The U.S. Securities and Exchange Commission on Wednesday accused a Washington, D.C.-based development company and its president of using the EB-5 immigrant investor program to scam foreign investors out of $14.5 million.
Aero Space Port International Group Inc. and its president, Andy Shin Fong Chen, promised U.S.-resident hopefuls that their investments would go toward a development project linked to the EB-5 program, despite using the funds for luxury car payments, personal stock trading and operations for other companies, the SEC alleged.
“Defendants’ representations that they...would use…investors’ funds to create jobs that could support applications for permanent U.S. residency were materially false and misleading because Chen used investors’ money to benefit himself, his family and his other businesses,” the SEC said.
Chen told investors their funds would go toward the development of a Washington property known as the ASPI Commerce Park, the SEC said. This project was linked to a company that was part of the EB-5 program, which allows foreigners to obtain green cards if they invest $500,000 in a project that would create at least 10 jobs for U.S. workers in a certain type of area, according to the complaint.
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