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December 2, 2011

Fraud? Immigrant investors in Atlantic Yards were told their green cards were guaranteed, but New York City Regional Center typically warns investors it makes no warranties

Atlantic Yards Report

Why should the green cards-for-cash scam be any different from all the other Atlantic Yards "guarantees?"

There's a huge gap between what the assurances the New York City Regional Center (NYCRC) gave to potential Chinese investors in Atlantic Yards about the certainty of their expected green cards and the "no warranty" message the firm typically tells investors.

The warning

The following passage appears in the confidential offering memoranda for two previous NYCRC projects, regarding the Brooklyn Navy Yard and Steiner Studios:

In other words, the company offers no warranty and no assurances that the investors, who parked $500,000 for five years and eschewed interest (mostly) in lieu of green cards for themselves and their families, would actually get the green cards.

Presumably, such boilerplate also appeared in the memorandum for the Brooklyn Arena and Infrastructure Project, which sought (and apparently achieved) $249 million from 498 investors, mostly from China.

In China, green cards guaranteed

As I reported last year, in webcast presentations, representatives of the NYCRC offered public assurances that green cards were guaranteed.

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Posted by eric at December 2, 2011 11:25 AM