EB-5 Investment Fraud Scam reaches Federal Court in California

EB-5 Investment Fraud Scam reaches Federal Court in California

Chinese Investor Bilked out of $1.5 Million in EB-5 Investment Fraud Scam

A Chinese investor appeared in federal court in California last week, claiming she was defrauded of $1.5 million as a part of an investment program designed to provide temporary (and eventually permanent) legal residence in the United States through the government’s EB-5 investor visa program.

Shuting Kang accused California-based Shengrun International Industry Group Inc. and Sino-USA Entrepreneur Association Inc. as well as Sophie Harrison, of cheating her and her son with promises to get temporary green cards in exchange for various loans and an investment in a proposed Oakland residential real estate development under the name “229 Project”.

After investing the money, Kang found out that the 229 Project was “bogus,” and that Harrison spent Kang’s money for her own personal benefit.

EB-5 Investment Fraud Scam Discovered After Personal Visit

Harrison met personally with Kang, who told her that she and her son could obtain green cards within two years in exchange for a $500,000 investment and $8,000 immigration services fee. Harrison urged Kang to wire money in various amounts, while being urged to not question the process.
After an extended period of silence from Harrison, Kang had a friend visit the site in September 2015, only to discover that the 229 Project was an empty piece of land. Harrison then told Kang that the project ran into problems and the money was gone. Harrison did not complete the immigration paperwork or refund Kang’s money.

Scammer Had Many Aliases

Harrison also had several aliases, including Sophia Wang, Xianqin Wang Harrison, Xianqin Wang, and Xueqing Wang.

Did You Invest with Harrison or Shengrun International Industry Group?

If you invested with Harrison or have been the victim of another EB-5 investment 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 securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerages firms for their wrongful actions.

With offices in Los Angeles, New York, West Palm Beach and Miami, their class action attorneys represent clients nationwide and can help you recover your investment.

Contact an attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

California Couple Charged with Securities Fraud in $25 Million EB-5 Investment Scam

A Los Angeles-area couple has been charged with securities fraud in a $25 million EB-5 investment scam. The couple defrauded Chinese investors out of $25 million after telling investors that their money would be used to build a cancer center, named the Pacific Proton Therapy Regional Center. The couple told investors that their investment would make them eligible for a visa under the government’s EB-5 immigrant investor program.

Reportedly, at least 50 investors gave money to Charles Liu and his wife, Xin “Lisa” Wang to invest in the Pacific Proton Therapy Regional Center, yet no construction took place at the proposed site, even after 18 months. Instead, approximately $11 million went to three marketing firms in China (one of which Liu is chairman and CEO of) and the other $7 million went into Liu’s and Wang’s personal accounts.

Under the EB-5 program, investors are eligible for a two-year work and residency visa, with potential for a permanent visa, after investing at least $500,000 in a commercial enterprise in the U.S.

The judge in this case has issued a temporary restraining order freezing the couple’s assets and prohibiting them from raising any additional funds. Liu and Wang have been charged with fraud in the sale of securities and fraud in connection with the purchase or sale of securities.

Call a Los Angeles Securities Fraud Attorney Today

If you invested with Liu or Wang or their Pacific Proton Therapy Regional Center, you may have certain legal rights that require your immediate attention.

Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.