Investors in EB-5 Project To Receive $1.65M in Damages

Developers in the project, based in Chicago, must pay the EB-5 project investor group damages. Developers broke an agreement with investors by failing to pay the class action’s settlement in time. Magistrate Judge Young Kim recommended that the investors collect their money personally because the loan used in the settlement was found to likely be fraudulent: the lender that the property development company was purportedly using was said to be located in the United Arab Emirates, but documents received by the developer were forged.

Developers involved in a Chicago construction project owe $1.65 million to their investors for breaching a settlement. Each defendant involved in Dou et al. v. Carillon Tower/Chicago LP et al., plus one additional project principal, must pay $1.5 million in damages plus $150,000 in attorney fees. Judge Charles Kocoras ordered that the $1.5 million portion cannot be reconsidered, since two project principals signed guarantees last year to pay these liquidated damages.

The investors involved in the case include Chinese nationals who invested in the project in 2015 and 2016, and who applied to the EB-5 visa program. This program allows foreign nationals who make job-creating investments to apply for green cards. The project, Carillon Tower, was supposed to be a 42-story building on Chicago’s Magnificent Mile that would include hotel rooms, condos, and more. Due to approval delays from the city, historical preservation complications, and pushback from locals regarding construction, the project’s progress was limited. Project developers reached an agreement that each investor would receive their initial investments back, plus an additional $50,000, bringing the total to $550,000 per investor.

Investors pushed for access to information regarding the project principals’ personal finances, which was granted to them by Judge Korocas. The case’s special master is expected to report this week about whether the defendants and their attorneys knowingly lied about the loan from the UAE.

If you have questions about the EB-5 visa program or any other immigration-related issue, contact us at ILBSG. Our extensive experience combined with our personal attention to each client helps our clients get the right advice.

Source

Leave a Reply

Your email address will not be published.