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USREDA Successfully Represented EB-5 Investors While U.S.-Based Attorneys Misled Victims

Several US-based firms failed to represent clients in court; USREDA helped win reimbursement for defrauded immigrant investors.


Boca Raton, FL –– United States Regional Economic Development Authority, LLC (“USREDA”) played a pivotal role in persuading a Federal Court judge to return capital to defrauded foreign investors in a timely manner according to official court documents. Despite this, a misinformation campaign appears to have been created by attorneys who spread untruthful and confusing information to immigrant investors as it relates to the case. This according to an April 19 letter received by USREDA and its legal counsel from Milwaukee-based firm Quarles & Brady LLP, which falsely accused USREDA of acting against the U.S. Securities and Exchange Commission (“SEC”) efforts to return investor monies. As a result, USREDA is concerned that a number of attorneys, who did not at any time represent investors before the judge, are distorting the truth and profiting from the misinformation.

According to an April 23 release by the SEC, in the matter of U.S. Securities and Exchange Commission v. A Chicago Convention Center, LLC (“ACCC”), Anshoo Sethi, and Intercontinental Regional Center Trust of Chicago, LLC, (Civil Action No. 13-cv-982), Judge St. Eve in the United States District Court for the Northern District of Illinois ordered the return of more than $147 million in escrowed funds for “an investment scheme defrauding foreign investors” The ruling requires capital be repaid to the 297 foreign investors who had contributed to the project as part of the EB-5 pilot program, which gives immigrant investors a path to U.S. residency in return for their financing of job-creating domestic projects with a $500,000 investment. Although several law firms took on immigrant investors as clients, promising to protect them and their investment, court records show that at no point during the two months of court proceedings did the attorneys from these firms appear before a judge, submit documentation, make motions, or take any other action in court to protect their clients.

“The ACCC project director [Anshoo Sethi] is not the only one who may have acted dishonestly; some lawyers appear to have tried to profit from the litigation,” said USREDA CEO and President Joseph Walsh. “There is a great deal of misinformation circulating around this case, and USREDA is working hard to be sure that the truth is heard and the investors are properly protected and receive the return of their investment”

These statements stem from court documents which demonstrate that a number of firms claimed “dozens” of clients would require a delay in ruling so that all unrepresented investors could have a voice in the court. However, no representation was ever made by these firms on behalf of their clients with the exception of one law firm from Coral Gables that represented a single client. In addition, several clients claimed that other law firms sought to “represent” them only through a misguided letter to the SEC in which the lawyers falsely told their clients it was the SEC – and not the Court – who controlled the investment monies.

Meanwhile, the record shows that USREDA and its legal counsel fought for over half of the 297 investors involved in this case to receive legal representation before the Federal Court at no cost to the investors, which has resulted in the funds being returned their rightful owners.
“My sincere desire was to provide an efficient method for the innocent investors to receive their monies returned expeditiously” continued Mr. Walsh. “We are delighted that the Court and the SEC were sensitive to the needs of the immigrant investors by creating a immediate path for the return of the investors funds”

United States Regional Economic Development Authority, LLC (USREDA) is one of the largest and most respected processors of investment-based immigration (EB-5). By connecting investors with emerging organizations in key growth sectors such as innovation, real estate, tourism, and university and governmental infrastructure, USREDA is building wealth without borders for its clients.



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