May 26, 2020

SEC Files a Complaint and TRO against Seattle Developer Alleging Misuse of EB-5 Funds

Recently, the SEC filed a civil action and a motion for a temporary restraining order (“TRO”) against a well-known Seattle EB-5 developer.  The SEC alleges, inter alia, that a developer used funds from one EB-5 project for other projects under his control without informing investors. In addition, the SEC claims that the developer used investors’ funds to purchase a home and make cash withdrawals at casinos.  The TRO, which was granted by the court the same day it was filed, would freeze the developer’s accounts until the matter is adjudicated. There have been several high-profile EB-5 related matters brought by the SEC this year.  The SEC’s complaint and TRO can be found here.

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About this Author

William B. Mack, Greenberg Traurig Law Firm, New York, Finance Law Attorney
Shareholder

William B. Mack is part of the firm’s government affairs and financial regulatory and compliance groups. He is experienced in advising companies on regulatory and compliance matters relating to the Securities and Exchange Commission regulations, the Exchange Act, Anti-Money Laundering laws and Financial Industry Regulatory Authority (FINRA) rules.

William’s practice involves all aspects of broker-dealer regulation, including Self-Regulatory Organization (SRO) membership, supervision, employment, research, soft dollar arrangements, chaperoning of...

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