New Immigration Investment Lawsuit Against Golden California Regional Center

There are a number of ways to obtain a green card in the United States, such as being the spouse of a U.S. citizen or qualifying through employment. However, the country also has a provision first introduced in 1990 that allows a foreign individual to be eligible for a visa by making a significant investment that is aimed at stimulating job development, with the goal of also becoming a U.S. citizen.

On August 26, 2020, a group of Chinese investors at Silicon Valley suing Golden California Regional Center and its owner Bethany Liou for fraud and for misappropriation of the investment fund. The suit claims that a group of Chinese nationals each invested $550,000 five years ago to the center in exchange for green cards, in effect also becoming limited partners of the center. However, according to the plaintiffs in the filing, the funds were used in "bad faith" and they were never offered a return of the funds upon completing the five-year program project requirements. While the minimum investment at the time was $500,000, each plaintiff also paid a $50,000 "administrative fee" according to the case file.

As the plaintiffs in the case make up the entire limited partnerships of the center, they have the ability to vote to dissolve GCRC Rose Island and thus have their funds returned, along with any interest that they would have accrued since the investment. However, the defendants have refused this request. In addition, the applicants have withdrawn their immigration petitions which should lead to the return of their funds, which did not happen.

According to the filing, GCRC Rose Island used the funds raised through the plaintiff's investments to complete a real estate project that was aimed at creating 10 or more full-time positions, which is a requirement of the program. When they received no information regarding the status of their investment, they turned to a "more formal procedure," including a demand to inspect the books of the GCRC Rose Island as well as to dissolve the partnership, which was not complied with according to the case file.

The complaints listed in the filing note that the plaintiffs have suffered financial loss to be proven at trial, but they have also endured "stress, anxiety, sleeplessness, worry, anguish, and nervousness" as a result of the ongoing situation. The filing also claims that the defendants contacted the plaintiffs individually to demand they stop seeking repayment.

Not only did the defendant allegedly misappropriate the investments, but also the chance of securing a green card and a new life in the U.S. have disappeared for the investors.

Judgement Sought by Plaintiffs

The plaintiffs are seeking no less than $3,850,000 along with 10% interest per year, but the actual damages will be determined at trial, according to the filing. They are also looking for general damages related to their emotional distress, as well as seeking an award for legal fees.

This is not the only case of its kind pending before the courts. The complaints cites that the SEC ordered the defendant to pay back approximately $50 million in real estate investments related to a "GCRC Cupertino Fund", which also offered limited partnerships for $500,000 with a $50,000 administrative fee. It was alleged that instead of transferring funds to a developer for a mixed-used development that included a hotel, they were transferred to an individual and used as collateral on personal lines of credit.

"The evasive actions of Defendants toward Plaintiffs, combined with the information Plaintiffs have uncovered about other pending lawsuits and allegations against Defendants...have confirmed Plaintiffs’ worse fears: that Plaintiffs’ funds have been misappropriated, and Defendants continue to fraudulently conceal their conduct to Plaintiffs’ detriment," reads the filing relating to GCRC Rose Island.

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