SEC Obtains Emergency Relief Against New York Real Estate Developer Charged with EB-5 Securities Fraud
summary
The SEC filed an emergency action against Richard Xia (aka Yi Xia), his company Fleet New York Metropolitan Regional Center LLC, and his wife Julia Yue, alleging securities fraud in connection with $2
paragraph
The SEC filed an emergency action against Richard Xia (aka Yi Xia), his company Fleet New York Metropolitan Regional Center LLC, and his wife Julia Yue, alleging securities fraud in connection with $229 million raised from over 450 investors through five EB-5 offerings for two Queens, New York, real estate projects—Eastern Mirage and Eastern Emerald. The complaint accuses Xia of material misrepresentations regarding project financing, development team experience, project scope, and lease agreements, while misappropriating at least $17 million from Eastern Mirage investors and $11.8 million from Eastern Emerald investors. The SEC charges Xia and Fleet with violating federal anti-fraud securities laws and names Yue as a relief defendant seeking disgorgement of ill-gotten gains. The agency seeks a permanent injunction, disgorgement, prejudgment interest, civil penalties, an asset freeze, and the appointment of a monitor. The investigation was led by SEC staff in the New York Regional Office, with litigation handled by Kevin McGrath, Neil Hendelman, and Kim Han.
Classified pre-ipo-fraud(confidence 95%). EDGAR detection: forms S-1/Form D/1-A· recall 72% / precision 8%. detection rule →
Statutes
15 U.S.C. § 77q(a)
Parties
fleet new york metropolitan regional center llcfraudulent activityjulia yuerichard xiarichard xia and fleet new york metropolitan regional center llcsec complaintSecurities and Exchange Commission
Keywords
newreal estatexiasecuritiesrelief againstsecurities fraudeastern emeraldinvestor fundsreliefsec'seasternrealestateeb-projects
Extracted insights
Dollar amounts 3
- $229.00M $229 million $100M–$1B
- $17.00M $17 million $10M–$100M
- $11.80M $11.8 million $10M–$100M
Entities 8
- court federal district court in brooklyn, new york
- company fleet new york metropolitan regional center llc
- person fraudulent activity
- person julia yue
- person richard xia
- company richard xia and fleet new york metropolitan regional center llc
- agency sec complaint
- agency Securities and Exchange Commission
Triples 15
- SEC filed emergency action against Richard Xia and Fleet New York Metropolitan Regional Center LLC
- SEC obtained asset freeze against Richard Xia and Fleet New York Metropolitan Regional Center LLC
- Richard Xia committed securities fraud in connection with Two Real Estate Projects in Queens, New York
- Richard Xia fraudulently raised $229 Million Through Five EB-5 Offerings
- Richard Xia raised funds from More Than 450 Investors
- Richard Xia misappropriated Approximately $17 Million in Eastern Mirage Investor Funds
- Richard Xia misappropriated At Least $11.8 Million in Eastern Emerald Investor Funds
- Richard Xia made material misrepresentations regarding Sources of Financing, Development Team Experience, Project Scope, and Lease Agreements
- SEC charges with violating Anti-Fraud Provisions of Federal Securities Laws
- SEC Complaint filed in Federal District Court in Brooklyn, New York
- SEC seeks permanent injunction, disgorgement, and civil penalties against Richard Xia and Fleet New York Metropolitan Regional Center LLC
- Julia Yue named as relief defendant in SEC Complaint
- SEC seeks disgorgement and prejudgment interest from Julia Yue
- Richard Xia operated Fleet New York Metropolitan Regional Center LLC
- Fraudulent Activity occurred from 2010 Through Late 2017
Extracted body text (2,502c)
The Securities and Exchange Commission today announced that it filed an emergency action and obtained an asset freeze, among other relief, against Richard Xia (aka Yi Xia) and his company, Fleet New York Metropolitan Regional Center LLC (formerly known as Federal New York Metropolitan Regional Center LLC), for committing securities fraud in connection with two real estate projects in Queens, New York. The SEC's complaint alleges that from 2010 through late 2017, Xia, through Fleet, fraudulently raised more than $229 million through five EB-5 offerings from more than 450 investors. The funds were allegedly raised for Xia's two real estate development projects – the Eastern Mirage project and the Eastern Emerald project. According to the complaint, the offering materials made material misrepresentations regarding the sources of financing for the projects, the experience of the projects' development and construction team, the scope of the Eastern Emerald project, and the existence of lease agreements among several entities that Xia owns and controls. Additionally, Xia allegedly misappropriated approximately $17 million in Eastern Mirage investor funds, and at least $11.8 million in Eastern Emerald investor funds. "Developers offering securities in connection with the EB-5 program have the responsibility to be truthful with their investors," said Richard Best, Director of the SEC's New York Regional Office. "As we allege in our complaint, Xia misappropriated millions of dollars in investor funds and misled investors about the financing for the projects and the experience of the projects' development and construction team." The SEC's complaint, filed in federal district court in Brooklyn, New York, charges Xia and Fleet with violating the anti-fraud provisions of the federal securities laws. The complaint seeks, among other relief, a permanent injunction, disgorgement, prejudgment interest, civil penalties, an asset freeze, and the appointment of a monitor. The complaint also names Xia's wife, Julia Yue (aka JiQing Yue), as a relief defendant and seeks disgorgement and prejudgment interest from her. The SEC's investigation was conducted by Kim Han, Brenda Wai Ming Chang, Neil Hendelman, David Stoelting, and Judith Weinstock under the supervision of Lara Shalov Mehraban. The examination that led to this investigation was conducted by the NYRO Broker-Dealer Exchange Examination Program. The SEC's litigation is being led by Mr. Stoelting, Kevin McGrath, and Ms. Han.
OCR text (2,502c · html-text · 99% conf)
The Securities and Exchange Commission today announced that it filed an emergency action and obtained an asset freeze, among other relief, against Richard Xia (aka Yi Xia) and his company, Fleet New York Metropolitan Regional Center LLC (formerly known as Federal New York Metropolitan Regional Center LLC), for committing securities fraud in connection with two real estate projects in Queens, New York. The SEC's complaint alleges that from 2010 through late 2017, Xia, through Fleet, fraudulently raised more than $229 million through five EB-5 offerings from more than 450 investors. The funds were allegedly raised for Xia's two real estate development projects – the Eastern Mirage project and the Eastern Emerald project. According to the complaint, the offering materials made material misrepresentations regarding the sources of financing for the projects, the experience of the projects' development and construction team, the scope of the Eastern Emerald project, and the existence of lease agreements among several entities that Xia owns and controls. Additionally, Xia allegedly misappropriated approximately $17 million in Eastern Mirage investor funds, and at least $11.8 million in Eastern Emerald investor funds. "Developers offering securities in connection with the EB-5 program have the responsibility to be truthful with their investors," said Richard Best, Director of the SEC's New York Regional Office. "As we allege in our complaint, Xia misappropriated millions of dollars in investor funds and misled investors about the financing for the projects and the experience of the projects' development and construction team." The SEC's complaint, filed in federal district court in Brooklyn, New York, charges Xia and Fleet with violating the anti-fraud provisions of the federal securities laws. The complaint seeks, among other relief, a permanent injunction, disgorgement, prejudgment interest, civil penalties, an asset freeze, and the appointment of a monitor. The complaint also names Xia's wife, Julia Yue (aka JiQing Yue), as a relief defendant and seeks disgorgement and prejudgment interest from her. The SEC's investigation was conducted by Kim Han, Brenda Wai Ming Chang, Neil Hendelman, David Stoelting, and Judith Weinstock under the supervision of Lara Shalov Mehraban. The examination that led to this investigation was conducted by the NYRO Broker-Dealer Exchange Examination Program. The SEC's litigation is being led by Mr. Stoelting, Kevin McGrath, and Ms. Han.