LobsangDargey, SEO of the Path America, has been removed from the helm of the Everett-based company following a ruling from U.S. District Court Judge, James Robart. Judge Robart has ordered that assets belonging to Path America be placed under the control of Michael Grassmueck, the official court appointed receiver.
This action was requested by the Securities and Exchange Commission, which filed a civil-securities lawsuit in August, alleging that Lobsang Darcy, of Bellevue, has misappropriated tens of millions of dollars belonging to Chinese citizens. The Chinese investors poured their money into the company in the hope of immigrating to the United States via the EB-5 visa program.
The Federal EB-5 program allows rich Chinese to use their savings to invest in U.S enterprise projects that create at least ten permanent full-time jobs. There are 10,000 places available annually in specially approved areas of high unemployment. Successful investors are then eligible for permanent residency in the United States.
Potala Tower Project
In the case of Path America, the investment projects were the 40-storey Potala Tower on 2116 Fourth Avenue in Seattle, where construction had begun this summer, an apartment and retail project on Grand Avenue, and several more projects in Shoreline and Kirkland. The court appointed receiver, Grassmueck, is now responsible for maximizing the value of the assets owned by Path America, in order to ensure a good return for creditors and investors.
If the court decides that the tens of millions of dollars referred to in the civil-securities lawsuit and allegedly transferred between Path America and Dargey’s two affiliate companies, AMDO Construction and Dargey Enterprises, were indeed misappropriated by LobsangDargey, the receiver will have the power to recover assets.
Dargey Affiliate Companies
Whilst the court order has removed Dargey from the decision making table of Path America, this has not extended to Dargey’s affiliate companies: AMDO Construction, Dargey Enterprises and Potala Farms. As such, the receiver has no control over what happens within these three companies. Dargey’s ownership stake in Path America also remains unaffected. Find more about branding law at branding law firms
Dargey Claims Fifth Amendment
As part of the Judge’s order to appoint a receiver and remove Dargey from a position of control over Path America, the receiver has also been given access to all records held at the company. These include electronic communications between Dargey and his attorneys, who were appointed to advice the company on its various construction projects. As a result of this contentious decision, Dargey’s attorney is now claiming that Dargey’s right to protection under the Fifth Amendment has been jeopardized on the basis that the emails could lead to self-incrimination. Because of this, Dargey has the right to ask for specific documents to be held back from the receiver.
Although a court appointed receiver is supposed to marshal and preserve assets rather than liquidate them, the Chinese investors who sank money into the Potala Tower project are keen to have the building completed as soon as possible so they can apply for their residency visas. Their concern is that the receiver will simply liquidate the asset and deprive their children of the chance to live in the United States.Read More