23 Chinese nationals claim they were misled into investing over $12.1m in failed casino projects.
In a lawsuit submitted in the New York State Supreme Court, members of the American Northern Marianas Economic Development Fund claim that investment opportunities connected to development projects in the Northern Mariana Islands, a series of islands in the Western Pacific, north of Guam, were misrepresented.
In particular, the lawsuit centres around a titanic-themed resort and casino on Tinian.
Despite plans for a $360m project, the resort never broke ground as investors Alter City Group claimed China’s ban on its citizens travelling with the intention of gambling made the project unviable.
Now, the group of investors claim that the project never materialised because of false promises, mismanagement and misrepresentation by the developer.
A number of business figures, immigration agents, law firms and attorneys have been named in the lawsuit, including Xianjun Meng, Managing Director of the American Northern Marianas Regional Center and CEO of Bridge Investment Group LLC.
US green cards promised
The plaintiffs claim they were misled into investing nearly $12.1m, plus hundreds of thousands in fees, based on promises that their funds would support the development of the aforementioned resort.
In addition, according to the complaint, investors were lured into investing as part of the EB-5 investor visa program.
EB-5 offers investors permanent residency in the US for foreign investors who invest in a US commercial enterprise, create at least 10 full-time jobs for US workers and invest at least $800,000.
The lawsuit states that the job creation model used to secure EB-5 approval was flawed, noting that, due to the number of US citizens on Tinian, it was unlikely to meet the requirements of the program.
The plaintiffs are seeking restitution of misappropriated funds, damages and removal of defendants from control over the American Northern Marianas Economic Development Fund.
In total, it is believed that the fund loaned approximately $64m to the Bridge Investment Group.
