Ausin Group

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The off-the-plan buyer of a double-storey penthouse at One A in Sydney's Erskineville has defaulted.
The developer, Abacus and Linear have moved to re-sell the three-bedroom, 231 square metre offering which comes with two car spaces and storage.
It was purpose-fitted for the original buyer and includes two integrated double-door fridges.
The developers say they have dropped the price on the penthouse to "meet the market".
The newly completed building at 1A Couson Avenue offers 175 apartments on a site bought for $32.55 million in 2015.
Fairfax Media reported its Chinese buyer, facilitated by beleaguered Chinese-based agent Ausin, failed to settle its purchase.
The company's China business collapse resulted in 130 failed residential property settlements in Australia.
More than 100 Chinese property investors lost millions of dollars in deposits and payments for off-the-plan houses and apartments in Sydney, Melbourne and Brisbane. 
Ausin's China business has been accused of misappropriating tens of millions of dollars in settlement and deposits.
The Chinese investors were advised that the Ausin properties seemed like a great wealth management product, which guaranteed a five-year lease and 10% return.
The investors turned to Ausin because the agency had found a way to circumvent China's capital outflow restrictions which restrict them from sending more than the equivalent of US$50,000 out of the country.
They said they would pay Ausin in yuan, and it would find its way to Australia.
They estimate the entire amount lost by property investors through Ausin is 358 million yuan.
The Chinese investors are banding together to press their claims for more than $60 million.
The group is led by Chinese businessman Qu Haotian, who estimates that as many as 300 Chinese families may have been harmed by the collapse of Shenzhen Ausin Investment Consulting Group in August.
Qu asked The Australian to disguise his real name for fear of reprisals.
They are planning legal action against Ausin Group's Australian operation, which is still solvent.
The Chinese-based company, which was run by businessman Jin Tianyou, had a marketing agreement with the Australian company to use its name and refer prospective clients from China.
ASIC records show Jin was also a director of Ausin Australia from 2009 until February.
The Ausin Group in Australia has cut its ties with the Chinese company.
It has issued a statement saying it is “saddened by recent allegations of fund misappropriation in China against its Chinese marketing partner” and is working with NSW police on the issue.
Qu estimates the total amount lost could be $60 million.
Ausin Group (Australia), in a statement, said it had sold more than 8000 properties over the 10 years of its marketing agreement with the company in China.
It said payments made directly to Jin were in breach of his company’s agreement with Ausin Australia.
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Ausin buyer defaults on One A Erskineville penthouse

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EIG Developments has moved to affirm the security of deposits paid by buyers in the Elpis project at Truganina, in Melbourne’s west.
The company advised it had secured five buyers through informal referrals by Ausin Australia. 
"The funds obtained from these buyers are well-protected and safely held in Australia, in EIG’s solicitor’s trust fund," a spokesperson advised.
EIG Developments Australia categorically stated that the land packages purchased by these five buyers will proceed to settlement, without any disruption.
The suggestion of deposit tumult in projects across the east coast arose in a newspaper report by the Australian Financial Review.
As an Australian developer, EIG Developments Australia’s focus is on sales for the domestic market, EIG told Property Observer.
EIG was responding to news that <a href="https://www.urban.com.au/news/88045-chinese-property-deposit-funds-allegedly-misappropriated-in-ausin-china-collapse" target="_blank">the residential project marketer Ausin China has collapsed</a> leaving a trail of 100s of failed property settlements in Australia.
"Any informal connection with Ausin Australia has been discontinued," EIG added.
Ausin China sold off-the-plan apartments and houses to buyers in China, with an investigation now underway into the whereabouts of the deposits along with settlement monies.
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Ausin Australia, led by founder and chief executive Joseph Zaja, indicated on Friday there was evidence of fraud and the matter has been reported to the Australian police.
Last year new land estates within the Melbourne suburb of Truganina were identified as providing an affordable option for first home buyers, according to HTW’s Month in Review: March 2017. 
The median house sale price in January 2017 was $492,000 in Truganina. It is now <a href="https://www.urban.com.au/news/10564-truganina-vic" target="_blank">$541,000</a>.
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EIG Developments affirms Elpis, Truganina buyer deposits secure in Australia

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Residential project marketer Ausin China has collapsed leaving a trail of 100s of failed property settlements in Australia.
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Ausin China sold off-the-plan apartments and houses to buyers in China, with an investigation now underway into the whereabouts of the deposits along with settlement monies.
Jin Tianyou, aka Harry Jin, who was in charge of running the Ausin China offices, is allegedly being sought by authorities.
Video of hostile graffiti painted on the lobby walls of its Shenzhen office on Wednesday (below) have been circulated on WeChat, alleging "Ausin money launderer" and "black intermediary."
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/20/ausin2.jpg" alt="">
The confirmation of the official investigation came after Chinese speculation that "the funding chain has broken." An August 15 letter to staff and others affected suggested "seven solutions" after the so-called "rogue" behaviour.
Staff were told "because the company faces serious financial difficulties, the salary of the colleagues in July needs to be delayed."
Ausin Australia, led by founder and chief executive Joseph Zaja, indicated on Friday there was evidence of fraud and the matter has been reported to the Australian police.
Zaja has cancelled licensing agreements with Jin.
"We have zero tolerance for any misappropriation of funds or corrupt behaviour," Zaja said.
Zaja confirmed that around 8000 properties have been sold during the near decade long agreement with Shenzhen Ausin Investment Consulting Co. Ltd., which was licensed to use the Ausin brand in China.
Jin ran all the China offices under a marketing and client referral agency agreement with Ausin Group.
Ausin's China business was a separate entity to Ausin Australia. Jin resigned his Australian directorship earlier this year. The Australian Financial Review says Jin is still registered as a shareholder.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/20/ausin3.jpg" alt="">
A Chinese website has reported the relationship between the Australian headquarters and China outfit had "become tense" from 2015 in regard to a "truncation" of commission flow.
Ausin Australia has advised that Ausin China was "expressly prohibited from the collection of any funds", although allegations have surfaced that deposit funds were paid directly to Mr Jin.
The most recent appearance of Jin was in April at a press conference in China.
In attendance were representatives from some of the biggest media channels in China, including Tencent and Sina Weibo.
The event was marked by a speech from Harry Jin, managing director of Ausin China.
It has been advised the collapse leaves a trail of 130 failed settlements of houses and apartments in Australia across 15 projects in Sydney, Melbourne and Brisbane. 
There have also been reports in China of "disguised exchanges."
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"There will be some initial concerns from Chinese buyers because Ausin is the biggest known Australian apartment agent in China," project marketer CLG Group Real Estate managing director and former McGrath Asian business development manager Allen Yan said when asked about the likely fallout.
"A lot of people believed them and trusted them.
"The collapse will hurt their confidence, but only in Ausin as an agent," Yan told the AFR.
House and land projects reportedly among the projects where settlements have been lost have been suggested as <a href="https://www.urban.com.au/news/88181-eig-elpis-truganina-buyer-deposits-secure-in-australia" target="_blank">Elpis by developer EIG</a>, Williams Landing by Cedar Woods, and Willow Pimpama Village in south-east Queensland region.
The Australian-based Apartmentdevelopments website proclaims Ausin Group as one of the leading partners for major Australian developers for project sales and marketing into China and Australia.
It suggests Ausin was "the first choice business for mainland Chinese sales" for listed companies including Mirvac, Stockland, Leighton Properties, Cedar Woods, SP Setia and Lend Lease.
Ausin's other developer relationships were listed as including Sunland, Metro Properties, Rose Group, Crown, Glenvill, Satterley, Little Projects and Intrapac.
In 2015 Property Observer reported Ausin Group had opened two new offices in China to cash in on the growing demand from China buyers for new Australian properties.
The offices in Dalian and Chengdu took its total number to 15 offices in China.
At the time it was noted Ausin employed over 500 staff working across Sydney, Melbourne, Brisbane, Auckland and London.
The group also offers accounting, property management and migration visa services.
Uglobal Immigration Magazine recently recognized the global investment migration industry’s most influential and powerful leaders with the distinguished Top 100 Global Migration Agency CEOs Awards including Ausin 澳信, Shenzhen, China, and its CEO, Yanqin Zhu.
 
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