If a judge agrees, a Chinese company and a Las Vegas real estate developer would complete the beleaguered Potala Tower project in downtown Seattle.
Developer Lobsang Dargey, who launched the 41-story hotel/apartment project, would no longer be involved in the development. But in an unusual move, he would receive $1.8 million to cover legal fees related to the Securities and Exchange Commission civil securities fraud complaint that was filed against him last summer.
U.S. District Court Judge James L. Robart is scheduled on Thursday to hear about the proposal, which SEC lawyers oppose. On Monday, they asked Robart to freeze Dargey's assets and block him from participating in the sale of those assets.
The decision could impact a major development in the heart of Belltown, which has been on hold since the SEC filed its complaint.
Last month, Robart granted the receiver partial approval to sell the tower project and other Dargey developments. Thirteen offers were received, including one from billionaire Paul Allen's company, Seattle-based Vulcan, which said it would pay $30 million for the Potala Tower site, 2116 Fourth Ave., next to the Vulcan-owned Cinerama movie theater.
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