The U.S. Securities and Exchange Commission has urged a California federal judge not to allow two companies to ditch its suit accusing a businessman of misappropriating funds raised through the EB-5 immigrant investor program, saying the agency has already shown how each company he controlled was responsible.
The SEC in January accused Thomas M. Henderson and companies under his control, including Comprehensive Care of California LLC and Comprehensive Care of Oakland LP, of mishandling at least $9.6 million in EB-5 investments for personal gain, such as purchasing a home and building two restaurants. The CompCare companies asked for dismissal in early April, saying the SEC had only made a case against Henderson, but the agency on Wednesday said its suit was also clearly against the companies.
“The complaint plainly alleges the ‘who, what, when, where and how’ of the fraudulent conduct by the CompCare defendants,” the SEC said.
The SEC said that U.S. District Judge Richard Seeborg had already rejected CompCare’s argument in March when he issued a preliminary injunction barring Henderson and his companies from issuing securities or destroying documents.
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