UNITED STATES SECURITIES AND EXCHANGE COMMISSION vs Emilio N.Francisco & PDC Capital Group

Filing Date:December 27, 2016

Case:SECURITIES AND EXCHANGE COMMISSION, VS. EMILIO FRANCISCO; PDC CAPITAL GROUP, LLC; CAFFE PRIMO INTERNATIONAL, INC.

Jurisdiction:Federal District Court for the Central District of California

Status:Pending

Civil / Criminal:Civil

Breach of Contract

Defendant Emilio Francisco and his company Defendant PDC Capital Group, LLC, have engaged in an ongoing fraudulent scheme to defraud at least 131 investors in 19 different offerings out of at least $9.5 million, beginning in January 2013 and continuing at least through September 2016. Francisco and PDC Capital made offerings in assisted living facilities, Caffe Primo restaurants, and a packaging facility, primarily to investors in China, that purportedly qualify under the “EB-5 Immigrant Investor Program” administered by the U.S. Citizenship and Immigration Service (“USCIS”). Defendants raised approximately $72.05 million from the 131 investors, consisting of approximately $65.5 million in capital contributions to purchase units in limited partnerships, and $6.55 million in “administration fees” to pay expenses of the limited partnerships until the projects were built.