In a high-profile case, prominent Southern California businessman Charles Huang has accused former employee Xiaolei Sunny Sun of extortion, demanding a staggering $20 million in exchange for not releasing a compromising video. The situation unfolded in Pasadena, where Huang, recognized for his philanthropic contributions—including a noteworthy $7 million donation to the East West Medical Center in San Francisco—filed a lawsuit against Sun and her two associates, Lihua Stearns and She Xiaodong. All three defendants have pleaded not guilty.
According to the Los Angeles County District Attorney’s office and reports from the Los Angeles Times, Sun had previously worked as a personal trainer before joining Huang’s company, Pasaca Capital, as a public relations director in April 2022. At that time, she relocated from New York to a company apartment in Pasadena. Over the next six months, Huang and Sun engaged in a consensual sexual relationship approximately five to six times, but their relationship reportedly deteriorated by the end of 2022.
In January, Huang met with one of Sun’s friends, Lihua Stearns, at a Starbucks in Arcadia. During this meeting, Stearns disclosed that Sun had recorded their intimate moments and was demanding $20 million from Huang to keep the footage private. Initially, Huang claimed he could not meet the financial demand, which led to the amount being lowered to $2 million. Ultimately, he made a $600,000 down payment. This set off a series of events that led Huang to hire private investigators and lawyers, which resulted in police involvement. By May, law enforcement had arrested Stearns and Xiaodong, while Sun surrendered to authorities after being charged.
The three defendants are now facing felony extortion charges that, if convicted, could land them a maximum of four years in prison. They were released on bail set at $35,000 each and appeared in court on September 24, where they reaffirmed their not guilty pleas with their attorneys present.
David Lopez, the attorney representing the defendants, stated that evidence demonstrating their innocence has already been submitted to the court. He declined to provide details about the case due to the ongoing trial. Meanwhile, Sun’s attorney Garo Madenlian contended that Sun was simply negotiating in a misguided manner and was not partaking in any extortion. He also referenced a letter from Sun’s previous lawyer to Huang, which accused Huang of luring Sun to Pasadena under false employment pretenses.
While prosecutors have yet to present any video evidence, Huang testified that Stearns had shown him a clip of himself, implying it may have been secretly recorded. Judge Rupa Goswami indicated that the prosecution has established critical elements of the extortion charge, particularly the legitimate threat of exposure related to the secret footage.
During the preliminary hearing, Huang voiced serious concerns regarding the threats against him, fearing that the video’s release could significantly impact both his business and family life. Although he has been married for 30 years, Huang’s wife filed for divorce earlier this year but later retracted her petition.
On top of these legal challenges, Huang is also entangled in a civil lawsuit against his former partners at Innova Medical Group, alleging they embezzled $106 million in commissions. The partners countered the claim by accusing Huang of mismanaging funds due to poor investments and extravagant spending. While Huang denies these allegations, he acknowledged having had a sexual encounter with one of Innova’s executives.
Despite these challenges, Huang remains known as a philanthropist; he made a groundbreaking $40 million donation to his alma mater, Wuhan University, in late 2021—the largest by an individual in the school’s history. His $7 million contribution to the East West Medical Center in June 2022 is also notable, as it marked the largest single donation the institution has received in its century-long existence.
