SEC Announces Asset Freeze against Alleged EB-5 Fraudster (with Lofchie Comment)

The SEC announced that it obtained an asset freeze against an issuer of an EB-5 program investment offering. The issuer is accused of defrauding Chinese investors who sought to attain U.S. residency by investing in his companies through the EB-5 Immigrant Investor Pilot Program.

Lofchie Comment: Any firm that touches an EB-5 program should treat it as a high risk. A disproportionate number of fraud violations have occurred in connection with EB-5 programs and the regulators have signaled that they are paying close attention.

See: Press Release.