- Investors were told that money they invested in U.S. EB-5 Investments LLC would be used for real estate development including a mixed-use commercial project planned for the City Center in Port St. Lucie, Fla.
- Zhong and EB5 Asset Manager diverted approximately $900,000 of those funds for unrelated personal uses that also included her own real estate taxes as well as education expenses for her family members.
- Zhong and EB5 Asset Manager also made misrepresentations to investors about the use of U.S. EB-5 Investments’ funds and failed to disclose Zhong’s past failed real estate venture.
- Investors were falsely told that U.S. EB-5 Investments would prepare and provide unaudited financial reports to investors.
- Zhong and EB5 Asset Manager falsely claimed that certain investors’ funds would be held in escrow until the form filed by potential EB-5 investors to petition the U.S. Citizenship and Immigration Services (USCIS) for immigration status received that agency’s approval.
- Zhong and EB5 Asset Manager also made material omissions and false statements about conflicts of interest, and made false statements about the location of real estate development projects.
The SEC’s continuing investigation is being conducted by Shelly-Ann A. Springer-Charles and Margaret Vizzi in the Miami office, and the case is being supervised by Eric R. Busto. The SEC’s litigation will be led by Alejandro Soto. The SEC appreciates the assistance of the USCIS.