Yesterday, 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.
