A California federal judge has denied a bid by two companies to ditch a U.S. Securities and Exchange Commission suit accusing a businessman of misappropriating funds raised through the EB-5 immigrant investor program, saying the SEC’s allegations also target the companies.
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 in April argued that the SEC had only made a case against Henderson, but U.S. District Judge Richard Seeborg on Monday said they were also included in the SEC’s allegations.
“Compcare’s argument … is premised on disregarding the extensive allegations of conduct undertaken by defendant Thomas Henderson in connection with, and as a manager of, Compcare,” Judge Seeborg said.
The suit alleges Henderson, 68, used Compcare and other companies under his control to commingle funds from the EB-5 projects to "mask" the true sources of the funds, according to the SEC.
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