16 more Chinese investors sue developer, lender over Vail condo project Solaris
The condo Solaris in Vail.
Sixteen more Chinese nationals who invested in a high-profile condo project in Vail in exchange for a green card have sued the developer and the entity through which their money was funneled.
The lawsuit filed this week by the individuals, who each put up $500,000 toward the Solaris development part of the federal government’s EB-5 Immigrant Investor Program, largely mirrors one collectively filed by 13 other investors last month.
Between the two lawsuits, 29 individuals are now accusing Solaris developer Peter Knobel and the Colorado Regional Center, which helped facilitate the investment, of fraud.
“Defendants structured a complicated scheme to induce Chinese investors to fork over approximately half a million dollars each,” the latest lawsuit reads. “This scheme financially benefited all but the EB-5 Investors.”
Knobel and the Colorado Regional Center did not respond to a previous request for comment from BusinessDen. After the filing of the first lawsuit, however, Knobel issued a statement to the Vail Daily, calling the lawsuit “meritless” and its allegations “legally and factually incorrect.”
The 29 investors who are suing Knobel and the Colorado Regional Center are among approximately 160 who collectively put up $80 million toward the development. The individuals have received their green cards and now live in the United States.
Both lawsuits state that Knobel effectively repaid the $80 million loan by giving the investors 19 condos within the structure. The lawsuits allege the condos — the vast majority of which have not sold, despite being listed — are not worth $80 million, and that the loan was significantly undercollateralized.
The plaintiffs in the latest lawsuit, filed Monday in federal court in Denver, are represented by Hubert Kuo of Ardent Law in Newport Beach, California.
The plaintiffs in the first lawsuit are represented by Chicago-area attorney Douglas Litowitz.
Litowitz said in a Wednesday email that he believed the latest lawsuit may be consolidated into the one he filed.
- Yi Liu, Zhongzao Shi, Jie Yang, Shunli Shao, Sheng Fang, Kaiyuan Wu, Zhijian Wu, Yuquan Ni, Li Fang, Yuwei Dong, Qi Qin, Zhingwei Li and Jun Li vs Colorado Regional Center
Subscribe for News
Join Professionals on EB5Projects.com →
This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.