Embattled real estate developer Lobsang Dargey has dropped his fight against a federal lawsuit accusing him of defrauding investors and misusing their money.
The proposed settlement with the U.S. Securities and Exchange Commission puts Dargey on the hook for nearly $18.4 million and prohibits him from having any role in the issue, offering or sale of certain securities. The motion was filed Thursday in U.S. District Court in Seattle. It requires approval by U.S. District Judge James Robart to take effect.
Dargey also faces as much as 10 years in federal prison after pleading guilty in January to criminal charges of wire fraud and misleading U.S. immigration officials. He also agreed to pay back more than $24 million to 282 investors.
Both the criminal and civil cases came from his use of foreign investors to bankroll his meteoric rise as a real estate developer in Everett and the Seattle area, including Kirkland.
If Dargey pays the $24 million to investors and hands over ownership of his real estate holdings to a court-appointed receiver, he will not have to also pay the $18.4 million he is liable for in the civil case, according to the proposed settlement.
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