The investors are appealing a trial court decision that protects the law firm that prepared the private offering memorandum for their investment. They maintain the firm either knew of or should have known that the supposed investment in the southern California cancer treatment center was a scam.
54 Chinese nationals invested in the Pacific Proton EB-5 fund, which they were told would pay for the construction and operations of a southern California cancer treatment center. Instead, the regional center’s founder, Charles Liu, and his partner, Dr. John Thropay, misappropriated $21.1 million of the investor capital. The center was never built. The Securities and Exchange Commission (SEC) ordered that Liu and his wife pay back the investors’ money and also pay $8.2 million in penalties; the couple were also barred from ever working in EB-5 again. This decision was appealed but affirmed.
Read more by clicking below image