SEC to freeze assets after allegations that an Inland physician and partner ‘siphoned off’ $10 million from Chinese investors seeking a green card.
Federal authorities are seeking to freeze the assets of a San Bernardino doctor and office manager accused of illegally diverting half of $20 million they raised from Chinese investors hoping to qualify for an immigration program.
In a Nov. 19 filing in Riverside federal court, the Securities and Exchange Commission states that Dr. Robert Yang, 45, of Redlands and the administrative manager of his medical practice, 45-year-old Claudia Kano of Pomona, secured funds from 40 investors hoping to immigrate to the U.S.
Court documents say Yang and Kano persuaded them to invest by touting a program that issues visas to immigrants who make significant investments that create jobs. But the civil complaint alleges “Yang and Kano repeatedly siphoned off investor funds.”
As a result, specialized nursing home projects in Fontana, Hesperia and the Los Angeles County community of Lynwood – all marketed under the name Suncor – are stalled, the civil filing states.
“The Suncor projects are years behind schedule,” the complaint states. “As of today, none of the projects is operational and they may never be completed.”
And the Chinese investors won’t be able to take advantage of the visa program because of $10 million in alleged diversions by Yang and Kano.
“In fact, their misappropriation and misuse of investor funds rendered the investments ineligible for the EB-5 program,” court documents say.
OVERSEAS MONEY
In a companion filing, the SEC claimed the “defendants continue to control over $2.5 million of liquid investor funds.” And the SEC moved to freeze assets of Yang, Kano and several of their corporate entities, including Suncor Fontana, Suncor Hesperia, Suncor Care Lynwood and Yanrob’s Medical, through which the medical practice operates.
In recent years, there has been growing concern about investment scams across the country. And the U.S. Citizenship and Immigration Services, which oversees the EB-5 program, has partnered with the SEC to halt such schemes.
In a response to the SEC’s move against the San Bernardino doctor, attorney Mark Hiraide of Torrance filed a notice on Nov. 20 that Yang and Kano would not oppose the freezing of assets. Attempts to reach Hiraide, Yang and Kano last week were unsuccessful.
Yang, owner of the Suncor entities, is licensed to practice medicine in California, according to the Secretary of State’s Office. And he operates a geriatric care practice in the Hospitality Lane area of San Bernardino at 406 E. Vanderbilt Way.
Besides managing his medical practice, Kano serves as senior vice president or manager of the Suncor entities.
The case has been assigned to U.S. District Court Judge Stephen V. Wilson of Los Angeles.
According to court documents, Yang had plans to build as many as five nursing homes at one point and those plans got started with the 2008 purchase of a site in Fontana at 7227 Oleander Ave.