90 Chinese Investors Get $49 Mln Back After EB-5 Visa Fraud Charges Settled
I posted an interview four months ago with American immigration consultant Steve D. Albert about what he termed “rampant fraud” in the EB-5 visa program that provides overseas investors with a path to apply for a U.S. permanent residence.
Last week, Chinese investors whose EB-5 investment funds were misused in Texas received some good news from the Securities and Exchange Commission: The U.S. securities regulator announced on Dec. 12 that three Houston-area developers have agreed to settle charges that they misused investor funds raised from 90 Chinese investors under the EB-5 Immigrant Investor Program on unrelated projects.
The three developers – America Modern Green Senior (Houston) LLC, America Modern Green Community (Houston) LLC, and America Modern Green Residential (Houston) LLC – have repaid the $49.5 million that they raised from the Chinese investors, the SEC said.
The developers told investors that their funds would be used exclusively for a large mixed-use real estate development EB-5 project, the SEC said. Instead, the SEC found that the developers improperly transferred $20.5 million of investor funds for various undisclosed and improper purposes, including funding purchases with respect to two unrelated real estate projects.
“These developers obtained almost $50 million from investors in connection with an EB-5 offering that was based on misleading statements and involved a misuse of the funds raised,” said Shamoil T. Shipchandler, director of the SEC’s Fort Worth Regional Office. “Today’s resolution provides full relief to all of the affected investors.”
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.