SEC Obtains Settlements in $150 Million EB-5 Immigrant Investor Offering Fraud

SEC Obtains Settlements in $150 Million EB-5 Immigrant Investor Offering Fraud

"On March 17, 2014, the U.S. District Court entered a consent judgment against defendants Anshoo R. Sethi, A Chicago Convention Center, LLC (ACCC) and Intercontinental Regional Center Trust of Chicago, LLC (IRCTC) for their roles in raising approximately $158 million dollars from close to 300 investors as part of a fraudulent offering that targeted foreign nationals who sought to invest in the U.S. economy and gain a legal pathway to citizenship through the EB-5 Immigrant Investor Program, as alleged in the SEC's February 2013 complaint. The Final Judgment provides the following relief:

  • joint-and-several liability for over $11.5 million in disgorgement and prejudgment interest, subject to offsets for certain amounts refunded or credited to investors;
  • permanent injunctions against future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder;
  • an order enjoining and restraining defendants for twenty years from offering or selling securities issued by any of the defendants or issued by any entity owned or controlled by Sethi;
  • a civil penalty of $1 million against defendant Sethi;
  • civil penalties of up to $1.45 each against ACCC and IRCTC;
  • ACCC and IRCTC agreed to wind up and dissolve after satisfying their payment obligations." - SEC, Mar. 19, 2014.