A private firm that previously managed South Dakota’s investment-for-visa program says the state defamed the company, caused it to lose revenue and interfered with its business relationships.
SDRC Inc., which oversaw the EB-5 visa program in South Dakota until 2013, filed a response last week to a state lawsuit, asked that the government’s claims be denied and requested damages for the company. The state’s October suit seeks records from SDRC and recovery of state costs, among other requirements.
The complicated EB-5 scandal has included state and federal investigations and an inquiry into the suicide of a former government official accused of contributing to its mismanagement.
The litigation comes as the governor’s economic development office is defending its ability to administer the program to a federal immigration agency. U.S. Citizenship and Immigration Services notified the state in late September that it intended to end South Dakota’s participation, and Gov. Dennis Daugaard recently said his administration wants to spare investors who might be harmed if it is terminated.
Read more by clicking below image