SEC obtains emergency relief in Fleet New York securities fraud case


The SEC recently announced that it has obtained emergency relief, including an asset freeze, in an ongoing fraud case against New York developer Richard Xia (Yi Xia) and his company, Fleet New York Metropolitan Regional Center, LLC.

According to a complaint filed in a Brooklyn federal court, the SEC is claiming that Xia violated the anti-fraud provisions of the federal securities statutes.

The complaint alleges the defendants committed various illegal acts in relation to five EB-5 offerings issued in relation to two building projects – the Eastern Mirage and the Eastern Emerald Project. Specific charges include material misrepresentation regarding financing sources for the projects and the misappropriation of investor funds.

The SEC is seeking a permanent injunction, disgorgement, prejudgment interest, civil penalties, an asset freeze, and the appointment of a monitor, amongst other forms of relief.

“Developers offering securities in connection with the EB-5 program have the responsibility to be truthful with their investors,” said the director of the SEC’s New York Office, Richard Best. “As we allege in our complaint, Xia misappropriated millions of dollars in investor funds and misled investors about the financing for the projects and the experience of the projects’ development and construction team.”

Investment fraud victims have rights

We invest to create a stable future for ourselves and our families. When investors are taken advantage of, it hurts them financially and makes their future uncertain. It also erodes the trust that our economy is built on.

Thankfully, defrauded investors have rights. An experienced securities fraud attorney can evaluate your case, determine if a claim exists, and defend your rights in a court of law. A successful suit may result in a considerable financial award.