A group of Chinese nationals have filed an EB-5 investor lawsuit in a California state court against a California attorney and her father. The claim states that the Chinese nationals were “victims of a fraudulent scheme” that promised them visas in exchange for investments in the EB-5 program.
The claim, filed by Yeqing Xia, Rui Zhang, Song Yao Li and Ting Li, alleges that the plaintiffs were solicited in 2011 to apply to the EB-5 visa program by attorney Victoria Chan and her father. To qualify, they each handed over more than $500,000, not including attorneys’ fees.
The four plaintiffs are among more than 100 Chinese nationals allegedly solicited in the EB-5 investor scheme.
EB-5 Investors Caught in $50M Scam
The attorney, Victoria Chan, and her father, Tat Chan, have been accused by the FBI of exploiting the EB-5 immigrant investor program. Federal authorities allege that the Chans stole millions of dollars from investors, spending the money on personal property purchases and expenses. The allegations suggest that the Chans defrauded EB-5 investors of $50 million over the course of nearly a decade.
Government prosecutors have filed nine property forfeiture actions against the Chans. According to Law360, the nine properties involved in the forfeiture actions total more than $30 million. One of them is a commercial property in the City of Industry worth more than $3 million and a $707 million parcel of land in Rancho Cucamonga.
The government also accuses the Chans of redirecting business funds for personal gain. Their business was registered as the California Investment Immigration Fund LLC (CIIF).
Fraudulent CIIF Scheme
According to documents filed, the Chans launched their EB-5 scheme nine years ago. Victoria Chan submitted a request to designate her organization, the California Immigration Investment Fund (CIIF), as a regional center to the United States Citizenship and Immigration Services office. The request was approved.
U.S. operations for the company were run by Victoria Chan out of the San Gabriel Hilton Hotel while her father Tat led the Chinese side in Guangzhou, a city in southern China.
According to the FBI affidavit, the CIIF had at least 14 affiliating companies and service providers. In reality, the CIIF regional center was staffed with high schoolers who were paid to pose as full-time employees.
In addition, FBI agents found that supposed developments were not actually in progress, and to date, nothing had been built. Despite this, some of the CIIF investors seemingly obtained visas and green cards. The investigation is ongoing.
The EB-5 Program
The EB-5 visa program offers green cards to foreign citizens who invest in American businesses. The program centers around a “regional center,” which acts as an intermediary between the developers and investors. In exchange for investments, EB-5 investors are promised U.S. visas and green cards.
Typically, regional centers charge developers between 5 and 8 percent of the total capital raised, charging each investor an administrative fee of $25,000 to $60,000 on top of the $500,000 minimum commitment they are making to the project.
Are You Caught in an EB-5 Investor Scam?
If you invested with the Chans or think you may be involved in an EB-5 investor scam, you may have certain legal rights that require your immediate attention.
Call an Investment Fraud Attorney Today
If you are looking for an attorney to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from for clients for wrongful actions.
Contact an attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.