FREE Sign upLogin
Feds wrest control of Everett developer's company

Feds wrest control of Everett developer's company

Company was developing year-round farmers market site in Everett; CEO accused of fraud

A federal judge late last week stripped developer Lobsang Dargey of control of his company Path America, which is building a large project in Everett, placing control in the hands of a third party. 

The judge’s order allows a third party called a receiver to assess the situation and also potentially attempt to untangle assets. 

Path America is building the Potala Place apartment-and-retail high rise in Everett at the corner of Rucker and Grand avenues as well as a prominent 40-story tower in Seattle. 

Dargey, once a darling in Everett, faces fraud accusations by the U.S. Securities and Exchange Commission (SEC) of misappropriating $17.6 million Path America raised from primarily Chinese investors toward projects such as Potala Place in Everett. The money came through the EB-5 VISA program, which is a program aimed to let foreign investors give U.S. projects large amounts of cash in exchange for green cards. 

The SEC filed its lawsuit Aug. 25 alleging that Dargey and his network of companies misappropriated approximately $17.6 million in foreign investment funds intended for the Everett and Seattle tower projects and sending the money to other projects not qualified for foreign investments, such as his Potala Village Kirkland project. The SEC also says Dargey misappropriated $2.5 million to buy a luxury home in Bellevue and also withdrew thousands of dollars worth of investors’ money at casinos. 

The SEC’s filing shows that most of the misappropriated money was sapped out of the funds for his Potala Tower high rise project in Seattle. 

The Seattle Times reported the judge’s order does not affect Dargey’s control of the year-round farmers market inside the Everett project — a company Dargey has a hand in called Potala Farms. 

The receiver is Michael Grassmueck of Portland, who is a founder of The Grassmueck Group. His company handles corporate insolvency and bankruptcy trustee work in Washington and Oregon, and has worked repeatedly with the SEC as a receivership.


http://www.snoho.com/stories_2015/102815_Feds_strip_control_of_Dargeys_company.html

Mentions

Litigation Cases

States

  • Washington

Subscribe for News

Site Digest

Categories


Securities Disclaimer

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.