23 Chinese nationals claim they were misled into investing more than $12.1m in failed casino projects.

In a lawsuit filed in the New York State Supreme Court, members of the American Northern Marianas Economic Development Fund stated that investment opportunities connected to development projects in the Northern Mariana Islands (an archipelago in the western Pacific, north of Guam) were misrepresented. The lawsuit focuses in particular on a Titanic-themed resort and casino on Tinian.

Despite plans for a $360m project, construction never began. The developer, Alter City Group, claimed the project became unviable due to China’s ban on its citizens traveling for the purpose of gambling.

The investors, however, argue that the project collapsed because of false promises, mismanagement, and misrepresentation by the developer.

The lawsuit names several business figures, immigration agents, law firms, and attorneys, including Xianjun Meng, Managing Director of the American Northern Marianas Regional Center and CEO of Bridge Investment Group LLC.

The plaintiffs say they were deceived into investing nearly $12.1m, plus hundreds of thousands of dollars in fees, based on promises that their money would be used to finance the development of the resort. According to the complaint, they were also enticed through participation in the EB-5 investor visa program.

EB-5 grants foreign investors permanent U.S. residency if they invest in a U.S. commercial enterprise, create at least 10 full-time jobs for U.S. citizens, and invest a minimum of $800,000.

The lawsuit states that the job-creation model used to secure EB-5 approval was flawed, noting that, due to the limited number of U.S. citizens on Tinian, the program’s requirements were unlikely to be met.

The plaintiffs are seeking restitution of misappropriated funds, damages, and the removal of the defendants from control over the American Northern Marianas Economic Development Fund. In total, it is believed the fund loaned around $64m to Bridge Investment Group.

Source