A Chinese-American immigrant sued a Corona husband and wife team Dec. 1, accusing them in Riverside Superior Court of embezzling $530,000 in investment money intended for a hotel development that would have granted the plaintiff permanent U.S. residence.
Xiaoyan Tang was approached by Bo Chen and Chuan Dong to invest in their Corona development. The couple had already built apartment complexes, but claimed to also be building a hotel, according to the complaint.
The investment
Tang’s 2014 investment would have granted her permanent U.S. residence under the EB-5 program, which gives foreign investors permanent residence after investments of $500,000 that employ 10 workers. Tang received a visa due to her $530,000 investment in the company, believed the development had been made, and moved her family to Southern California.
Tang asserted she found in early 2021 that the money was not used for development, that Chen and Dong had sold their stakes in their company, and that the couple had absconded.
Tang’s residency is now in jeopardy, and multiple other immigration-seeking investors are now in the same situation according to the complaint.
Tang alleged eight causes of action: fraud, breach of written contracts, breach of fiduciary duties, conversion, unjust enrichment, negligence, intentional infliction of emotional distress, violation of Penal Code Section 496 on larceny, and violation of California Corporations Code Section 25400 on fraud.
Tang requests damages at three times her investment, $1,590,000, and punitive damages at nine times her investment, at $4.7 million. Tang also requests the corporate veil on the multiple entities involved with Chen and Dong be pierced, to identify other entities involved in the alleged fraud.
Parties
Dixon Wong and Richard Song, of the Pasadena Law Offices of Dixon Wong & Associates, represent Tang.
Lawyers for Chen and Dong have not been identified.
Riverside Superior Judge John W. Vineyard presides.
Case number: CVRI2105465
Read the complaint here.
