Houston-area developers settle with SEC after misusing $20.5 million raised in EB-5 offering
The Securities and Exchange Commission announced a settlement Wednesday with a group of Houston-area developers accused of misusing $20.5 million in funds raised from Chinese investors through the EB-5 program.
The three Pearland-based companies — America Modern Green Senior, America Modern Green Community and America Modern Green Residential — raised a total of $49.5 million from 90 people through an EB-5 offering. The program allows foreign investors to obtain visas and ultimately a path to citizenship for investing in projects that create at least 10 jobs for American workers.
The companies said the funds were being used for a mixed-use project near Houston that was to include a senior independent and assisted living facility, townhomes, apartments and condominiums with ground-level retail.
But during 2015 and 2016, $20.5 million was diverted to unrelated real estate projects without investors’ knowledge, according to an investigation by the SEC's Fort Worth regional office. The SEC also found that the companies improperly described the titles and roles of two real estate experts involved in the project.
Read more: https://www.dallasnews.com/business/real-estate/2018/12/12/houston-area-developers-settle-sec-after-misusing-205-million-raised-eb-5-offering