TERENCE SUMPTER, et al. vs City of New Orleans Regional Center-NobleOutReach & NobleOutReach, LLC

Filing Date:July 11, 2014

Case:TERENCE K. SUMPTER, et al. vs. WILLIAM B. HUNGERFORD, JR., et al.

Jurisdiction:Federal District Court for the Eastern District of Louisiana

Status:Resolved

Civil / Criminal:Civil

Breach of fiduciary duty

Misrepresentation

A group of dissatisfied investors brought this lawsuit as a derivative action, brought on behalf of the Fund, against NOR, Mr. Hungerford, Mr. Milbrath, and a number of other entities, including more than thirty limited liability companies. Plaintiffs claim that Defendants never followed up on their promise to use the money invested to further the mission of the Fund thereby denying the investors the opportunity to seek permanent residency through the EB-5 Program. Instead, Plaintiffs allege Defendants took the money invested and used it for their own gain and/or in other unnecessary and wasteful projects, in breach of their fiduciary duty to the Fund. Plaintiffs contend Defendants made various misrepresentations to the Plaintiffs regarding how their investments were being used, the profitability of the Fund's projects, and the status of the job-creating projects. Plaintiffs claim that as a result of Defendants' actions, none of the investors in the Fund successfully obtained permanent residency through the EB-5 Program.