Lela Goren and Gary Barnett and One Manhattan Square
Once again, claims of fraud have surfaced in the world of EB-5 lending.
This time, the development giant Extell Development and its founder Gary Barnett have been accused of fraud by its former regional center executive, who is seeking $65 million in damages.
A summons filed Monday in New York State Supreme Court by developer Lela Goren claims that Barnett and the Extell New York Regional Center breached their fiduciary duty and engaged in fraud. Until recently, Goren worked as the regional center’s director, and had a 20 percent stake in the entity, the lawsuit claims. Barnett held a 65 percent stake in the entity, and investor Eli Cohen had a 15 percent stake, which he sold to an unknown buyer in 2017, according to court filings.