Post Tagged with: "Yiqian Funding"

Chinese Trial Raises Questions About Local Leadership

May 24, 2018 3:19 PM
Chinese Trial Raises Questions About Local Leadership

A criminal trial in China added a clarifying chapter to the saga of Chinese investments in the Grand Strand area and the naivete of local officials who touted them here.

By 2014, the golf tourism business was in serious decline. Owners of golf courses, many still paying off mortgages, were stuck with assets on their books far exceeding their actual market value. Many were quietly trying to sell the courses with little success.

Jane Zheng was a native Chinese working as a realtor with a local company. Her niche market was other Chinese nationals with seemingly excess cash to invest in U.S. properties. At the time, the Chinese economy was growing at such a rate that many Chinese businesses and individuals had considerable excess cash to invest.

Zheng connected with Dan Liu, reportedly a managing partner in Yiqian Funding, a peer to peer lending company in China that received money from Chinese investors that it lent to business or other entrepreneurs or invested it. Investors and the company supposedly made money on the interest paid on the loans or on the rise in investment assets.

Over an approximate 18 month period, Zheng brokered the sale of 22 local golf courses and other development properties to, supposedly, three Chinese corporations for whom Liu was the exclusive U.S. representative.

While not being licensed to do business in South Carolina, according to records of the S.C. Secretary of State Office, the three corporations supposedly formed at least 16 LLCs locally, each holding some of the various golf course and development property assets. One or more of three Chinese corporations owned 90 percent of each LLC with Liu, as the exclusive agent, acting for the corporations. The LLC’s primarily conducted business locally under the name Founders Group International.

Everything looked great. Local owners got rid of golf course properties that had become toxic to them. Liu was playing the big money man locally and his partner in Yiqian Funding, Xiuli Xue, was bringing potential investors to Horry County to see investment opportunities.

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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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