The Securities and Exchange Commission filed a complaint against former Tibetan monk Lobsang Dargey in the U.S. District Court on Monday for allegedly defrauding 250 foreign investors--who were hoping to acquire green cards through the EB-5 Immigrant Investors Program of the U.S. Citizenship and Immigration Services (USCIS).
The complaint was filed against Dargey after using $14.7 million of the $125 million raised money from 250 foreign investors in other projects that were not included in their contract. The contract only states that the money from investors will be used to develop a 40-storey skyscraper in downtown Seattle, and a mixed-use building in nearby Everett, Washington. Dargey is also accused of spending $2.5 million of the investor's money to buy his new home in Bellevue, Washington, and withdrawing more than $200,000 from casinos in the U.S. and in Canada.
The 41-year-old former Buddhist monk arrived in the U.S. in 1997. He managed to work his way up from a handyman to a successful Seattle-area real estate developer.
At present, Dargey owns two companies, Path America, and Dargey Development. He has been developing real estates in Puget Sound for almost 10 years now.
According to the U.S. Securities and Exchange Commission, Dargey sold the project to foreign investors by promising them that their investments would help them gain U.S. citizenship through the EB-5 Program of the U.S. Citizenship and Immigration Services (USCIS).
The EB-5 Immigrant Investors Program was created in 1990 by the U.S. Congress to stimulate the U.S. economy through job creation and capital investment by foreign investors.
The EB-5 Visa can be granted to foreign investors if they invest a minimum of $500,000 to development projects that can serve as an employment opportunity for U.S. workers.
The assets of Dargey from the alleged fraud project were frozen by Judge James L. Robart. Dargey is scheduled for a preliminary hearing for the three fraud claims on Sept. 14 in the U.S. District Court in Seattle.
