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)
Suzanne Lazicki is a business plan writer, EB-5 expert, and founder of Lucid Professional Writing.

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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