New Orleans Cautionary Tale

The principals of New Orleans Mayor’s Office RC (www.nobleoutreach.com) are named in a suit in Federal Court brought by 27 EB-5 investors who allege fraud and mismanagement. The court has yet to judge the validity of the finger-pointing, but it’s clear at least that this case exemplifies a diversified investment strategy gone very wrong.  With this case in mind, I can see why USCIS is demanding extreme clarity and specificity in the I-924 and I-526 petitions regarding path and use of investor funds. See the article EB-5 Investors File Suit Against New Orleans Regional Center for a summary of the key issues and a link to the case. Those responsible for drafting offering documents for EB-5 deals should pay special attention, and note the risk of inadequate disclosures.

About Suzanne (www.lucidtext.com)
Lucid Professional Writing provides writing and editing services for businesses and scholars, and specializes in assisting clients to prepare business plans for filing with U.S. Citizenship and Immigration Services.

One Response to New Orleans Cautionary Tale

  1. Joe Whalen says:

    A minor clarification. The Mayor’s Office of Economic Development (MOED) is not one of the named defendants. Instead, it is the folks who were/are under contract to the MOED who have been sued along with a plethora of small companies that were established.

    The Complaint is against (1) defendants William B. Hungerford, Jr. and Timothy O. Milbrath (hereinafter, the “Individual Defendants”); (2) defendants 3200 Burgundy Street, LLC, Ballard Outreach, LLC, Bartone, LLC, Bay-Algiers-JV, LLC, Bay-Bourbon-Ritas, LLC, Bay-Canal PJs, LLC, Bay-NOLA-Hospitality, LLC, Bay-NOLA-Mgmt, LLC, Bay-NOLA-Ventures-MD, LLC, Bay-One-Capital, LLC, Bay-PJs, LLC, Bay-Tulane PJs, LLC, Bay-Wow Franchise 2, LLC, Bay-Wow, LLC, Bywater Holdings, LLC, Eleanor Holdings, LLC, Maurepas Foods, LLC, Noble-Franchise 1&3, LLC, Noble-Lodging Partners, LLC, Noble Lending Holdings, LLC, NobleOutReach-NOLA, LLC, NobleOutReach, Ltd., LLC, Noble-Employees, LLC, NobleReach-NOLA, LLC, NOP, LLC, Rita’s Fajitas NOLA, LLC, Rita’s Tequila Bar Nola, LLC, Timone, LLC, VP Nola 2, LLC, VP Nola 2-WOW, LLC, VP Nola Land 2, LLC, VP Nola, LLC, and NobleOutReach Original Principals, LLC (the “Louisiana Entity Defendants”); (3) obleOutReach, LLC and Bay-NOLA Ventures MD, LLC (the “Maryland Entity Defendants”); (4) defendants Noble-RealEstate-GP, LLC and Noble-REManagement, LLC (the “Delaware Entity Defendants”); and (5) defendant NobleRealEstateFund, L.P. (the “Nominal Defendant” or the “Fund”)…

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