More than 20 Chinese EB-5 investors have filed a $13.4 million lawsuit against developers, immigration agents, and lawyers whom they accuse of duping them into putting placing more than $12 million of EB-5 funds into a casino-resort project in the Northern Marianas.
According to a report in IMI Daily, the lawsuit filed in New York State Supreme Court stated the defendants touted government backing on the project and offered misleading construction photos plus the promise of rapid EB-5 approvals. But in the years since the project’s planned 2016 start date, the casino-resort has yet to be built, and the plaintiffs did not receive EB-5 visas or a repayment plan.
The Northern Marianas is a US commonwealth in the Western Pacific Ocean, north of Guam and roughly 3,800 miles west of Hawaii. Under the Immigration and Nationality Act, the Northern Marianas is treated as part of the US for immigration purposes, thus enabling the same EB-5 investments and residency visas that would qualify on the mainland.
The plaintiffs accuse the defendants of fraud, breach of fiduciary duty, negligent misrepresentation, and diverting EB-5 funds. Among those named in the lawsuit are Xianjun Meng, managing director of the American Northern Marianas Regional Center and CEO of Bridge Investment Group LLC, and his partner Silvia Siu.
The plaintiffs are seeking restitution, damages, and removal of the defendants from control of the American Northern Marianas Economic Development Fund LLC.
