Investors to Receive Their Entire Investments Back After SEC Halted Scheme Exploiting Immigration Program
Anshoo R. Sethi and two Chicago-based companies defrauded Chinese investors of over $147 million by falsely promising EB-5 visa eligibility in exchange for investments in a nonexistent hotel near O’Hare Airport, leading to a court-ordered return of all escrowed funds while SEC pursuit of penalties continues.
Anshoo R. Sethi and two companies he created in Chicago were charged by the SEC with securities fraud for misleading Chinese investors into believing their $147 million investments would finance a hotel and conference center near O’Hare Airport and secure U.S. residency through the EB-5 program. The SEC obtained an emergency asset freeze, after which Sethi and his entities terminated the offering and consented to returning all escrowed funds. On April 19, U.S. District Judge Amy St. Eve ordered the full $147 million returned to investors, while the SEC continues to seek additional monetary relief and permanent injunctions against Sethi and his companies.
Anshoo R. Sethi and two Chicago-based companies he created orchestrated a fraudulent investment scheme that raised over $147 million from Chinese investors by falsely claiming the funds would finance a hotel and conference center near O’Hare Airport and grant U.S. legal residency through the EB-5 Immigrant Investor Pilot Program. The SEC alleged that Sethi and his entities misled investors about both the viability of the project and the legitimacy of the immigration benefits, constituting securities fraud. Following the SEC’s emergency complaint and asset freeze in federal court in Chicago, Sethi and his companies ceased the offering and agreed to return all funds held in escrow. On April 19, U.S. District Judge Amy St. Eve modified the asset freeze order and directed the full return of more than $147 million to investors. While the principal investments have been restored, the SEC continues to pursue additional monetary penalties and permanent injunctions against Sethi and his entities to prevent future misconduct. The SEC emphasized that returning investor funds promptly is central to its mission and confirmed ongoing coordination with U.S. Citizenship and Immigration Services regarding EB-5-related fraud. This case underscores the agency’s vigilance in combating immigration-linked investment scams targeting foreign nationals.
Exhibits & Attached Documents (1)
Extracted insights
- $147.00M $147 million $100M–$1B
- person anshoo r. sethi
- company anshoo r. sethi and two companies with selling $147 million in securities
- court federal district court judge
- agency Securities and Exchange Commission
- SEC announced Investors In Fraudulent Investment Scheme Will Get Money Back
- Federal District Court Judge ordered Return Of All Investors' Principal Investment
- SEC charged Anshoo R. Sethi And Two Companies With Selling $147 Million In Securities
- Anshoo R. Sethi created Two Companies In Chicago
- Anshoo R. Sethi And His Companies misled Chinese Investors About Investment Opportunity And EB-5 Residency Prospect
- SEC filed Complaint In Federal Court In Chicago
- SEC obtained Emergency Court Order To Freeze Investor Assets
- Anshoo R. Sethi And His Companies terminated The Offering
- Judge Amy St. Eve modified Asset Freeze Order On April 19
- Judge Amy St. Eve directed Return Of $147 Million In Escrowed Funds To Investors
- SEC seeks Further Monetary Relief And Permanent Injunctions Against Sethi And His Companies
The Securities and Exchange Commission today announced that investors in a fraudulent investment scheme that offered foreign investors a path to citizenship will get their money back promptly thanks to the SEC’s recent court action. A federal district court judge has ordered the return of all investors’ principal investment in the fraudulent securities offering. Just two months ago, the SEC charged Anshoo R. Sethi and two companies he created in Chicago to sell more than $147 million in securities to purportedly finance the construction of a hotel and conference center near O’Hare Airport. The SEC alleged that Sethi and his companies misled Chinese investors about both the purported investment opportunity and the prospect of gaining legal U.S. residency through the EB-5 Immigrant Investor Pilot Program. The SEC filed its complaint in federal court in Chicago and obtained an emergency court order to freeze investor assets that were at risk of being misappropriated. Sethi and his companies then terminated the offering and consented to the SEC’s motion to return all of the funds held in escrow to investors. U.S. District Court Judge Amy St. Eve modified the asset freeze order on April 19 and directed the return of more than $147 million in escrowed funds to investors. The litigation continues as the SEC seeks further monetary relief and permanent injunctions against Sethi and his companies. “Obtaining the speedy return of investor funds in cases like this is at the core of the SEC’s mission,” said Stephen L. Cohen, Associate Director of the SEC’s Division of Enforcement. “We will continue to work closely with U.S. Citizenship and Immigration Services when questions arise about investments involving the EB-5 Program.”
The Securities and Exchange Commission today announced that investors in a fraudulent investment scheme that offered foreign investors a path to citizenship will get their money back promptly thanks to the SEC’s recent court action. A federal district court judge has ordered the return of all investors’ principal investment in the fraudulent securities offering. Just two months ago, the SEC charged Anshoo R. Sethi and two companies he created in Chicago to sell more than $147 million in securities to purportedly finance the construction of a hotel and conference center near O’Hare Airport. The SEC alleged that Sethi and his companies misled Chinese investors about both the purported investment opportunity and the prospect of gaining legal U.S. residency through the EB-5 Immigrant Investor Pilot Program. The SEC filed its complaint in federal court in Chicago and obtained an emergency court order to freeze investor assets that were at risk of being misappropriated. Sethi and his companies then terminated the offering and consented to the SEC’s motion to return all of the funds held in escrow to investors. U.S. District Court Judge Amy St. Eve modified the asset freeze order on April 19 and directed the return of more than $147 million in escrowed funds to investors. The litigation continues as the SEC seeks further monetary relief and permanent injunctions against Sethi and his companies. “Obtaining the speedy return of investor funds in cases like this is at the core of the SEC’s mission,” said Stephen L. Cohen, Associate Director of the SEC’s Division of Enforcement. “We will continue to work closely with U.S. Citizenship and Immigration Services when questions arise about investments involving the EB-5 Program.”