A California federal judge denied the efforts of two California-based companies to avoid the Comprehensive Care EB-5 Fraud Suit. The lawsuit was brought by the U.S. Securities & Exchange Commission (SEC), accusing a businessman of misappropriating funds raised through the increasingly popular EB-5 immigrant investor program.
SEC Files Suit Against Comprehensive Care
The SEC accused Thomas Henderson and his two companies, Comprehensive Care of California LLC and Comprehensive Care of Oakland LP, of mishandling nearly $10 million in EB-5 investments for personal gain, purchasing a home and building two restaurants with the proceeds.
The companies argued that the SEC’s fraud claim was aimed at Henderson alone, but the judge disagreed, stating that Henderson used his companies to “mask” the true source of his funds.
Henderson raised more than $115 million from approximately 215 investors, most of whom were Chinese nationals. Each contributed at least $500,000 to fund one of seven projects. Instead of the money going strictly to the projects, Henderson is accused of commingling investor assets with company assets, using funds to purchase a $1.4 million home in Oakland, $3.8 million to build and operate two restaurants, and $5.1 million for other unrelated business ventures.
As a result of the court’s ruling, the case will proceed against both Henderson and his two companies.
About EB-5 Investments
EB-5 investments have grown in popularity for investors abroad seeking legal residence in the United States. By investing at least $500,000 (or by meeting other factors), the investor can qualify for temporary residence that can lead to permanent residence after a period of time.
Do you think you have a claim for the Comprehensive Care EB-5 Fraud Suit?
If you invested with Thomas Henderson, one of his projects, or have been the victim of another EB-5 fraud, contact an experienced investment fraud attorney today.
Call an Investment Fraud Attorney Today
If you are looking for an attorney to review your rights and options, the attorneys at Dimond Kaplan & Rothstein, P.A. have helped investment fraud victims throughout the United States and recovered millions for those investors.
With offices in Los Angeles, they have helped stockbroker fraud victims throughout Brentwood, Santa Monica, Hollywood, and West Hollywood.