A company that provided financing for a Deadwood hotel and casino through South Dakota's embattled investment-for-visa program is trying to recover $32.5 million loaned to a group of developers whose company hasn't paid back the money for the project, according to a civil lawsuit filed this month.
The financing company, which is managed by the former administrator of South Dakota's EB-5 visa program, is also asking a state court for interest and attorney's fees from Tentexkota LLC and its members. The group rehabilitated the historic Homestake slime plant into the Deadwood Mountain Grand resort, a luxury hotel with nearly 100 rooms and 210 casino games.
Eight members of Tentexkota guaranteed the two loans for $28 million and $4.5 million, which came from immigrant investors through the federal EB-5 program. The program allows people to seek U.S. residency if they invest at least $500,000 in approved projects.