A California federal judge ruled on Thursday that a husband and wife netted in an EB-5 investor scheme must pay back nearly $27 million that they owe investors for planning a cancer treatment center that they never built.
Judge Cormac J. Carney said in a final judgment that he was granting the Securities and Exchange Commission’s motion for summary judgment, finding Charles Liu and Xin Wang liable to disgorge the investor funds and ordering Wang to pay a civil penalty of about $1.5 million
In May, the SEC accused Liu and Wang of collecting millions from about 50 Chinese investors for a cancer treatment center that they didn’t build, instead funneling about $20 million to other accounts. Judge Carney agreed the couple didn’t uphold their end of the commitment they made to investors.
“Despite significant investment, nearly no construction on the proton therapy center has taken place. Instead, Liu burned through the millions left after payments to himself, Wang, and the marketers on half-hearted attempts to convey the illusion of progress,” according to the ruling.
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