Tag: EB-5 Visa Fraud

EB-5 Investment Fraud Scam reaches Federal Court in California

EB-5 Investment Fraud Scam reaches Federal Court in California

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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.

Close up of United States Visa.

California Couple Faces Contempt Over EB-5 Securities Fraud Claims

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A couple involved in securities fraud relating to an EB-5 immigrant investor program for a cancer treatment center was ordered by a California federal judge to explain why they hadn’t followed the court’s order to repay nearly $27 million to investors or face contempt charges.

In September 2016, the U.S. Securities & Exchange Commission (SEC) won its bid to get husband and wife Charles Liu and Xin Wang to turn over money raised from at least 50 investors despite their claims that they could not come up with the money. Liu and Wang raised the money from proposed investors to construct a cancer treatment center in 2014 – 18 months later no construction had taken place at the designated site.

The couple was ordered to show cause as to why they shouldn’t be held in civil contempt after failing to comply with orders to answer questions regarding their finances and failing to respond to the SEC’s interrogatories. Instead of using investors’ money for its stated purpose, Liu was accused of transferring $11 million to three marketing firms in China, including one where he is the CEO and chairman. An additional $7 million went into his and Wang’s personal accounts. According to the SEC, Liu also told Chinese press that he’d pocketed some of the money.

Liu and Wang solicited investments through the government’s EB-5 program, in which investors invest at least $500,000 in a commercial enterprise. As part of the program, investors become eligible for a two-year work and residency visa and the potential for permanent residency in the United States. We reported about this EB-5 Securities Fraud earlier here.

The couple’s funds were frozen by the court in June, along with those of three corporate defendants, all of whom were a part of the failed cancer treatment project: Beverly Proton Center LLC, Pacific Proton Therapy Regional Center LLC and the Pacific Proton EB 5 Fund LLC. The SEC is seeking to hold these companies in contempt for failing to allow access to their corporate books.

Call a Los Angeles Securities Fraud Attorney Today

If you invested with Charles Liu or Xin Wang or think you may be involved with a case of EB-5 Securities Fraud, believing that your investment would help secure you a visa to the U.S., 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.

Image of a Visa within a passport.

EB-5 Fraud Victims Sue California Bank Holding Their Investments

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Several foreign investors sued Los Angeles-based attorney and money manager, Justin Moongyu Lee, after finding out their money was not being used to secure entry to the United States through the government’s EB-5 visa program. Now, investors also are suing the bank where Mr. Lee kept investors’ funds for related to the EB-5 Fraud.

Several Korean nationals are suing Wilshire Bank for fraud, negligence, and breach of contract, claiming that the bank should have recognized Mr. Lee’s fraudulent activities and stopped him from furthering his scheme.

According to investors, Wilshire Bank had a long relationship with Lee, including employing a relative – information that was never disclosed. Investors are also alleging that because of Lee’s close ties to the bank, he was able to improperly transfer money out of investors’ escrow accounts.

As far back as 2006, Lee told his investors that their money would be used to build biofuel plants in Kansas and Texas. When the market tanked and clients did not receive their green cards, the lawsuits began piling up starting in 2010.

The California Bar Association instituted disciplinary proceedings against Lee in 2013, and he was sued by both the SEC and Justice Department in 2014. According to the Justice Department, Lee used some of the money he received to pay back earlier investors from another failed venture instead of putting it into biofuel plants.

Investors believe the bank should have prevented this misappropriation of funds by safeguarding their escrow accounts. Instead, their money was transferred out of escrow in random sums while the investors awaited their preliminary check with the U.S. Customs and Immigrations Services.

Call a Los Angeles Securities Fraud Attorney Today

If you invested with Mr. Lee or Wilshire Bank and are a victim of EB-5 Fraud 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.

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

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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.