The EB-5 (immigrant investor) program took two body blows, neither well publicized, earlier this week, after taking a drubbing in a House Judiciary Committee hearing last week.
This week’s reverses both had bi-coastal angles. In the first, yet another EB-5 fraud case emerged in the state of Washington; it was announced (and denounced) by the Securities and Exchange Commission (SEC).
The latest EB-5 fraud is all too familiar. Like so many others, a U.S.-based person with a Chinese name, Andy Shin Fong Chen, was charged with having “fraudulently raised over $14.5 million from [presumably Chinese EB-5] investors” to quote the complaint, and that, in turn, was filed by the only cop on this beat, the SEC. (For the details, see the courts’ electronic filing system, PACER, at case 2:17-cv-00405.)
Chen’s alleged fraud, like the one involving the Jay Peak ski lodge in Vermont, used EB-5 investors’ money to, among other things “engage in personal stock trading, satisfy margin calls … [and] make lease payments on a luxury car.”
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