Friday, July 29, 2016

Case of the Day: SEC v. Liu, 2016 U.S. Dist. LEXIS 91078 (C.D. Cal. July 11, 2016)


Defendants are Chinese businessmen and their corporations who operated a complicated immigration fraud scheme based on EB-5 immigration, which provides permanent residency (i.e. Green Card) to foreign investors who invest over a certain threshold amount. The defendants raised nearly $27 million from at least 50 Chinese investors, but no actual construction occurred that would serve as a basis for EB-5.

The court issued injunctions against individual defendants to freeze their assets, and ordered repatriation of assets from any third party that is holding the defendants' assets. The court also appointed a monitor over the defendant corporations.


Think immigration law is small potatoes? Thank again. With EB-5, immigration is a big business with potential for massive scale liability.

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