SEC just filed a lawsuit against a Chinese couple, Charles Liu and Xin (Lisa)Wang(wife) in Southern California, charging the couple of stealing 50 Chinese investors' money. The regional center sold EB5 investment to build "cancer treatment center". The SEC complaint alleges that the couple and other defendants owned or controlled by the couple misappropriated or diverted approximately $17.4 million from the accounts where the contributions were deposited. Liu misappropriated at least $6,285,000 for himself, and his wife and co-defendant, Wang, misappropriated at least $1,400,000. Liu also transferred over $11,845,000 to three marketing firms in China, including $3,500,000 to a firm of which Wang is CEO and chairman of the board. Liu also allowed most of the Administrative Fees to be used for undisclosed purposes. As a result, the EB-5 eligible cancer treatment center that the defendants represented would be constructed with investor funds has not been built. Liu and Wang have carried out this fraud through a number of entities, three of which are named as defendants.
It is shocking to see that more and more fraudulent regional centers have been exposed in the past year. EB5 investors, most of them Chinese investors, have been subject to such horrific fraud. They will certainly lose some or all of their $545,000 and their immigration benefits.