Tentexkota LLC, Deadwood Investments, Marc Oswald, Dale Morris, Timothy Conrad, Michael Gustafson, etc,. vs Joop Bollen & South Dakota International Business Institute (SDIBI) & South Dakota Regional Center Inc.

Filing Date:November 08, 2016

Case:Tentexkota LLC et al vs Joop Bollen, SDRC

Jurisdiction:South Dakota State Court

Status:Pending

Civil / Criminal:Civil

Securities Violations

A company that provided financing for a Deadwood hotel and casino through South Dakota's embattled investment-for-visa program is trying to recover $32.5 million loaned to a group of developers whose company hasn't paid back the money for the project, according to a civil lawsuit filed this month. The financing company, which is managed by the former administrator of South Dakota's EB-5 visa program, is also asking a state court for interest and attorney's fees from Tentexkota LLC and its members. The group rehabilitated the historic Homestake slime plant into the Deadwood Mountain Grand resort, a luxury hotel with nearly 100 rooms and 210 casino games. Eight members of Tentexkota guaranteed the two loans for $28 million and $4.5 million, which came from immigrant investors through the federal EB-5 program. The program allows people to seek U.S. residency if they invest at least $500,000 in approved projects. The civil complaint says the $32.5 million loaned to Tentexkota for the hotel and casino was due in April 2015 and extended until May 2016, when the company defaulted. The lawsuit comes from the financier, SDIF Limited Partnership 2, which is managed by Joop Bollen, who oversaw the EB-5 program as a public employee and as part of a private company that he founded. Meanwhile, Tentexkota members, including country artist W. Kenneth "Big Kenny" Alphin, and other businesses filed a competing federal civil suit recently against Bollen and his limited partnership arguing the guarantees they signed should be voided because they violate federal law.