Post Tagged with: "Founders Group International"

Myrtle Beach City Election Issues

August 6, 2017 10:57 AM
Myrtle Beach City Election Issues

Less than three weeks remain before filing officially opens for the upcoming Myrtle Beach city elections.

Already a number of people have emerged to announce their intention to run against the four incumbents up for reelection. While I’m sure there will be a large field of challengers, we won’t know exactly who is in the race until filing closes.

In the meantime, there are some interesting dynamics developing for this year’s election.

In the past few months, council has drawn criticism for the threatened use of eminent domain to take control of several properties in the Superblock after secretly purchasing approximately 10 other properties in that area.

After being exposed, the city announced a plan to redevelop the area with a new, $10 million building to, reportedly, house Chapin Memorial Library and a new Children’s Museum.

There are questions whether eminent domain taking of a property can be used for such a purpose and whether $10 million of taxpayer money is best spent on this project when public safety needs, among others, are critical at this time.

Shootings on Ocean Boulevard and in other parts of the city highlight the amount of violence that has infringed on Myrtle Beach streets. After the Father’s Day weekend incident during which eight people were wounded on Ocean Boulevard, the city placed barricades on one section of Ocean Boulevard, ostensibly for crowd control, but in front of retail stores and restaurants which occupy an area the city would also like to see be redeveloped.

The businesses in the area of the barricades reported drops in sales of 30-60 percent from previous years numbers.

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Dan Liu Fires Back at Founders Group International Partner

July 24, 2017 4:22 AM
Dan Liu Fires Back at Founders Group International Partner

(Pictured above, Dan Liu (left) and Nick Dou in happier times)

Dan Liu, majority partner of the Founders Group International entities, fired back hard at minority partner Nick Dou in answering a complaint in a lawsuit filed by Dou against Liu, three Chinese corporations and the many limited liability companies that make up the Founders Group International holdings.

According to Dou’s complaint, the three Chinese corporations were 90 percent owners of the Founders Group properties and Dou was 10 percent owner. Liu was the exclusive authorized agent in the U.S. for the Chinese corporations.

In his lawsuit, Dou alleges Liu was stripping assets out of the corporation for personal and other uses. The suit alleges breach of contract, fraud and conversion by Liu.

Additionally, Dou asks for a full accounting of corporate assets as well as a temporary restraining order directing Liu “shall not divert, remove, alienate, convert, encumber or otherwise manipulate any corporate assets of FGI or any of the other FGI Entities for his personal use or benefit, until such time as the claims raised in this action have either been resolved by this Court, settled and/or withdrawn by the Parties to this action…”

The complaint also states, “Plaintiff Nick Dou is informed and believes that the assets and property of FGI and the affiliated FGI Entities are at grave risk and danger of loss, and of material injury and impairment, at the hands of Defendant Dan Liu, if such property and assets are left under the exclusive control of Defendant Dan Liu.”

Dou’s complaint also states, “Upon information and belief, on or about March 27, 2017, the Nanjing District Attorney’s office for the Jiangsu Province of the PRC issued public statements that it seeks the arrest of Defendant Dan Liu for suspicion of investment fraud and “absorbing public money.”

A copy of this public statement release was submitted as an exhibit with Dou’s complaint.

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New Insights Into Founders Group International Lawsuit

July 7, 2017 5:02 AM
New Insights Into Founders Group International Lawsuit

(Pictured above, Dan Liu (left) and Nick Dou)

Investigation into the lawsuit filed in the 15th Judicial Circuit by Nick Dou against Dan Liu and three Chinese corporations over properties held collectively by Founders Group International continues to bring new revelations to the surface.

According to a source familiar with the lawsuit, Dan Liu was served locally with the lawsuit in recent days.

Liu’s peer to peer lending company, which did business in the Peoples Republic of China (PRC) under both its Mandarin name “Yiqian Funding” and its English name “Easy Richness”, raised the money that was used to buy golf courses and other property in Horry and Georgetown counties.

According to records in Horry County, Liu and Dou established approximately 16 limited liability corporations to hold the various properties purchased in Horry and Georgetown counties. Collectively, the llc’s are known locally as Founders Group International.

According to court documents, Dou holds 10 percent interest in Founders Group International and the associated llc’s. The three Chinese corporations, for which Liu acts as exclusive U.S. agent, hold the remaining 90 percent of the llc’s.

According to sources familiar with Yiqian Funding, the company raised a total of approximately 10 billion Yuan ($1.5 billion) from approximately 60,000 investors over a six year period. Estimates are that at least $300 million was taken out of the PRC for investment in the U.S.

Sources with knowledge of Yiqian said what was purchased was not really important to Liu. His main goal was getting the money beyond the borders of the PRC.

For that purpose, Liu established the three Chinese corporations, apparently nothing more than shell corporations, to receive the investor money from Yiqian Funding to use for purchases in the U.S.

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Records Reveal Different Picture of Founders Group International

June 28, 2017 1:40 PM
Records Reveal Different Picture of Founders Group International

When Nick Dou filed a lawsuit against Dan Liu and three Chinese corporations last week, he brought to light much more than one Chinese partner of Founders Group International, LLC suing other Chinese partners.

According to the lawsuit, Dou owns 10 percent of approximately 16 LLCs with one or more of three Chinese corporations owning the other 90 percent of each LLC. The parties primarily conducted business locally as Founders Group International, LLC.

Dan Liu appears not to have a direct ownership interest in any of the 16 LLCs, but rather acts as exclusive U.S. business agent for the three Chinese Corporations.

However, further research on business transactions involving one or more of the LLCs as well as the three Chinese corporations revealed that Liu now appears to hold mortgages on virtually all of the collective Founders Group International, LLC golf courses and development property in Horry and Georgetown counties.

Between February 2017 and May 2017, well over $100 million in promissory notes and mortgages were transferred to Dan Liu in a series of approximately 25 transactions recorded in Horry County.

Seventeen of the recorded transactions assigned promissory notes and mortgages from one or more of the three Chinese corporations for which Liu allegedly acted as exclusive U.S. agent to Liu. Papers for eleven of the transfers to Liu were signed on February 3, 2017 and recorded on February 10, 2017 and papers for the remaining six transfers were signed on April 28, 2017 and recorded on May 25, 2017.

The remaining transactions were preliminary assignment of promissory notes and mortgages so they could ultimately be assigned to Liu.

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Chinese Fireworks Erupt Over Founders Group International, LLC

June 24, 2017 3:33 PM
Chinese Fireworks Erupt Over Founders Group International, LLC

Fireworks have erupted between the two Chinese principal owners of Founders Group International, LLC (FGI) as Nick Dou, one owner of the corporation, filed suit against Dan Liu, the other owner of the corporation, and three Chinese corporations Liu allegedly acts as exclusive agent for, in 15th Judicial Circuit Court on June 22, 2017.

According to the complaint, case number 2017-CP-2603932, Dou alleges Liu was stripping assets out of the corporation for personal and other uses. The suit alleges breach of contract, fraud and conversion by Liu.

Additionally, Dou asks for a full accounting of corporate assets as well as a temporary restraining order directing Liu “shall not divert, remove, alienate, convert, encumber or otherwise manipulate any corporate assets of FGI or any of the other FGI Entities for his personal use or benefit, until such time as the claims raised in this action have either been resolved by this Court, settled and/or withdrawn by the Parties to this action…”

The filing also states, “Plaintiff Nick Dou is informed and believes that the assets and property of FGI and the affiliated FGI Entities are at grave risk and danger of loss, and of material injury and impairment, at the hands of Defendant Dan Liu, if such property and assets are left under the exclusive control of Defendant Dan Liu.”

Dou asks the Court to “exercise its authority pursuant to S.C. Code Section 15-65-10, et seq., and immediately appoint a receiver over the property, assets, and operation of FGI and the affiliated FGI Entities.”

The three Chinese corporations named as co-defendants with Liu are: Jiangsu Tianru Danfo Commerce and Industry Co., Ltd., Nanjing Shuojun Trade and Industry Co. and Nanjing Xinyuanyuan Commerce and Trade Co., Ltd.

According to the complaint, all three corporations are organized and existing under the laws of the Peoples Republic of China and none of the three corporations have been “admitted to or authorized to conduct business in South Carolina.”

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