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.
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