Two Democrats have been accused of swindling investors out of their money.
According to Politico, Chinese investors contend that two Democrats swindled them out of their money as part of an immigration scam. Virginia Governor Terry McAuliffe (D), and Hillary Clinton’s brother, Anthony Rodham, are being sued for the more than $17 million.
The lawsuit was filed by 32 Chinese citizens who claim Mr. McAuliffe and Mr. Rodham defrauded them out of $560,000 each and for advancing falsehoods that have put these 32 individuals in hot water with the Department of Homeland Security.
Mr. McAuliffe and Mr. Rodham are strong advocates for the manufacturing of electric cars in the US and are tied to many different ventures geared toward this goal. They supposedly convinced these 32 Chinese citizens to invest their money in a company called Greentech.
A program exists in the United States called EB-5, which permits green card applicants to be streamlined through the residency process if their investments create a certain number of US jobs. The two Democrats assured the Chinese nationals that their investment of $560,000 a piece would create more than enough jobs with Greentech that would permit them residency.
Instead, the Department of Homeland Security determined that the investments didn’t generate enough jobs and none of the 32 citizens would qualify for green cards through the program. Now, these individuals are facing deportation and Mr. McAuliffe and Mr. Rodham seemed to have profited from their false promises.
Arguing that Greentech is a politically connected company, given Mr. Rodham’s involvement, the lawsuit filed by the Chinese citizens states: “Defendants milked these connections in marketing materials. Defendants exploited those relationships to assure investors of both the success of the company and their ability to obtain U.S. Citizenship and Immigration Services (“USCIS”) approval of the visa applications.”
Crystal Carson, a spokeswoman for Mr. McAuliffe, rejected the allegations and claimed it was nothing more than a political stunt by those on the Right: “We strongly reject this baseless suit which has no merit whatsoever. The claims, which regurgitate old political attacks regarding a company that Governor McAuliffe left five years ago, were brought by a lawyer with conservative ties. We are confident it will be dismissed.”
Mr. McAuliffe used the formation of Greentech as leverage to kickstart his run for Governor of Virginia. Almost immediately after the factory opened for production in 2012, it ran into significant problems. Delayed production and a peak hiring of 143 employees — significantly fewer than the 350 that were promised by advocates like Mr. McAuliffe and Mr. Rodham — caused the company to fail.
Also suspicious was that shortly after launching the company, Mr. McAuliffe stepped down as chairman and sold all of his shares. Two years later, he was sworn in as Governor of Virginia while Greentech was still struggling. It closed down January of this year.
A lawsuit contends that two prominent Democrats scammed 32 Chinese nationals out of a significant amount of money. Are these Democrats guilty?
In addition to this latest scandal, Mr. McAuliffe stated that he was under investigation by the FBI last year for various business dealings with foreign nationals. Whether Greentech was a part of that investigation is unknown. It is also unknown whether the investigations into his dealings are still ongoing.
The fate of these 32 Chinse citizens is unknown, but given the failure of their investments through Greentech, it’s likely that they will be deported. It remains to be seen whether they will see justice for the misrepresentation by Mr. Rodham and Mr. McAuliffe that cost them more than $17 million.