2017-01-18 sec-litreleases litigation_release 66 KB 2,583 chars

SEC v. Thomas M. Henderson; and San Francisco Regional Center, LLC, No. LR-23721, Northern District of California (Jan. 18, 2017) — Press Release

raw: San Francisco Regional Center, LLC, et al.

San Francisco Regional Center, LLC, et al., No. 3:17-cv-00223 (Jan. 18, 2017)

Caption
Securities And Exchange Commission v. San Francisco Regional Center LLC
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summary

The U

paragraph

The U.S. Securities and Exchange Commission charged businessman Thomas M. Henderson and his company San Francisco Regional Center LLC with defrauding foreign investors in the EB-5 visa program by misusing approximately $100 million in investments meant to create U.S. jobs. Henderson falsely claimed funds would support job-creating ventures like nursing homes and call centers, but instead diverted at least $9.6 million for personal use—including a home and restaurants—and $7.5 million to overseas marketing agents. The SEC alleges he obscured the fraud by shuffling funds between entities, violating Sections 10(b) and 17(a) of federal securities laws. The Commission seeks a receiver, disgorgement of ill-gotten gains with interest, civil penalties, and preliminary injunctions, while cooperating with U.S. Citizenship and Immigration Services.

narrative

The U.S. Securities and Exchange Commission charged businessman Thomas M. Henderson and his company San Francisco Regional Center LLC with defrauding foreign investors in the EB-5 visa program by misusing approximately $100 million in investments meant to create U.S. jobs. Henderson falsely claimed funds would support job-creating ventures like nursing homes and call centers, but instead diverted at least $9.6 million for personal use—including a home and restaurants—and $7.5 million to overseas marketing agents. The SEC alleges he obscured the fraud by shuffling funds between entities, violating Sections 10(b) and 17(a) of federal securities laws. The Commission seeks a receiver, disgorgement of ill-gotten gains with interest, civil penalties, and preliminary injunctions, while cooperating with U.S. Citizenship and Immigration Services. The U.S. Securities and Exchange Commission charged businessman Thomas M. Henderson and his company San Francisco Regional Center LLC with defrauding foreign investors in the EB-5 visa program by misusing approximately $100 million in investments meant to create U.S. jobs. Henderson falsely claimed funds would support job-creating ventures like nursing homes and call centers, but instead diverted at least $9.6 million for personal use—including a home and restaurants—and $7.5 million to overseas marketing agents. The SEC alleges he obscured the fraud by shuffling funds among shell entities, violating Sections 10(b) and 17(a) of federal securities laws. The Commission seeks a receiver appointment, disgorgement of ill-gotten gains with interest, civil penalties, and preliminary injunctions. The investigation involved collaboration with U.S. Citizenship and Immigration Services.

Enriched metadata

Scheme
affinity-fraud (90%)
Court
Northern District of California
Case No.
3:17-cv-00223
Entity
San Francisco Regional Center, LLC
Classified affinity-fraud(confidence 90%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →
Statutes
Section 10(b) of the Securities Exchange ActSection 17(a) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionSan Francisco Regional Center LLCJoanne TelesmanicLimited Partners in NA3PL, L.P.CallSocket Holding Company, LLCN.A.3PL, L.P.WOMAC Properties, Inc.FLLLP Sudeep SinghAngel KeenePritzker Levine LLPMid Valley Services, IncComprehensive Care of California, LLCJakob G WeststeynNorth America 3PL, LLCEB-5 Investors in CallSocket, LO.P.Thomas A. MillerLori A BertolucciCallSocket II, L.P.CallSocket III Holding Company, LLCSteve and Katherine zupanovichAlbert E. SistoJL Gateway, LLCTrusee Robert WilsonLu WangBerkeley Healthcare Dynamics, LLCJiang LanCentral California Farms, LLCJennifer BronsonTipton investment Holding, LLCInterested Parties in California Gold Medal, L.P.Clement ChinAshlan InvestmentsLou TelesmanicGeorge A BertolucciGladys Y WeststeynCallSocket, L.P.Shirley Ma-LongwellCalifornia Gold Medal, L.P.Thomas M. HendersonWest Oakland Plaza, L.P.CallSocket III, L.P.North American 3PL, LLCRong ZhaoKevin ShimamotoCallSocket III, LLCAllan YoungCallSocket II, LLCJudith A MillerComprehensive Care of Oakland, L.P.Robert SovieroEB-5 Investors in: CallSocket, LP, CallSocket II, LP, CallSocket III LP, Comprehensive Care of Oakland LPFPO Singh IRA Pensco Trust CompanyImmedia LLCSusan L. UeckerJLG Associates, LLCCallSocket, LLCHung viet LuongUSA
Keywords
francisco regionalregional centersecurities exchangeeb-sanfranciscosecuritiesexchange commissionregionalcentersec'ssecllcexchangeinvestors

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 4
  • $100.00M $100 million $100M–$1B
  • $9.60M $9.6 million $1M–$10M
  • $7.50M $7.5 million $1M–$10M
  • $500K $500,000 $100K–$1M
Entities 2
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
Triples 7
  • Securities and Exchange Commission charged an Oakland, Calif.-based businessman with misusing money raised from investors through the EB-5 immigrant investor program
  • Securities and Exchange Commission charged an Oakland, Calif.-based businessman with misusing money raised from investors through the EB-5 immigrant investor program
  • Securities and Exchange Commission announced fraud charges against an Oakland, Calif.-based businessman
  • Securities and Exchange Commission charged San Francisco Regional Center, LLC, et al.
  • San Francisco Regional Center, LLC, et al. misused EB-5 investments
  • Businessman raised money from investors
  • EB-5 immigrant investor program intended create or preserve jobs for U.S. workers
PDF (from attached: pdf)
SEC v. SAN FRANCISCO REGIONAL CENTER · Source
Text layers
Extracted body text (2,583c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23721 / January 18, 2017 Securities and Exchange Commission v. San Francisco Regional Center, LLC, et al., Civil Action No. 3:17-cv-00223 (N.D. Calif. filed Jan. 17, 2017) SEC Charges Businessman with Misusing EB-5 Investments The Securities and Exchange Commission today announced fraud charges against an Oakland, Calif.-based businessman accused of misusing money he raised from investors through the EB-5 immigrant investor program intended to create or preserve jobs for U.S. workers. The SEC alleges that Thomas M. Henderson and his company San Francisco Regional Center LLC falsely claimed to foreign investors that their $500,000 investments would help create at least 10 jobs within several distinct EB-5 related businesses he created, including a nursing facility, call centers, and a dairy operation. This would qualify the investors for a potential path to permanent U.S. residency through the EB-5 program. But according to the SEC's complaint, Henderson jeopardized investors' residency prospects and combined the $100 million he raised from investors into a general fund from which he allegedly misused at least $9.6 million to purchase his home and personal items and improperly fund several personal business projects such as Bay Area restaurants that were unrelated to the companies he purportedly established to create jobs consistent with EB-5 requirements. According to the SEC's complaint, Henderson also improperly used $7.5 million of investor money to pay overseas marketing agents, and he shuffled millions of dollars among the EB-5 businesses to obscure his fraudulent scheme. The SEC's complaint charges violations of the antifraud provisions of the securities laws in Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933. The SEC is seeking a court order appointing a receiver over San Francisco Regional Center and Henderson's other businesses involved in the alleged fraud. The SEC's complaint, filed in U.S. District Court for the Northern District of California, seeks preliminary injunctions as well as disgorgement of ill-gotten gains plus interest, penalties, and other relief. The SEC's investigation was conducted by Thomas Eme and Ellen Chen of the SEC's San Francisco office and supervised by Steven Buchholz. The litigation will be led by Andrew Hefty and Susan LaMarca. The SEC appreciates the assistance of the U.S. Citizenship and Immigration Services, which administers the EB-5 program. SEC Complaint
OCR text (2,583c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23721 / January 18, 2017 Securities and Exchange Commission v. San Francisco Regional Center, LLC, et al., Civil Action No. 3:17-cv-00223 (N.D. Calif. filed Jan. 17, 2017) SEC Charges Businessman with Misusing EB-5 Investments The Securities and Exchange Commission today announced fraud charges against an Oakland, Calif.-based businessman accused of misusing money he raised from investors through the EB-5 immigrant investor program intended to create or preserve jobs for U.S. workers. The SEC alleges that Thomas M. Henderson and his company San Francisco Regional Center LLC falsely claimed to foreign investors that their $500,000 investments would help create at least 10 jobs within several distinct EB-5 related businesses he created, including a nursing facility, call centers, and a dairy operation. This would qualify the investors for a potential path to permanent U.S. residency through the EB-5 program. But according to the SEC's complaint, Henderson jeopardized investors' residency prospects and combined the $100 million he raised from investors into a general fund from which he allegedly misused at least $9.6 million to purchase his home and personal items and improperly fund several personal business projects such as Bay Area restaurants that were unrelated to the companies he purportedly established to create jobs consistent with EB-5 requirements. According to the SEC's complaint, Henderson also improperly used $7.5 million of investor money to pay overseas marketing agents, and he shuffled millions of dollars among the EB-5 businesses to obscure his fraudulent scheme. The SEC's complaint charges violations of the antifraud provisions of the securities laws in Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933. The SEC is seeking a court order appointing a receiver over San Francisco Regional Center and Henderson's other businesses involved in the alleged fraud. The SEC's complaint, filed in U.S. District Court for the Northern District of California, seeks preliminary injunctions as well as disgorgement of ill-gotten gains plus interest, penalties, and other relief. The SEC's investigation was conducted by Thomas Eme and Ellen Chen of the SEC's San Francisco office and supervised by Steven Buchholz. The litigation will be led by Andrew Hefty and Susan LaMarca. The SEC appreciates the assistance of the U.S. Citizenship and Immigration Services, which administers the EB-5 program. SEC Complaint

Related documents (1)