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which lead to a delay in full job creation, the cause of
such a delay may need to be proven in court. A common
argument is that the operator has no liability for
operating at a loss in order to meet job creation.
Has the investor been denied various immigration
benefits? If the investor has not received his or her green
card, there are various causes of action for the denial of
an I-829. Does the investor have a duty to exhaust all
I-829 appeals before filing a cause of action for denial
of a green card? This process could include filing suit in
federal district court, appealing that decision.
Regarding a return of investment, if the project is
completed and the jobs created, when is the money due
back to the investor? If a large project still has investors
waiting for I-829 approval, there cannot be a return
of capital which would jeopardize that investor’s
application. We look at issues of partial refinance and
redeployment of capital due to another investor’s delay.
Beyond just a return of principal, some investors will sue
to capture their share of the gain or profit allocation. If the
“
Beyond just
a return of principal,
some investors will sue to
capture their share of the
gain or profit allocation.
agreement allowed for a percentage equity of gain, then
they might sue how to enforce the excess profit allocation
beyond return of principal. These are common contract
issues, but important to analyze through the lens of EB-5.
Alleged fraud or misuse/mismanagement of funds
is another reason to sue. These allegations are quite
serious and carry potential criminal penalties and
individual liability. Careful accounting and forensic
work are often needed to unwind the decisions and
process behind the expenditures.