#United States #New York #EB-5 Investors #Richard Xia #Fleet New York

Overview of the EB-5 Investor Distribution Plan

In recent legal proceedings involving Richard Xia and Fleet New York Metropolitan Regional Center, a distribution plan has been established for investors impacted by alleged securities fraud. These investors, who collectively contributed over $229 million towards two key projects, are now guided through a structured process to submit their claims for recovery.

Background of the Lawsuit

On September 27, 2021, the SEC filed a lawsuit against Xia, Fleet, and other involved parties in the Eastern District of New York. The allegations include securities fraud and misrepresentation to investors regarding the use of funds in the Eastern Mirage and Eastern Emerald projects. It was asserted that the defendants falsely assured investors that their capital would solely benefit the specific ventures they endorsed.

The SEC contended that Xia and his associates misappropriated millions intended for the projects, while also misrepresenting project details and the affiliations of the contractor involved. This lawsuit culminated in significant financial penalties, including the requirement for the defendants to make financial disbursements totaling over $272 million.

Approved Distribution Plan

On November 5, 2024, the Eastern District Court approved the plan for distributing these funds to EB-5 investors. The appointed Administrator, Robert W. Seiden, is responsible for overseeing this process. A significant milestone was reached when $42.5 million of previously frozen funds was allocated to an interest-bearing account under the Court Registry Investment System (CRIS).

Eligibility to Participate

Investors who have contributed to USCIS-approved New Commercial Enterprises (NCEs) linked to Fleet, such as EMMCO entities, are potentially eligible to receive distributions. The court's plan specifies three options for claim submission:

1. Request for Direct Distribution - Investors can opt for a direct payout from the settlement fund.
2. Distribution to NCEs - Funds may be returned to the original invested NCEs, contingent upon specific conditions.
3. Transfer to Alternative NCEs - Investors can choose to send distribution funds to other compatible EB-5 projects unrelated to the defendants.

Claim Submission Process

To participate in the recovery process, EB-5 investors are required to submit Proof of Claim Forms and associated documents by mail or through an online portal. The deadline for submissions is set for August 15, 2025, at 11:59 PM EST. Documents must be addressed to:
Seiden Law LLP
ATTN: Robert W. Seiden, Esq.
322 8th Avenue, Suite 1200
New York, NY 10001

Maximum Recovery Amount

The total recovery amount for each investor will be assessed according to the established methodology but will not exceed $550,000. The distribution process aims to ensure that investors receive fair compensation based on their contributions.

Additional Resources

For further assistance or inquiries regarding the claim form, the Distribution Administration Team can be reached via email or through the FAQ section on the official distribution portal. Investors are encouraged to visit the website for complete details on the options available and the associated requirements.

In conclusion, the distribution plan provides a structured framework for affected investors to reclaim their investments following the SEC's substantial legal actions against Xia and Fleet. With clear deadlines and multiple options for claim submissions, investors now have a pathway to pursue recovery following a tumultuous financial ordeal.