Developer Slams Receivership Bid In $136M EB-5 Fraud Suit

Law360, New York (June 15, 2016, 6:03 PM EDT) -- A developer accused by the U.S. Securities and Exchange Commission of misappropriating funds in a $136 million EB-5 fraud case centered on a Seattle skyscraper project asked a Washington federal judge Tuesday to deny the agency’s request to add his other entities to receivership.

Lobsang Dargey, who is also a relief defendant, said the SEC simply wants to take control of the four companies currently outside of receivership because it wants the opportunity to renegotiate a sales agreement that would award him 6 percent of the proceeds, which would be used to fight the U.S. Department of Justice investigation into the...

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