Should I join other investors in suing our EB-5 project developer? - EB5Investors.com

Should I join other investors in suing our EB-5 project developer?

I’m a pre-RIA 2022 EB-5 investor who got my I-526 approved last time. As I’m still waiting for my priority date to become current and the subsequent I-485 filing, my lawyer has suggested a lawsuit with other investors, some of whom have completed their I-829, to recoup the investment from the developer. He told me that although I have yet to satisfy the investment sustainment as a pre-RIA investor, the lawsuit could take a long time and come to a resolution after my conditional residence is completed. Even if it is completed before my future conditional residence period ends, the fund could stay in the fund/escrow account to be re-deployed to another project. He encourages me to join the other investors to recoup our investment because the developer is facing claims by other institutional creditors, and we should claim our share while the developer is still solvent. However, I’m worried about whether this early maturity of my investment could risk an I-829 denial in the future. Secondly, our loan investment business is still business as usual and is backed with a hotel building as a mortgage. I’m seeking the financial reports, but I am still uncertain whether the properties and their cash flows will fail to cover all existing debts. The risk of capital loss from redeployment could be just as high, if not higher, than waiting out the existing investment to mature. I’d appreciate your guidance.

Answers

Lynne Feldman

Lynne Feldman

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Answered on

Not an easy answer and would require more complete analysis.

Michael E Piston

Michael E Piston

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Answered on

I would need much more information to resolve this. Feel free to contact me to discuss it.

David Raft

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Answered on

Given that you have legal counsel with respect to your EB5 investment, I would recommend focusing on obtaining that person’s counsel as they are aware of all of the specific details related to your investment and the project you invested in. Any attorney would need for you to share documentation from you to assess a case and provide competent advice with respect to your options and how they may impact the I-829.

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