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October 4, 2010

NYCRC misleads Chinese investors about project (erroneous, stale Schumer claim about jobs); also, investors would get no profit, just green cards

Atlantic Yards Report

Thanks to a professional translator, we can now understand much more how the New York City Regional Center (NYCRC) is misleadingly promoting the EB-5 investment into Atlantic Yards, overpromising the number of jobs, muddying the definition of the "project" at hand, and using (and misusing) quotes from dignitaries such as Mayor Mike Bloomberg and Senator Chuck Schumer.

The information comes from the web site set up by Kunpeng International Business Consulting, authorized agent for the NYCRC. (Here's another example of the NYCRC misleading investors.)

Also, we learn what collateral Forest City Ratner is offering: development rights to Phase 2 of the project, a highly problematic guarantee, given the complexity of development.

Misleading ties to NBA

Kunpeng International is promoting an October 12 conference for investors in Beijing as the "New York NBA Coliseum (Stadium) and Infrastructure Construction Project" and the "Brooklyn Stadium and Infrastructure Project." Nets stars Brook Lopez and Devin Harris are at the top.

But the investment sought has little or nothing to do with the arena.

Rather, the $249 million in low-cost (no-cost?) financing sought by Forest City Ratner--$500,000 from 498 millionaires, who each must create or retain ten direct or indirect jobs--would support a new railyard and perhaps help pay off a land loan, Ratner told the Wall Street Journal.

Financing and the buying of green cards

According to another Kunpeng page (translated), immigrant investors must put in $538,000 and, after five years, get the full return of the $500,000 principal and green cards for the entire family. There's no financial gain.

While investors in other EB-5 projects can get a financial return, this confirms the charge that the EB-5 program can allow the buying of a green card....

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NoLandGrab: Mainstream media, consider this your wake-up call! Norman Oder has done all the groundwork — how about a little follow-up?

Posted by eric at October 4, 2010 12:07 PM