Richard Xia: “This is about protecting the American Dream”
New York, NY – Queens-based developer Richard Xia is fighting to protect hundreds of EB-5 investors from the consequences of alleged unwarranted prosecution by the Securities and Exchange Commission (SEC). Xia and his attorneys filed multiple motions yesterday designed to prevent the liquidation of two unfinished building projects in New York City financed in part by individuals seeking to obtain green cards through a special program designed to encourage foreign investment in the U.S. economy.
Mr. Xia and his attorneys have filed a motion to stay the enforcement of a final judgement in the United States District Court - Eastern District of New York, in addition to a motion to modify said final judgement. Mr. Xia and his attorneys argue that material conditions have changed since the settlement agreement with the SEC was reached that now make fulfilling that agreement impossible.
“Continued enforcement of the judgment, as is apparently construed and being proposed by the SEC now, affects the substantial legal rights — and lives — of not just Defendants, but many third parties as well, including EB-5 investors whose U.S. Residency is at stake and have made their views known in this action,” the motion to stay states.
Mr. Xia and his company, Fleet Financial Group, are the developers of the Eastern Mirage and Eastern Emerald building projects in Queens, New York, which were financed in part through EB-5 capital investments. Mr. Xia and his company reached a settlement with the SEC following an ex parte emergency asset freeze that Mr. Xia and his attorneys claim relied on misleading and incomplete representations to the court. The SEC is now seeking to liquidate the projects’ assets.
“The SEC’s unjust and unfounded persecution against me has hurt my reputation and my livelihood, but the real victims in the SEC’s crusade to destroy the Eastern Mirage and Eastern Emerald projects are the are the EB-5 investors who are opposed to liquidation and wish to see the projects completed,” said Mr. Xia. “This is about protecting the American Dream.”
Mr. Xia and his attorneys have filed a motion to stay the enforcement of a final judgement in the United States District Court - Eastern District of New York, in addition to a motion to modify said final judgement. Mr. Xia and his attorneys argue that material conditions have changed since the settlement agreement with the SEC was reached that now make fulfilling that agreement impossible.
“Continued enforcement of the judgment, as is apparently construed and being proposed by the SEC now, affects the substantial legal rights — and lives — of not just Defendants, but many third parties as well, including EB-5 investors whose U.S. Residency is at stake and have made their views known in this action,” the motion to stay states.
Mr. Xia and his company, Fleet Financial Group, are the developers of the Eastern Mirage and Eastern Emerald building projects in Queens, New York, which were financed in part through EB-5 capital investments. Mr. Xia and his company reached a settlement with the SEC following an ex parte emergency asset freeze that Mr. Xia and his attorneys claim relied on misleading and incomplete representations to the court. The SEC is now seeking to liquidate the projects’ assets.
“The SEC’s unjust and unfounded persecution against me has hurt my reputation and my livelihood, but the real victims in the SEC’s crusade to destroy the Eastern Mirage and Eastern Emerald projects are the are the EB-5 investors who are opposed to liquidation and wish to see the projects completed,” said Mr. Xia. “This is about protecting the American Dream.”
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