country other than Arizona including a corporation created under federal or tribal law. GPPI was previously created in both Nevada and California. https://azcc.gov/corporations/faqs
3A 2016 federal law provides that private companies do not have to disclose investors unless the number of investors triggers SEC filing laws (i.e. more than 2,000 distinct shareholders, totaling $10 million or more in capital). https://www.investopedia.com/terms/1/2000-investor-limit.asp#:~:text=The%202%2C000%20investor%20limit%20or,is%20a%20privately%2Dheld%20company.
4The map linked to this article illustrates the location of GPPI’s known mining claims on public (forest service) land. The Mining Law of 1872 declared all valuable mineral deposits in land belonging to the United States to be free and open to exploration and purchase. https://www.blm.gov/programs/energy-and-minerals/mining-and-minerals/about#:~:text=Laws&text=The%20federal%20law%20governing%20locatable,open%20to%20exploration%20and%20purchase.
A mining claim is a parcel of land for which the claimant has asserted a right of possession and the right to develop and extract a discovered, valuable, mineral deposit. There are three basic types of minerals on federally-administered lands: Locatable, leasable and salable. Mining claims are staked for locatable minerals on public domain lands. https://www.blm.gov/programs/energy-and-minerals/mining-and-minerals/locatable-minerals/mining-claims.
Claims must be recorded with the proper BLM state office within 90 days of the date of location and recorded with the proper county in accordance with their requirements. https://www.blm.gov/programs/energy-and-minerals/mining-and-minerals/locatable-minerals/mining-claims/recording.
5https://www.patagoniaalliance.org/wp-content/uploads/2019/08/A_SUMMARY_COMPARISON_MINING_AZ.pdf
6“SVG’s [sic] listed address originally was 283 Port Royal Ave., Suite 200 in Foster City, California, which is Mr. Chen’s home address.” SVG stands for Sino Vantage Group and was initially involved in a lease of one of the private properties in Yavapai County. They have subsequently been named in the State of Arizona’s lawsuit for water quality violations. Chen’s home address is reported in federal Case No. 14-31652-DM (In re: Metawise Group, Inc., Debtor, Randy Sugarman, Liquidating Trustee of the Metawise Liquidating Trust, Plaintiff v. Sino Vantage Group, Inc. a California corporation, Songqiang Chen, individual, and Dong Ji, individual).
7Chen’s California corporations include Gold Paradise Peak Inc., Sino Vantage Group, Metawise Group Inc., Metamining, Draco Resources LLC, Freshion Inc., Calida Metals, Gold Dike Inc. In addition, Gang Chen (family member) is identified as CEO of Iron Paradise Peak. Songqiang Chen is reported to have a controlling interest in California’s Kelson Management Corporation (federal complaint 14-31652-DM). In the same lawsuit, Chen is reported to have a controlling interest in Armco Metals. Nevada corporations include Gold Paradise Peak, Inc., and Metamining (now permanently revoked). https://esos.nv.gov/EntitySearch/OnlineEntitySearch
Other corporations with Chen ownership or controlling interest include Barnette Energy LLC, Spiro Mining, and Tarpon Stone Inc. with incorporations in Virginia, and Oklahoma.
8The following individuals are listed as officers or directors across multiple Songqiang Chen businesses: Gang Chen, Paul Chen, Dong Ji, YoYo Yao, and Davud Ha.
9Eight of Chen’s companies (or wholly owned subsidiaries) have had a total of 33 federal lawsuits filed between 2004 and 2017.
| Court | Number of Cases | Year(s) of Filing |
| Alabama Southern District | 3 | 2011-2013 |
| California Central District | 1 | 2004 |
| California Northern Bankruptcy | 15 | 2014-2017 |
| California Northern District | 1 | 2013 |
| Florida Middle District | 1 | 2005 |
| Florida Southern District | 1 | 2012 |
| Nevada Bankruptcy | 1 | 2016 |
| New York Southern District | 7 | 2004-2014 |
| Oklahoma E District Bankruptcy | 1 | 2017 |
| U.S. Court of Appeals 11th Circuit | 1 | 2017 |
| Virginia Western District | 1 | 2012 |
| TOTAL | 33 |
Federal cases involve Songqiang Chen directly or his companies and affiliates: Metamining, Inc. (CA), Metamining Nevada, Barnette Energy, Draco Resources, Metawise Inc., Sino Vantage Group, and Spiro Mining.
Additionally, there are three cases in the California Courts https://odyportal-ext.sanmateocourt.org/Portal-External/Home/WorkspaceMode?p=0
California cases include 17-CIV-04560 (2017); CIV530994 (2014) and CIV532927 (2015).
The majority of the federal cases involve or are related to Metamining and Metawise, both of which declared Chapter 11 bankruptcy. Metawise purported to be an international firm specializing in supplying key raw materials to the steel industry in China. Metawise entered into long-term contracts for supplying raw materials to China and attempted to develop mining projects in the United States. Court records show that Metawise engaged in investment schemes, representing that money would be used to develop a mine, thus earning profits for the investor. Further, a complaint against Metawise states that “the primary source of financing for Metawise was prepayments by customers whose orders were ultimately not filled.”
Perhaps the most informative is the complaint filed by the liquidating trust agent in the bankruptcy case against Metawise (Case No. 14-31652-DM). This complaint alleges Songqiang Chen and Dong Ji made numerous transfers, payments and loans from Metawise to Sino Vantage Group, Inc. and other Chen affiliates in an attempt to evade Metawise creditors. Additionally, the complaint documents seven lawsuits, judgments and collection actions in the millions of dollars experienced by Metawise “pre-petition [bankruptcy].” This includes numerous legal actions and disputes alleged against Metawise by customers and vendors, which involve entering into pre-paid agreements when Metawise was insolvent and could not meet its contractual obligations. Finally, the complaint alleges that, “Chen managed to secrete away millions from Metawise within one year of the bankruptcy filing and then used funds from Metawise affiliated companies to pay himself at least $491,559.90, between January 1, 2015 and November 30, 2016.” Of note is the use of Chen’s company, Sino Vantage Group in these schemes. The complaint alleges, “despite only having been started as a corporation on February 18, 2014, SVG proclaims on its website [in 2017] that, ‘During the two decades of its existence, it has assembled a strong network of suppliers and end consumers with stead [sic] growth in revenue and profitability.’ http://www.sinovgroup.com/.” The State of Arizona is currently suing Sino Vantage Group and Gold Paradise Peak for alleged violations of Arizona’s water quality laws control related to the Senator Highway mine. Sino leased property in this area beginning in 2016.
10 Case No. 14-31652-DM In re: Metawise Group, Inc., Debtor, Randy Sugarman, Liquidating Trustee of the Metawise Liquidating Trust, Plaintiff v. Sino Vantage Group, Inc. a California corporation, Songqiang Chen, individual, and Dong Ji, individual.
12 Case number CV-2019-005385 filed March 3, 2019. State of Arizona, ex rel. Misael Cabrera, Director, Arizona Department of Environmental Quality, Plaintiff v. Gold Paradise Peak, Inc., a Nevada corporation, and Sino Vantage Group, Inc., a Californa Corporation, Defendants. https://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/caseInfo.asp?caseNumber=CV2019-005385
“The State brings this civil action under Title 49, Chapter 2 of the Arizona Revised Statues (“A.R.S.”) and the rules adopted thereunder, against Gold Paradise Peak, Inc. (“Gold Paradise”) and Sino Vantage Group, Inc. (“Sino Vantage”) for violations of the State’s water quality control laws.”
“Defendant Gold Paradise conducts mining and mining-related operations at the Azurite Mine, which is located on Yavapai County Parcel ID 205-14-257 in Yavapai County, Arizona.” March 18, 2024 Stipulated Order. “The deadline for GPPI’s response to the State’s Motion for Order to Show Cause is extended by sixty (60 days).” Status conference June 7, 2024.
13 https://echo.epa.gov/detailed-facility-report?fid=AZMS81366&sys=ICP#summary
14 This is a link to the searchable US Department of Labor Mine Health and Safety Administration MHSA database. https://microstrategy.msha.gov/MicroStrategy/asp/Main.aspx?
15GPP was first incorporated in Nevada and California in 2016. Songqiang Chen is listed as the CEO for both corporations. Gold Paradise Peak, Inc. applied to the Arizona Corporation Commission (ACC) for recognition on September 18, 2017. The ACC approved them as a Foreign For-Profit (Business) Corporation almost a year later on July 24, 2018. The business type is mining, Quarrying, and Oil and Gas. The address on the original application is the address for the Nevada corporation by the same name (204 West Spear Street #3597, Carson City, Nevada). https://ecorp.azcc.gov/BusinessSearch/BusinessInfo?entityNumber=F22201899
16 Yavapai Recorder Reception Number 2022-0050399. Deed of Trust between Gold Paradise Peak, San Mateo, CA and Beneficiary Government of the United State of America, U.S. Small Business Administration for real property in Exhibit A and Mineral Rights.
https://yavapaicountyaz-web.tylerhost.net/web/document/DOC717S11588?search=DOCSEARCH464S1
17 Yavapai Recorder Reception Number 2022-0007988. Deed of Trust Angela Wang, beneficiary 969-G Edgewater Boulevard #350, Foster City, CA 94404. Coincidentally, this is the same address used by the Leo L. Wang Trust, which leases Prescott office space to GPPI. https://yavapaicountyaz-web.tylerhost.net/web/document/DOC682S2915?search=DOCSEARCH464S1
18PPP loans https://projects.propublica.org/coronavirus/bailouts/search?q=gold+paradise+peak&v=1
19 Yavapai County Recorder Reception Number 2021-0066053. Public Right of Way Easement. https://yavapaicountyaz-web.tylerhost.net/web/document/DOC634S195?search=DOCSEARCH464S1
The agenda item narrative can be viewed by downloading the 9/1/2021 agenda item from https://obpub.yavapaiaz.gov/cob/search/docs/index.html
US Forest Service Agreement No. 20-PA-11030900-096 and YC Contract No. 2020-346
20 “Science and Sense: Yours or mine? A mining story. Kelly Kading, Prescott Daily Courier Sunday, April 14, 2024. https://www.dcourier.com/news/2024/apr/13/science-and-sense-yours-or-mine-mining-story/
21Case number CV-2019-005385, February 23, 2024, State’s Motion for an Order to Show Cause. “The State of Arizona, Arizona Department of Environmental Quality (“ADEQ” or “State”) moves for an order to Defendants, Gold Paradise Peak, Inc. (“GPPI”) and Sino Vantage Group, Inc. (“Sino Vantage”) to show cause why the Court should not find the Defendants in contempt for violating their respective Consent Judgments, pursuant to Ariz. R. Civ.P. Rule 65(f).”
22Many government agencies have not been vigilant in their enforcement efforts, allowing Chen to evade accountability for over five years. For starters, how is it that Arizona law allows someone with multiple bankruptcies to set up shop here so easily? How can GPPI continue to stay in “good standing” with the Arizona Corporation Commission while it racks up years of unpaid environmental and mining safety violations? It is simply inexcusable that State ADEQ has allowed GPPI to continue to operate three mines for five years while the company remains in blatant violation of water quality laws and a Consent Order. On a more local level, our State Representatives and the Chair of the Board of Supervisors (he sets the Board’s agenda) could lead the charge to protect residents as well. Chairman Brown need only to look to Pima County for a primer on how Yavapai County can be more diligent in advocating for public safety and environmental impact mitigation from mining (See Arizona Daily Star, “Copper World’s proposed aquifer protection permit too weak, Pima County says,” Tony Davis, April 13, 2024). Representatives Ken Bennett, Selina Bliss and Quang Nguyen must put increased pressure on both state agencies and our Congressional delegates to address GPPI’s chronic non-compliance. Lastly, if GPPI is successful with any of its mining claims on public land, the Prescott National Forest and Bureau of Land Management, have a duty to provide the utmost transparency to the public—starting with widely noticed public hearings.
23Mailing Addresses:
Yavapai County Board of Supervisors, The Honorable Craig Brown, Chairman, 1015 Fair Street, Prescott, AZ 86305
Arizona House of Representatives, The Honorable Selina Bliss, Representative LD1; The Honorable Quang Nguyen, Representative LD1, 1700 West Washington Street, Phoenix, AZ 85007
Arizona Senate, The Honorable Ken Bennett, Senator LD1, 1700 West Washington Street, Phoenix, AZ 85007
Arizona Department of Environmental Quality, Karen Peters, CEO, 1110 W Washington Street, Suite #160, Phoenix, AZ 85007