Successful EB-5 Victim Fraud

  • Client: Mr. Ying*
  • Nationality: China
  • Position: Company President
  • Investment Amount: $500,000
  • Direct EB-5 Filing
  • Challenges
    • Mr. Ying was a victim of EB-5 investment fraud from trusted manager and agent who disappeared
    • Mr. Ying had to deal with the company’s debts, lawsuits, and denial of his green card.
    • Mr. Ying was summoned to court while he was in China and had a judgment entered against him for unpaid debts
    • Mr. Ying had no documents to give us to prove his innocence

Background

Mr. Ying was in the process of applying for an EB-5 immigrant investor green card when the agent he hired ran off with his investment of $500,000.  Unbeknownst to him, the group in which he invested was running a Ponzi scheme –  in which the group would pay old investors with money received from new investors.  The U.S. Securities and Exchange Commission filed a complaint, and the Investment Group was found to be illegitimate, which meant that Mr. Ying’s green card was denied.

But his legal battles did not end there.  His company (of which he was President) was left empty, which resulted in large debts and multiple lawsuits.  An insurance company, other businesses to which he owned outstanding debts, and the city itself was suing him.  He was summoned to fly from China to America to appear in court.  The stress and complications of the fraud he was a victim of was extraordinary.

Distressed and frustrated, Mr. Ying reached out to us with little to no documents of the company he owned. We were able to effectively close all his lawsuits, negotiated down his liability, and helped Mr. Ying dissolve his company to allow him to travel to the United States, ending the EB-5 nightmare.

Keys To Success

Lack of Documentation

When Mr. Ying reached out to us, we understood his distress and shaky situation, especially since he did not have any documents to prove his innocence.  We came up with methods in which documents could be produced: requests to Mr. Ying’s previous attorney, court archives, and banks.  Though the process was difficult, costly in time and effort (especially with banks, as banks typically refuse to release bank statements unless there is a lawsuit), we were able to pull up enough documentation for his case.

His name was not signed on many of the documentation we found, but with a bit of creativity and very clear explanations, we were able to link his documentation and case together to the satisfaction of the debtor and the Secretary of State to dissolve company.

Lawsuits and Court Order

Another huge challenge was helping Mr. Ying with the lawsuits filed against his company.  The insurance company regarding worker’s compensation in particular had summoned him to fly from China to America to appear in court.

But Tsang & Associates was able to mitigate the liability and court order.

Dissolution

Tired and stressed, Mr. Ying wished to dissolve his company and be able to travel to the U.S. again.  However, the Secretary of State was unwilling to dissolve the company until all liens on the company was released.  We guided Mr. Ying through the procedure and was there for every step, from informing the State of California Tax Board to filing with the Secretary of State. 

As such, his company was successfully dissolved without any complications.

Outcome

From being a victim of fraud, losing his green card, facing lawsuits, court orders, and debts with not a single document to prove his innocence, we were able to help Mr. Ying fix all his legal problems. 

In total, his claims reduced from $150,000 to $20,000 and he no longer had a warrant.

Within 6 months, Mr. Ying was able dissolve his company, could travel freely, and was free of the nightmare of legal battles.

*Name has been changed to protect client identity.