A U.S. Federal Judge has ruled that Dan Liu, of Founders Group International can legally sell each of his golf course holdings and/or sell the entire Founders Group International entity to private equity investors.
As a backdrop, Dan Liu now lives near the airport in Charlotte, NC. DJ Karavan is over operations at Founders Group International.
A little past history of Dan Liu and Founders Group International as written by the Grand Strand Daily:
Exploring the Impact of Founders Group International on Myrtle Beach’s Golf Scene
Word began leaking from China that approximately $1.2 billion was missing from Yiqian Funding accounts and payments due investors were not being made. By early 2017, Chinese government officials were raiding Yiqian Funding offices and arrest warrants were issued by the Nanjing Prosecutor’s Office for Liu, Xue and other officials of the three corporations originally holding the Founders Group International assets. The Nanjing Prosecutor’s Office called the operation a Ponzi Scheme.
Liu, acting as exclusive agent for the Chinese corporations and as 90% owner of Founders Group International, established mortgages against all of the FGI properties and had the mortgages assigned to himself, personally, in a series of what can only be described as questionable transactions registered in Horry County.
Xiu and 11 other company officials went to trial for an “illegal fundraising case” designated as a “Series of Yiqian Events.” by the Nanjing District Attorney for Jiangsu Province in China. They are currently serving 15-year prison sentences.
According to evidence and testimony at the criminal trial, Liu, Xiuli Xue and Xiang Fei established a peer to peer financing business called Yiqian Funding in 2010. The business split into two divisions, Nanjing Yiqian and Jiangsu Yiqian, in 2013. Xue was in charge of Nanjing Yiqian, which was the fundraising half of Yiqian Funding. Liu was the managing partner of the entire operation and also managed Jiangsu Yiqian, which, supposedly, invested the funds raised by Xue’s division.
Last week, we received the following from Lawyer Anthony Scordo, an attorney for the Plaintiffs:
David, you may recall we spoke at length last year about the Dan Liu case that we (Gene Connell, Reese Boyd and later I) brought on behalf of his victims. To bring your readers up to date, today Judge Dawson dismissed any claims that prevented Liu from selling all the ill-gotten properties at large profit and presumably skewing the real estate market all over Horry County.
U.S. District Judge Joseph Dawson, III gives no reason for this holding when Liu does not even deny that he used money obtained from his ponzi scheme in purchasing the 20 or so courses. In his decision he doesn’t even address whether South Carolina or Chinese law should apply when Liu has straddled both sides of that fence throughout the litigation whichever best behooved him.
This decision leaves the case completely in limbo and ensures that Dawson could not care less how this illegal alien has beat the system while at the same time avoiding ICE.
Dawson’s circular reasoning is that his own limitation of the scope of the claim by denying the class action somehow limited the relief the remaining individuals could obtain.
Your readers might be curious about why SC courts are protecting this ne’er do well and who is benefitting thereby.
Our readers certainly are.
