SEC v. Emilio Francisco; PDC Capital; and 20 other Francisco-controlled businesses, No. LR-23712, Central District of California (Dec. 27, 2016) — Press Release
raw: Emilio Francisco, et al.
Emilio Francisco, et al., No. 8:16-cv-02257-CJC (Dec. 27, 2016)
Emilio Francisco, a California-based attorney, defrauded investors in the EB-5 immigrant investor program, stealing at least $9.6 million of the $72 million raised, and was charged by the SEC with violating federal securities laws.
Emilio Francisco, a California-based attorney, and his companies, including PDC Capital, were charged by the SEC with defrauding over $72 million from Chinese investors in EB-5 visa programs. The funds were allegedly diverted to finance Francisco's own businesses and luxury lifestyle, including buying a yacht. Francisco and his entities were accused of violating Sections 17(a) and 10(b) of the federal securities laws and Rule 10b-5.
The U.S. Securities and Exchange Commission charged California attorney Emilio Francisco and 22 entities, including his marketing firm PDC Capital, with defrauding over $72 million from Chinese investors in EB-5 visa programs. The funds were raised for job-creating projects like restaurants and assisted living facilities, but Francisco allegedly stole at least $9.6 million to finance his personal luxury lifestyle, including purchasing a yacht, and prop up his other businesses. This action knowingly violated EB-5 regulations and jeopardized investors’ immigration prospects. The SEC accused him and his entities of violating Sections 17(a) and 10(b) of the federal securities laws and Rule 10b-5, as well as aiding and abetting fraud and control-person liability. The Commission sought an emergency asset freeze and court-appointed receiver to halt further dissipation of assets. The investigation involved collaboration with U.S. Citizenship and Immigration Services. The SEC's litigation is being led by John B. Bulgozdy.
Exhibits & Attached Documents (1)
Extracted insights
- $72.00M $72 million $10M–$100M
- $9.60M $9.6 million $1M–$10M
- person Emilio Francisco
- Emilio Francisco charged with defrauding investors seeking to participate in the EB-5 immigrant investor program
- Emilio Francisco stealing investor money to buy a yacht and prop up his other businesses
- Emilio Francisco stealing investor money to buy a yacht and prop up his other businesses
- SEC charged lawyer with defrauding investors seeking to participate in the EB-5 immigrant investor program
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23712 / December 27, 2016 Securities and Exchange Commission v. Emilio Francisco, et al., Civil Action No. 8:16-cv-02257-CJC-DFM (Central District of California, Complaint filed December 27, 2016) SEC Charges Lawyer with Stealing Investor Money in Eb-5 Offerings The Securities and Exchange Commission today charged a California-based attorney with defrauding investors seeking to participate in the EB-5 immigrant investor program, stealing their money to buy a yacht and prop up his other businesses. The SEC alleges that Emilio Francisco raised $72 million from investors in China solicited through his marketing firm PDC Capital to invest in EB-5 projects that included opening Caffe Primo restaurants, developing assisted living facilities, and renovating a production facility for environmentally friendly agriculture and cleaning products. Under the EB-5 program, foreign investors can apply to permanently live and work in the U.S. by investing money in certain projects that bring about American jobs. According to the SEC's complaint, Francisco and PDC Capital diverted investor funds from one project to another and outright stole at least $9.6 million that was used to finance Francisco's own businesses and luxury lifestyle. Francisco was allegedly aware that doing so would violate federal regulations and jeopardize any visas for the foreign investors. The SEC's complaint charges Francisco, PDC Capital, and 20 other Francisco-controlled businesses with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint also alleges that Francisco and PDC Capital aided and abetted the other defendants' violations of Section 10(b) and Rule 10b-5(b), and that Francisco is also liable under section 20(a) of the Securities and Exchange Act of 1934 as a control person of the entity defendants. The SEC is seeking an emergency asset freeze and a court-appointed receiver over Francisco's businesses involved in the schemes. The SEC's investigation has been conducted in the Los Angeles office by Adrienne D. Gurley, Jasmine Starr, and Christopher M. Conte, and the case has been supervised by Spencer Bendell, Alka N. Patel and John W. Berry. The SEC's litigation is being led by John B. Bulgozdy. The SEC appreciates the assistance of the U.S. Citizenship and Immigration Services. SEC Complaint
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23712 / December 27, 2016 Securities and Exchange Commission v. Emilio Francisco, et al., Civil Action No. 8:16-cv-02257-CJC-DFM (Central District of California, Complaint filed December 27, 2016) SEC Charges Lawyer with Stealing Investor Money in Eb-5 Offerings The Securities and Exchange Commission today charged a California-based attorney with defrauding investors seeking to participate in the EB-5 immigrant investor program, stealing their money to buy a yacht and prop up his other businesses. The SEC alleges that Emilio Francisco raised $72 million from investors in China solicited through his marketing firm PDC Capital to invest in EB-5 projects that included opening Caffe Primo restaurants, developing assisted living facilities, and renovating a production facility for environmentally friendly agriculture and cleaning products. Under the EB-5 program, foreign investors can apply to permanently live and work in the U.S. by investing money in certain projects that bring about American jobs. According to the SEC's complaint, Francisco and PDC Capital diverted investor funds from one project to another and outright stole at least $9.6 million that was used to finance Francisco's own businesses and luxury lifestyle. Francisco was allegedly aware that doing so would violate federal regulations and jeopardize any visas for the foreign investors. The SEC's complaint charges Francisco, PDC Capital, and 20 other Francisco-controlled businesses with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint also alleges that Francisco and PDC Capital aided and abetted the other defendants' violations of Section 10(b) and Rule 10b-5(b), and that Francisco is also liable under section 20(a) of the Securities and Exchange Act of 1934 as a control person of the entity defendants. The SEC is seeking an emergency asset freeze and a court-appointed receiver over Francisco's businesses involved in the schemes. The SEC's investigation has been conducted in the Los Angeles office by Adrienne D. Gurley, Jasmine Starr, and Christopher M. Conte, and the case has been supervised by Spencer Bendell, Alka N. Patel and John W. Berry. The SEC's litigation is being led by John B. Bulgozdy. The SEC appreciates the assistance of the U.S. Citizenship and Immigration Services. SEC Complaint