Another Embezzlement and Three Other Developments in EB-5 Land

CENTER FOR IMMIGRATION STUDIES — Over the last few days yet another EB-5 swindle has emerged, along with three other developments in the world of EB-5 investor visas.

The latter three might be described as a deadlock in an unfortunate location, a small victory, and a deck stacked by the EB-5 program.

Swindle. The latest EB-5 scandal involves the all-too-familiar ingredients of Chinese-American middlemen being sued by Chinese aliens for embezzlement over an urban real estate venture. Ten Chinese investors have sued the brothers Chan (Terry and Gary) and a number of other players for misusing and wasting $5 million in EB-5 funds, plus $450,000 in fees.

There was supposed to be a nine-restaurant development in Cincinnati, but the moneys were spent, according to the complaint (1:15-cv-00790-SSB-SKB in the PACER system of court records), on other real estate and on useless salaries for members of the defendants’ extended families. The 10 aliens said that they not only lost their money, but that their applications for green cards were rejected because their investments did not produce a project.

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