Contrary to defendant’s wish, judge says fraudulent developer needs receivership supervision

EB-5 News

Date

Dec 23, 2021

Category

Fraud

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A development company, Aero Space Port, that fraudulently raised over $14.5 million of EB-5 money, doesn’t want a receiver to oversee its assets. But a Washington judge thinks otherwise due to the defendant’s “reckless conduct…mismanagement of investors’ money” and constant attempts to control the business through third parties. The company president, Andy Chen, used $6.5 million of the EB-5 capital to pay for his BMW and give loans to relatives. Law360 article (subscription required)

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