Raymond James has been named in two related class action lawsuits alleging the firm and associated parties deceived investors over various assets and transactions pertaining to EB-5 immigrant visa investor projects based in Vermont, Law360 writes.
In a complaint filed Monday in the U.S. District Court for the Southern District of Florida, Carlos Enrique Hiller Sanchez and a group of other plaintiffs are seeking to recoup $71.5 million from Raymond James and fund manager Joel Burstein, reports Law360.
Hiller Sanchez’s suit follows a similar class action filing in the same court last week by another investor, Alexandre Daccache, a Brazilian national claiming that over $350 million invested into an EB-5 program never made it into the target investments, but instead was paid into other projects and lined the pockets of co-defendant Ariel Quiros, the owner of Jay Peak, a ski resort in Vermont, according to Law360.
The EB-5 visa program is designed to reward foreign nationals with U.S. permanent residency green cards as a result of investing in projects that create jobs.
Hiller Sanchez alleges the firm and Burstein violated the SEC Act of 1934, and assisted in fraud and a fiduciary breach, Law360 writes.
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