Friday, January 15, 2016

Chicago EB-5 scam perpetrator pleads guilty to wire fraud

Anshoo Sethi, pleaded guilty on January 12 to wire fraud, admitting his role in a scam that promised to build hotels and a convention center near O’Hare Airport by fraudulently raising more than $158 million from Chinese investors who expected to get immigrant visas under the so-called EB-5 Program, whose goal is to create full-time U.S. worker jobs.
Sethi, 32, admitted in federal court that he provided investors with forged documents, including a bogus letter from Hyatt Hotels, to get them to invest in his development, which had been approved by U.S. Citizenship and Immigration Services, the agency that grants immigrant visas to foreigners who invest at least $500,000 in approved projects under the program.
None of Sethi’s 290 investors got a visa, but they did receive refunds of their $500,000 investments.