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New York Investment Firm Alleges Developers Committed EB-5 Fraud

Aug. 30, 2018

There have been many projects completed in New York through the use of investments from companies that are affiliated with the EB-5 visa program. In most cases, the project is developed on time, and the foreign investors are assured of their rights to apply for a visa and seek permanent residency. Unfortunately, there have been situations where the developers committed EB-5 fraud, and both investors and loan companies are left to try and recoup their losses.

Recently, Advantage America EB-5 Group, which is based in Manhattan, filed a lawsuit against a development company. It alleges that it loaned the developers $5 million in 2015 for a condominium project that is now in default. The investment firm is associated with the EB-5 visa that allows foreign nationals to invest a minimum of $500,000 in exchange for the right to obtain a green card. The investment company is seeking repayment after alleging that the loan has been in default since last year.

While the case seems straightforward, it has become much more complex since the developers are also being sued by three other entities on allegations of fraud. Each of these lawsuits are seeking to push the developers into Chapter 7 liquidation bankruptcy in order to recoup their own losses. To make the situation worse, another company filed a similar petition several days prior, requesting the same action.

The case becomes even more complicated after allegations have been made concerning the apparent involvement of another foreign national who is purportedly now associated with the developers responsible for completing the condominiums. The lawsuit filed by Advantage America does not include the name of this individual, and it is unclear how this case will proceed. Any individuals currently residing in New York who are concerned that they have been a victim of EB-5 fraud are entitled to seek the assistance of an attorney to help safeguard their rights and immigration status.