PATH AMERICA KINGCO LLC/ ID1031910033
Page 2
Attachment to ITD Coversheet
NOTICE OF INTENT TO TERMINATE
Form I-924, Application for Regional Center Under the Immigrant Investor Program
Path America KingCo LLC
This notice is in reference to the approved designation of Path America KingCo LLC (the
“Regional Center”), as a regional center in the Immigrant Investor Program (the “Program”).1
The purpose of this notice is to notify the Regional Center that, pursuant to 8 C.F.R. §
204.6(m)(6), U.S. Citizenship and Immigration Services (“USCIS”) intends to terminate the
participation of the Regional Center in the Program because it no longer serves the purpose of
promoting economic growth.
The regulation at 8 C.F.R. § 204.6(m)(6) provides:
Termination of participation of regional centers. To ensure that regional centers
continue to meet the requirements of section 610(a) of the Appropriations Act, a
regional center must provide USCIS with updated information to demonstrate the
regional center is continuing to promote economic growth, improved regional
productivity, job creation, or increased domestic capital investment in the
approved geographic area. Such information must be submitted to USCIS on an
annual basis, on a cumulative basis, and/or as otherwise requested by USCIS,
using a form designated for this purpose. USCIS will issue a notice of intent to
terminate the participation of a regional center in the pilot program if a regional
center fails to submit the required information or upon a determination that the
regional center no longer serves the purpose of promoting economic growth,
including increased export sales, improved regional productivity, job creation, and
increased domestic capital investment. The notice of intent to terminate shall be
made upon notice to the regional center and shall set forth the reasons for
termination. The regional center must be provided 30 days from receipt of the
notice of intent to terminate to offer evidence in opposition to the ground or
1 Section 610 of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies
Appropriations Act, 1993, Pub. L. No. 102-395, 106 Stat. 1828 (1992), as amended by section 116 of Pub. L. No.
105-119, 111 Stat. 2440 (1997); section 402 of Pub. L. No. 106-396, 114 Stat. 1637 (2000); section 11037 of Pub.
L. No. 107-273, 116 Stat. 1758 (2002); section 4 of Pub. L. No. 108-156, 117 Stat. 1944 (2003); section 1 of Pub. L.
No. 112-176, 126 Stat. 1325 (2012); and section 575 of Pub. L. No. 114-96, 129 Stat. 2193 (2015) (hereinafter
“Appropriations Act”).
8
-8-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 9 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 3
Attachment to ITD Coversheet
grounds alleged in the notice of intent to terminate. If USCIS determines that the
regional center’s participation in the Pilot Program should be terminated, USCIS
shall notify the regional center of the decision and of the reasons for termination.
As provided in 8 CFR § 103.3, the regional center may appeal the decision to
USCIS within 30 days after the service of notice.
I. Procedural History
A. Initial Designation
On August 6, 2013, USCIS designated Path America KingCo LLC as a regional center following
approval of its application to participate as a regional center in the Immigrant Investor Program
(RCW1031910033). The managing member of Path America KingCo LLC is Path America,
LLC.2 Based on the initial designation, the Regional Center obtained approval for the following
geographic area:
Name of State Counties
Washington King, Pierce and Snohomish County
B. Amendments
On July 13, 2015, the Regional Center filed an amendment to its designation seeking approval
for exemplar projects involving three new commercial enterprises (each an “NCE”), two of
which are the subject of several pending I-526 petitions. Each of the projects identified in the
amendment is discussed in Section C. below. This amendment request has not yet been
adjudicated.
C. Regional Center Projects
USCIS has received a total of 178 Forms I-526, Immigrant Petition by Alien Entrepreneur filed
by petitioners associated with the Regional Center based on investments in two Regional Center-
associated NCEs, as shown in the table below. Of these Form I-526 petitions, none have been
approved to date.
2 According to the Washington Secretary of State Corporations Division https://www.sos.wa.gov
9
-9-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 10 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 4
Attachment to ITD Coversheet
New Commercial
Enterprise Job-Creating Entity
Number of I-
526 Petitions
Filed
Number of I-526
Petitions Approved
to Date
Aggregate EB-5
Capital Received
Path America Tower, LP Potala Tower Seattle, LLC 162 0 $12,200,000
Path Tower Seattle, LP Potala Tower Seattle, LLC 16 0 0
Totals -- 178 0 $12,200,000
In connection with a Form I-526 filing, USCIS reviewed organizational and transactional
documents for a NCE, Path America Tower, LP (“Path America NCE”). This NCE planned to
pool $75.50 Million in capital investments from 151 EB-5 investors, and invest the funds into a
job creating entity - Potala Tower Seattle, LLC (the “JCE”). The JCE planned to use the funds to
the develop and operate a mixed-use property called “Potala Tower” that will have a 9-story
underground parking structure, a restaurant and wine bar, a 142-room hotel and a 344-unit
residential apartment complex. The project is located at 2116 4th
Ave, Seattle, Washington and a
total of 2,875 jobs are expected to be created as a result of the construction and operation of the
“Potala Tower” project. According to the Regional Center’s filings, this project is currently in
the early stages of development.
In connection with another Form I-526 filing, USCIS reviewed organizational and transactional
documents for another NCE, Path Tower Seattle, LP (“Path Tower NCE”). This NCE also
planned to pool $46.50 Million in capital investments from 93 EB-5 investors, and invest the
funds into the same JCE- Potala Tower Seattle, LLC, with the intention of financing the same
Potala Tower project.
Path America Tower, LP and Path Tower Seattle, LP are two of the three NCEs also identified in
the Regional Center’s aforementioned July 13, 2015 amendment request. The third NCE
contemplated by the amendment request is Path Shoreline, LP (the “proposed NCE”). This NCE
would pool $52.5 million in capital investment from 105 EB-5 investors and invest the funds into
a proposed job creating entity called “Potala Shoreline, LLC.”3 As such, Path Shoreline, LP
would finance a multifamily residential development in Shoreline Washington; specifically the
project was forecast to result in 329 residential units, 297 parking stalls and amenity space for
the residents. To date, no I-526 petitions associated with Path Shoreline, LP have been filed with
USCIS.
3 Potala Shoreline, LLC and Potala Tower Seattle, LLC are collectively referred to herein as the
“JCEs”.
10
-10-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 11 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 5
Attachment to ITD Coversheet
D. Annual Reports (Forms I-924A)
The Regional Center has filed 2 Forms I-924A, Supplement to Form I-924, and the table below
summarizes the information provided to USCIS in those forms regarding the aggregate amount
of capital investment from EB-5 petitioners, and the aggregate number of direct and indirect jobs
created and maintained as a result of those investments per year.
Fiscal
Year Receipt No.
Date
Received
Aggregate EB-5
Capital Investment
Aggregate
Direct/ Indirect
Job Creation
Aggregate Jobs
Maintained
FY2013 RCW1400351596 12/31/2013 0 0 0
FY2014 RCW1435752243 12/23/2014 $27,200,000 0 0
E. Regional Center Principal
At the time of its designation, Mr. Lobsang Dargey was identified as the principal of the
Regional Center. According to the Regional Center website provided in the FY2014 I-924A
filing, Mr. Dargey continues to be the CEO of the Regional Center as of the date of this notice.4
F. United States Securities and Exchange Commission Civil Action
On August 24, 2015, the United States Securities and Exchange Commission (the “SEC”)
brought a civil action against the Regional Center, some of its related EB-5 entities5, and
Lobsang Dargey, among other named defendants (collectively referred to herein as
“Defendants”). The civil law enforcement action was brought against Defendants to “protect the
interests of current and future investors” from potentially millions of dollars of losses as a result
of Defendants’ violations of federal securities laws.
The SEC’s complaint (the “Complaint”) asserts that the Regional Center and Mr. Dargey
“exploited a federal visa program to defraud investors seeking investment returns and a path to
4 www.pathamerica.com
5 Path America Tower, LP, Path Tower Seattle, LP and Potala Tower Seattle, LLC are named as Defendants and
Potala Shoreline, LLC is named as a Relied Defendant in the referenced complaint. Note that Path Shoreline, LP
was not listed in the SEC’s complaint; however at the time the complaint was filed, Path Shoreline, LP had not
received any EB-5 funds.
11
-11-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 12 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 6
Attachment to ITD Coversheet
United States residency.” 6
The Complaint goes on to say that “[m]ost of the direct victims of this
fraud are foreign nationals seeking residency in the United States.”7 The complaint further notes
“[a]s the fraud described is ongoing and likely to continue, and millions of dollars of investor
funds remain at risk of dissipation, the [SEC] seeks emergency ex parte relief in this action to
enjoin violations of the anti-fraud provisions of the federal securities laws, freeze assets, and
secure other equitable relief.”8
On August 24, 2015, the U.S. District Court for the Western District of Washington (the
“District Court”) entered a series of temporary restraining orders that enjoined the Regional
Center, some of its related EB-5 entities, and Mr. Dargey from participating in the routine
activities required to engage in day-to-day business operations; after hearing arguments from the
SEC and the defendants and considering papers and responses submitted by both sides, on
October 6, 2015, the District Court affirmed the August 24 temporary restraining orders by
issuing an order granting the SEC’s motion for a preliminary injunction and denying the
Defendants’ motion to modify the temporary restraining order.9 On October 6, 2015, the District
Court also issued a preliminary injunction for the duration of the civil action.10
In doing so, the
District Court found that the SEC had satisfied its burdens for a preliminary injunction and
demonstrated a likelihood of success on the merits of the civil action. The District Court found
good cause to enjoin the defendants, including the Regional Center, the Path America NCE, the
Path Tower NCE, the JCEs and Mr. Dargey, from “(1) directly or indirectly participating in the
issuance, offer, or sale of any security” or “(2) directly or indirectly soliciting any person or
entity to purchase or sell any security.”11
The District Court also entered a series of orders freezing the assets of the Regional Center, the
Path America NCE, the Path Tower NCE and the JCEs, and the related escrow accounts. On
August 24, 2015 and again on October 6, 2015, the District Court ordered that a freeze be placed
6 SEC vs. Path America, LLC, et al. Complaint ¶ 1. Civil Action No. 2:15-cv-01350. (W.D. Wash. filed Aug. 24,
2015). 7 Id. at ¶ 2.
8 Id. at ¶ 5.
9 SEC vs. Path America, LLC, et al. Order Granting Motion for Preliminary Injunction and Denying Motion to
Modify the Temporary Restraining Order. Civil Action No. 2:15-cv-01350. (W.D. Wash. filed Oct. 6, 2015). 10
SEC vs. Path America, LLC, et al. Order Granting Motion for Preliminary Injunction. Civil Action No. 2:15-cv-
01350. (W.D. Wash. filed Oct. 6, 2015). 11
SEC vs. Path America, LLC, et al. Temporary Restraining Order ¶ IV and V. Civil Action No. 2:15-cv-01350.
(W.D. Wash. filed Aug. 24, 2015) and SEC vs. Path America, LLC, et al. Order Granting Motion for Preliminary
Injunction ¶ IV and V. Civil Action No. 2:15-cv-01350. (W.D. Wash. filed Oct. 6, 2015).
12
-12-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 13 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 7
Attachment to ITD Coversheet
on all monies and assets in all accounts at any bank, financial institution or brokerage firm, all
certificates of deposit, and other funds or assets, held in the name of, for the benefit of, or over
which the account authority is held by Mr. Dargey, the Regional Center, or the Path America
NCE, the Path Tower NCE or the JCEs.12
The orders further state that an immediate freeze shall
be placed on all monies and assets held in accounts at any bank or financial institution in
connection with escrow agreements relating to Path America Tower LP, Path Tower Seattle LP,
or Path America Farmer’s Market LP. 13
Finally, on October 22, 2015, the District Court granted the SEC’s motion to appoint a receiver
and ordered that a receiver be placed in charge of the Regional Center’s operations for the
purpose of “marshalling and preserving” all assets of the Defendants that (a) are attributable to
funds derived from investors or clients of the Defendants; (b) are held in constructive trust for
the Defendants; (c) were fraudulently transferred by Defendants; and/or (d) may otherwise be
includable as assets of the estates of the Defendants.14
II. Analysis
A. Failure to Promote Economic Growth
Under 8 C.F.R. § 204.6(m)(6), “USCIS will issue a notice of intent to terminate . . . upon a
determination that the regional center no longer serves the purpose of promoting economic
growth, including increased export sales, improved regional productivity, job creation, and
increased domestic capital investment.”
To ensure that a regional center continues to meet the requirements of section 610(a) of the
Appropriations Act, USCIS must be assured that the terms and conditions of the operation of the
regional center remain valid after the regional center receives designation for participation in the
Program. This includes the scope and nature of the projects used as the basis for the job creation
methodologies presented in the initial designation application or subsequent amendments. In
12
SEC vs. Path America, LLC, et al. Temporary Restraining Order ¶ VI. Civil Action No. 2:15-cv-01350. (W.D.
Wash. filed Aug. 24, 2015) and SEC vs. Path America, LLC, et al. Order Granting Motion for Preliminary
Injunction ¶ VI. Civil Action No. 2:15-cv-01350. (W.D. Wash. filed Oct. 6, 2015). 13
Id. at ¶ VII. 14
SEC vs. Path America, LLC, et al. Order Appointing Receiver Civil Action No. 2:15-cv-01350. (W.D. Wash. filed
Oct. 22, 2015); See also Sanjay Bhatt, Developer Dargey Loses Control of Everett Company Over Fraud Charges,
THE SEATTLE TIMES (October 23, 2015) available at http://www.seattletimes.com/business/real-estate/dargeys-path-
america-put-into-receivership/.
13
-13-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 14 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 8
Attachment to ITD Coversheet
addition, all regional centers must comply with EB-5 statutory and regulatory provisions in order
to maintain a regional center within which investors seeking to obtain permanent resident status
under section 203(b)(5) of the INA will be able to invest in a new commercial enterprise with a
qualifying investment that will benefit the United States economy and create jobs, including jobs
created indirectly through the new commercial enterprise.
USCIS has considered all evidence provided “for relevance, probative value, and credibility,
both individually and within the context of the totality of the evidence,” in determining whether
the Regional Center’s continued participation is justified under the regulations by a
preponderance of the evidence. See Matter of Chawathe, 25 I&N Dec. 369, 376 (AAO 2010).
For the reasons set forth below, USCIS has determined by a preponderance of the evidence that
the Regional Center no longer serves the purpose of promoting economic growth in compliance
with the Program.
1. Lack of Credibility Impacting Regional Center’s Ability to Promote Economic Growth
USCIS has determined, through the existing record and facts outside of the record detailed
below, that the Regional Center will not be able to promote economic growth in compliance with
the Program.
The SEC allegations that the management of the Regional Center, including Mr. Dargey,
engaged in improper or illegal behavior, coupled with the District Court’s orders, undermine the
Regional Center’s credibility and cast considerable doubt on the credibility of all of its
operations.
As noted above, the District Court restrained the Regional Center, some of its related EB-5
entities, and Mr. Dargey from issuing, offering or selling any securities. The District Court also
entered a series of orders which freeze the assets of the Regional Center, the Path Tower NCE,
the Path America NCE and the JCEs, and their related escrow accounts. The series of orders also
prevent any assets of the Regional Center, the Path Tower NCE, the Path America NCE and the
JCEs, and their related escrow accounts from being used to facilitate the necessary day-to-day
business operations of the Regional Center. Furthermore, as noted above, on October 22, 2015,
the District Court granted the SEC’s motion to appoint a receiver and ordered that a receiver be
placed in charge of the Regional Center’s operations for the purpose of “marshalling and
14
-14-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 15 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 9
Attachment to ITD Coversheet
preserving” the assets of the Defendants rather than for the purpose of promoting economic
growth.15
Based on the District Court’s orders granting the asset freeze, the preliminary injunction and the
appointment of a court ordered receiver, considerable doubt is cast on the credibility of all of the
Regional Center’s operations. Moreover, this evidence calls into question whether the Regional
Center, the Path America NCE, the Path Tower NCE and the JCEs can continue to operate
financially or serve the purpose of promoting economic growth. The issues outlined above cast
considerable doubt on the credibility of the Regional Center and its operations and USCIS has
determined that it is more likely than not that the Regional Center no longer serves the purpose
of promoting economic growth in compliance with the Program.
2. Diversion of EB-5 funds
The allegations in the SEC’s filings indicate that EB-5 funds were used for purposes that are
inconsistent with the business plans submitted to USCIS by the Regional Center and in
furtherance of job creation.16
For example, evidence presented to USCIS does not demonstrate
how withdrawals at multiple casinos in Nevada or the purchase of a personal residence for Mr.
Dargey could be an appropriate use of funds for the business of constructing and operating a
hotel, restaurant and wine bar, and residential apartment complex in Seattle, Washington as
described in the business plans submitted to USCIS.17
Moreover, evidence provided to USCIS demonstrates that between May 2014 and August 2014
more than $5.5 million was diverted from Potala Tower Seattle, LLC’s account to an account for
Potala Village Kirkland, LLC. 18
And between October 2014 and May 2015 more than $7.2
15
SEC vs. Path America, LLC, et al. Order Appointing Receiver Civil Action No. 2:15-cv-01350. (W.D. Wash. filed
Oct. 22, 2015). 16
Specifically, as detailed to USCIS, the majority of job creation relating to the Potala Tower Project was based on
construction expenditures. The use of EB-5 funds for purposes unrelated to construction and the furtherance of job
creation not only casts considerable doubt on the legitimacy of the Regional Center’s operations predicated upon the
use of EB-5 funds in furtherance of job creation, but may also potentially impact the Regional Center’s investors
whose petitions must rely on the creation of such jobs for program eligibility. 17
Declaration of Michael D. Foley in Support of Plaintiff’s Motion of Temporary Restraining Order. Civil Action
No. 2:15-cv-01350. (W.D. Wash. filed Aug. 24, 2015), Ex. 10. In reviewing the record, USCIS finds the signed
declaration of Mr. Foley, who is licensed as a Certified Public Accountant in the State of California, credible,
probative and relevant. 18
Declaration of Michael D. Foley in Support of Plaintiff’s Motion of Temporary Restraining Order. Civil Action
No. 2:15-cv-01350. (W.D. Wash. filed Aug. 24, 2015), Ex. 14.
15
-15-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 16 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 10
Attachment to ITD Coversheet
million was diverted from a Potala Tower account to an account for Potala Shoreline, LLC.19
Both Potala Kirkland Village LLC and Potala Shoreline, LLC are businesses owned by Mr.
Dargey, which are unrelated to the business activities of either Path America Tower, LP or Path
Seattle Tower, LP.20
Evidence provided to USCIS also demonstrates that between July 31, 2014 and May 15, 2015
over $1.4 million was transferred from a Potala Tower account to a Path America Asia Limited
account, a Hong Kong account over which Mr. Dargey has sole control.21
Again these transfers
do not appear to be related to the business activities of Path America Tower, LP or Path Seattle
Tower, LP.
Based on the order granting the SEC’s motion for preliminary injunction and denying
Defendants’ motion to modify the restraining order, evidence also demonstrates that
approximately $9.3 million and $2.3 million in EB-5 investor funds were diverted and used to
pay commissions to agents in China and for expenditures marked as “direct overhead fees”,
respectively.22
These uses of investor funds are inconsistent with the business plans and
organizational documents submitted to USCIS by the Regional Center.
For example, according to the Path America Tower, LP and Path Tower Seattle, LP Private
Placement Memoranda, any commissions or other fees paid to any party in connection with the
offer and sale of interests in these NCEs are not to be paid out of the EB-5 investors’ funds.23
19
References to a “Potala Tower account” are to the bank account for Potala Tower Seattle, LLC which received
funds from both the Path America NCE and Path Tower NCE. 20
Even though Potala Shoreline, LLC was identified as a proposed job creating entity associated with the Regional
Center (through the proposed NCE Path Shoreline, LP), Potala Shoreline, LLC was not associated with Potala
Tower Seattle, LLC -- the JCE for the Potala Tower project. The diversion of funds from the Potala Tower project
to Potala Shoreline, LLC was contrary to the Regional Center’s representations to USCIS regarding funds for both
the Potala Tower project and Potala Shoreline, LLC. 21
Declaration of Michael D. Foley in Support of Plaintiff’s Motion of Temporary Restraining Order. Civil Action
No. 2:15-cv-01350. (W.D. Wash. filed Aug. 24, 2015), Ex. 17. 22
SEC vs. Path America, LLC, et al. Order Granting Motion for Preliminary Injunction and Denying Motion to
Modify the Temporary Restraining Order. Civil Action No. 2:15-cv-01350. (W.D. Wash. filed Oct. 6, 2015). 23
Page 14 of each of the PPMs states, “Any such commissions or other fees paid to any party in connection with the
sale of Interest pursuant to this Offering, both currently and in the future, shall not be paid out of the proceeds of
Capital Contributions of Limited Partners. The Company and Borrower intend to pay such commissions, if any,
from proceeds of the Administrative Fee, profits from the Borrower operations, and other non-EB-5 financing, as
available.” The defined terms in the forgoing quote have the meanings assigned in the referenced PPMs.
16
-16-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 17 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 11
Attachment to ITD Coversheet
Based on the allegations set forth in the SEC’s complaint and the court’s findings in the order
granting the motion for preliminary injunction and denying the motion to modify the temporary
restraining order, it appears that EB-5 funds were diverted and used for purposes unrelated to the
business activities of Potala Tower Seattle, LLC and the Potala Tower project.24
This diversion
of EB-5 funds away from job creating purposes casts considerable doubt on the Regional
Center’s operations. As such, USCIS has determined by a preponderance of the evidence that
the Regional Center no longer serves the purpose of promoting economic growth.
3. Lack of Regional Center due diligence, monitoring and oversight
The Regional Center’s letter of designation, dated June 6, 2011, specifically stated that the
Regional Center:
…must monitor all investment activities under the sponsorship of your regional
center and to maintain records, data and information in order to provide the
information required on the Form I-924A supplement.
As such, the Regional Center bears responsibility for mismanagement of EB-5 funds and any
failure to oversee deployment of such funds because the Path America NCE and the Path Tower
NCE were managed and controlled by the Regional Center, and the Regional Center
management, including Mr. Dargey, also managed and controlled these NCEs, serving as the
general partner of each. By engaging in or failing to stop the diversion of investor funds, the
Regional Center failed to ensure that the EB-5 funds were made available for job creation
purposes and in promotion of economic growth. Here, according to the SEC’s allegations of
fraud and misappropriation and based on statements from Defendants conceding that they did not
use funds as disclosed in documents submitted to USCIS, the Regional Center and its
management seem to have actively participated in the diversion of investor funds.
Additionally, according to the partnership agreements for the Path America NCE and the Path
Tower NCE, the general partner for each of these NCEs is the Regional Center.25
As noted in
Section 4.2 of the partnership agreements for both Path America Tower, LP and Path Seattle 24
SEC vs. Path America LLC, et al. Complaint. Civil Action No. 2:15-cv-01350. (W.D. Wash. filed Aug. 24, 2015)
(alleging that “Defendants engaged in the scheme to defraud through the misappropriation of investor funds
knowingly or recklessly.”). SEC vs. Path America, LLC, et al. Order Granting Motion for Preliminary Injunction
and Denying Motion to Modify the Temporary Restraining Order. Civil Action No. 2:15-cv-01350. (W.D. Wash.
filed Oct. 6, 2015). 25
Agreement of Limited Partnership of Path America Tower, LP dated October 11, 2013 and Agreement of Limited
Partnership of Path Tower Seattle, LP dated April 16, 2014.
17
-17-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 18 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 12
Attachment to ITD Coversheet
Tower, LP “[t]he Regional Center shall have the exclusive right and power to manage, operate,
and control the NCE and to do all things and make all decisions necessary or appropriate to carry
on the business and affairs of the NCE. In addition to the specific rights and powers herein
granted to the Regional Center, the Regional Center shall possess and enjoy and may exercise all
the rights and powers of a General Partner under the Washington Uniform Limited Partnership
Act, including the full and exclusive power and authority to act for and bind the NCE.”
Therefore the Regional Center, both in its approval letter from USCIS and in the organizational
documents of these two limited partnerships that it sponsored, bears responsibility for the actions
of these limited partnerships (the Path America NCE and the Path Tower NCE). Accordingly,
the diversion of NCE funds, as well as the alleged violation of federal security laws, indicates a
lack of management and oversight by the Regional Center.
Given the District Court’s approval of the temporary restraining order, the asset freeze, the
preliminary injunction, and the appointment of a receiver, USCIS has found that the Regional
Center failed to fulfill its management, monitoring and oversight responsibilities as detailed in
the Form I-924 Instructions and its designation approval letter.
Moreover, due to the temporary restraining order, the asset freeze, the preliminary injunction and
the appointment of a receiver, the Regional Center has insufficient control of its own operations
to properly engage in future management, monitoring and oversight as required by the Program.
As stated above, such failure casts considerable doubt on the credibility of all of its operations.
Thus, USCIS has determined, by a preponderance of the evidence, that the Regional Center no
longer serves the purpose of promoting economic growth.
III. Conclusion
USCIS has determined that the Regional Center does not serve the purpose of promoting
economic growth, including increased export sales, improved regional productivity, job creation,
or increased domestic capital investment. Therefore, USCIS intends to terminate the Regional
Center’s participation in the Program.
In accordance with 8 C.F.R. § 204.6(m)(6), within 30 days from receipt of this notice, the
Regional Center may offer evidence in opposition to the ground or grounds alleged above.
Failure to respond to this notice of intent to terminate will result in termination of the regional
center designation based on the above stated reasons.
18
-18-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 19 of 36
PATH AMERICA KINGCO LLC/ ID1031910033
Page 13
Attachment to ITD Coversheet
Please mail any evidence you wish to provide in opposition to the grounds alleged in this notice
of intent to terminate to the address noted below and include a copy of this letter on top of your
submission.
U.S. Citizenship and Immigration Services
Immigrant Investor Program Office,
131 M Street NE, Mailstop 2235
Washington, DC 20529
19
-19-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 20 of 36
1035590
EXHIBIT 2
EXHIBIT 2
20
-20-
Case 2:15-cv-01350-JLR Document 186 Filed 02/04/16 Page 21 of 36