Investment Dispute Resolution

Reid & Wise has a highly experienced team dedicated to resolving EB-5 investment disputes. For more than a decade, we have represented over 10,000 EB-5 investors from around the world in a wide range of investment-related disputes. In terms of the number, complexity, and results of the matters we have handled, our practice stands at the forefront of the industry. In recent years, many of our successful cases have become industry benchmarks, securing meaningful recoveries for investors while helping to improve the legal and regulatory landscape of the EB-5 industry.

Our EB-5 Litigation Team

Our litigation team was specifically assembled to handle EB-5 investment litigation and dispute resolution. Before joining the firm, many of our attorneys practiced at leading U.S. law firms. Our multidisciplinary team includes securities litigators, investment fund attorneys, bankruptcy attorneys, immigration attorneys, certified public accountants, auditors, and fund-management consultants. This breadth of experience enables us to address EB-5 disputes from multiple perspectives, including litigation, securities regulation, fund governance, bankruptcy and restructuring, immigration consequences, and financial auditing.

In recognition of our accomplishments in EB-5 investment litigation, our attorneys have been selected to Thomson Reuters’ Super Lawyers list for four consecutive years and recognized by EB5 Investors Magazine as leading EB-5 litigation attorneys representing investors. Our team has also been recognized by Chambers Spotlight for excellence in commercial litigation.

A Proven Track Record in EB-5 Investment Litigation

Reid & Wise is committed to protecting its clients’ interests in the most efficient and cost-effective manner possible. Depending on the circumstances of each matter, we employ a combination of court litigation, arbitration, bankruptcy proceedings, investigations and discovery, negotiations, and out-of-court settlements. Through these strategies, we have achieved a series of meaningful results for our clients, including:

• Represented investors in the Cupertino Project in San Francisco and obtained a court restraining order freezing $49 million, resulting in a $539,000 repayment option for each of the 99 investors.
• Represented investors in a New York fund and obtained a temporary restraining order from the New York State Supreme Court freezing over $150 million, resulting in a repayment of $20.5 million for investors, and negotiated a redeployment plan with the fund manager.
• Represented over 80 investors in the Florida Henderson Hotel project and successfully enjoined senior lender from foreclosure actions, and obtained full repayment of the EB-5 loan principal and interest of approximately $53.6 million.
• Represented over 150 investors in the Beach Orangethorp project in Los Angeles, successfully removing the fund manager and taking control of the fund.
• Represented investors in a Seattle hotel project in bankruptcy court proceedings, securing more than $7 million in settlement payments and reimbursement of expenses from the senior lender.
• Represented investors in the 1500 Canal Street project, successfully replacing the manager and gaining control of the project through investor voting and negotiations.
• Represented investors and lenders in proceedings before the New York State Supreme Court, obtaining a judgment that enabled the operating company to gain control of a landmark building in downtown Buffalo.
• Represented the fund manager of an EB-5 project in arbitration involving a California hotel chain, securing an arbitration award of more than $23 million for the client.
• Represented investors in a noodle restaurant franchise fraud investigation and reported the case to government authorities.
• Represented 27 investors in a Texas fund and obtained a settlement payment of $13.6 million.
• Represented 8 investors in a Texas real estate fund and obtained a settlement payment of $2,680,000.
• Represented 9 investors in bringing a lawsuit in Virginia and obtained a settlement providing for repayment of $560,000 to each investor.
• Successfully secured a court order on behalf of an EB-5 investor in New York Royal Hotel Project, directing the project executives to personally appear at a bank to give the client a full refund of their investment.
• Successfully represented a single investor in a Long Beach project and obtained a record $1.46 million pre-litigation settlement payment.
• Successfully represented two EB-5 investors in the GTA project and obtained full repayment of their capital contributions.
• Represented investors in numerous EB-5 projects to amend operating and partnership agreements and design redeployment plans.
• Represented a group of investors in Velocity project in California and obtained partial payment from the bankruptcy court.
• Represented dozens of EB-5 investors in negotiating buyouts of their investments in projects.
• Represented groups of investors in several projects under SEC receivership, actively monitoring the status of the projects and maintaining regular communication with the receivers.
• Represented multiple investors in an L-1 intracompany manager scheme and recovered their investments.

Claims and Remedies We Pursue for EB-5 Investors

Investors who have suffered losses or face heightened risks arising from material misrepresentations or omissions, investment fraud, fraudulent inducement, unauthorized use or transfer of investment funds, fraudulent conveyances, breaches of fiduciary duty, conversion or misappropriation of assets, breaches of contract, mismanagement, conflicts of interest, or unauthorized management actions—including unauthorized loan extensions, restructurings, redeployments, refinancings, or asset dispositions—may seek our professional assistance. Depending on the circumstances, we represent investors in pursuing claims and remedies involving:

• Securities fraud and violations of federal or state securities laws;
• Common-law fraud, fraudulent inducement, and misrepresentation;
• Breach of fiduciary duty;
• Breach of contract and breach of the implied covenant of good faith and fair dealing;
• Conversion, misappropriation, or unauthorized disposition of investor assets;
• Fraudulent transfers and improper asset transfers;
• Unjust enrichment;
• Mismanagement, conflicts of interest, and ultra vires management actions;
• Unauthorized loan extensions, restructurings, redeployments, asset sales, or additional financing;
• Denial of access to books, records, and project financial information;
• Accounting, tracing of funds, and restitution;
• Removal or replacement of fund managers, general partners, or other controlling parties;
• Injunctive relief, asset freezes, receiverships, damages, and other equitable remedies; and
• Direct, derivative, class, arbitration, and bankruptcy-related proceedings.

Contact Our EB-5 Litigation Team

Reid & Wise is located at One Penn Plaza, 250 W. 34th Street, 20th Floor, New York, New York. The firm also has a Ministry-of-Justice approved Representative Office in Shanghai. The firm can be contacted at +1 (212) 858-9968 (New York) and +86 400-006-9556 (Shanghai). For inquiries regarding EB-5 disputes, please email sye@reidwise.com.