A Developer in Zibo Vanishes After Raising Billions, One Apartment Sold Six Times
Recently, the disappearance of Liu Cheng, the developer behind the Shunjing Mingzhu housing complex on Shunjing Road in Jinan, has caused a huge uproar. Soon after his vanishing, it was discovered that many of the apartments had been sold multiple times. Fearing that their expensive purchases would vanish overnight, owners who had yet to receive their keys took matters into their own hands by hiring locksmiths to change locks and moving old furniture into the properties to "claim" them.
Liu Cheng's disappearance also has ties back to his hometown of Zibo, where he reportedly absconded with billions raised from local residents. Meanwhile, in Jinan's Kuangshan Auto World, Liu Cheng's First Mazda 4S store has been completely emptied by car buyers who paid deposits but never received their vehicles, as well as suppliers and other creditors.
The Jinan 4S Store "Raided Empty"
Recently, reporters visited Kuangshan Auto World and found that the Shandong Xinyuan Sales Service Store for FAW Car located at East Area No.1 was completely empty, with locked glass doors and a disordered interior strewn with broken glass and other debris. There were no signs of office supplies or vehicles inside, nor any auto parts in the repair area behind the store. "All the valuable items have been looted," said one local resident. Starting from November 17th, numerous creditors, including car buyers and business partners, could not find the boss and began removing items from the store when they realized they wouldn't be repaid. "Even a display car in the showroom was towed away," the resident added. Among those taking items were car buyers who paid deposits but never received their cars, suppliers, and financial guarantors, all of whom claimed Liu Cheng owed them significant sums of money.
Staff at the Kuangshan Auto World management department said that this 4S store hadn't paid rent or utility bills for several months. "He planned to flee; he even took his mother-in-law with him," the staff member commented.
One Apartment Sold Six Times
The raid on the 4S store was just the beginning. Next, Shandong Henghua Real Estate Co., Ltd., where Liu Cheng is the legal representative, also encountered a crisis, most directly shown by the sudden halt in construction of the Shunjing Mingzhu residential complex on Shunjing Road in Jinan. This complex was supposed to deliver houses last June, but now it owes construction payments, and the homeowners have discovered that some apartments were sold to three or four different buyers—or even more.
Ms. Chen, a homeowner, told reporters that the 260 square meter duplex she purchased had been signed online five times under different door numbers. "I checked at the Housing Bureau and found one apartment sold to six different families," she said.
Mr. Cui, another homeowner, mentioned that since they hadn't received their keys yet, many homeowners hired specialized locksmith companies to open the doors and replace the locks. Some even bought a few tables and chairs nearby and placed them inside.
Additionally, the Dongcheng Moore construction site on Industrial South Road in Jinan has also stopped work. A worker from Guangdong Runmin Construction & Installation Engineering Co., Ltd.'s Jinan branch complained, "They haven't paid us our engineering fees or progress payments; how can we continue construction?" The worker revealed that they were owed at least tens of millions of yuan.
Police Have Located Liu Cheng's Position
There are various rumors about Liu Cheng fleeing abroad, with some saying he landed in Malaysia and others claiming his entire family disappeared together. Landlords and car owners whose interests were harmed have successively reported the case to the Economic Crime Investigation Division of the Jinan Municipal Public Security Bureau. Officers informed reporters that the case has been solved and Liu Cheng's location has been determined, though further investigation is ongoing.
Jinan is only considered Liu Cheng's second battlefield. In his hometown of Zibo, many people have had financial dealings with him.
Ms. Yang works for an investment company in Zibo. She said that many people lent money to Liu Cheng through investment companies at a monthly interest rate of 3%. Liu Cheng promised collateral in the form of his assets in Jinan. "We went to see the buildings in Jinan, and they looked great—there were houses and land. He's involved in real estate, which is already highly profitable. He was using our money at a relatively low cost of 3%, so we thought he'd definitely make enough profit. Relatives and friends all invested." From initially investing a few ten thousand yuan to 3 million yuan just before Liu Cheng fled, Ms. Yang couldn't resist the temptation and ended up investing all her relatives' and friends' money into Liu Cheng and his real estate projects.
The Largest Creditor Lent 66 Million Yuan
News of the Jinan 4S store being raided and problems with the housing developments quickly reached Zibo. Ms. Yang said, "When we heard the boss ran away, we were shocked, thinking it impossible since he's from here. By noon, they went to Jinan and found that the Xinyuan Auto store had been smashed, and Henghua Real Estate was empty."
Ms. Yang stated that according to their investment company's statistics, Liu Cheng borrowed 180 million yuan from over a thousand ordinary people in Zibo. "Our finance team records every inflow and outflow of money, totaling 180 million yuan in our company, all through formal contracts."
According to informed sources, the largest creditor lent Liu Cheng 66 million yuan.
An informed source commented, "The Shunjing Mingzhu case involves multiple places in Shandong province, spanning industries such as investment companies, banking, real estate, and personal lending activities. These actions involve an estimated amount of 6 to 8 billion yuan."
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