Path America founder Lobsang Dargey and others are asking a federal judge to reject a court-appointed receiver’s proposal to sell the unfinished Potala Tower in downtown Seattle, which was financed by overseas investors seeking EB-5 visas.
Dargey, who is accused by federal regulators of fraud, lost control of his Everett-based company Path America in October, when a federal judge handed the keys to receiver Michael Grassmueck.
Grassmueck has told the court he intends to sell the 40-story Potala Tower project, now just a deep hole in the ground at 2116 4th Ave., as soon as possible. That could dash the hopes of about 170 Chinese nationals who invested $500,000 each in the project, aiming to obtain permanent residency in the United States through the EB-5 visa program.
At least 15 of those investors asked the court Tuesday to deny the receiver’s request or require that the project be sold to a buyer who will complete the project as originally envisioned — a 344-unit apartment complex atop a 142-room hotel.
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