Developer says investors’ lawsuit should be dismissed after approving additional loans with top repayment priority

Nicholas Mastroianni II funded his Harbourside Project in Florida with $99.5 million in EB-5 investments. Disgruntled investors claim they were told their loans would have first repayment priority. Instead, the believe the developer converted $60 million of their capital to preferred equity and then paid a secret $60 million loan to a shell company. Mastroianni counters that the investors approved a status report and letter describing additional loans with top priority; he says such evidence was part of their green card applications.