The Kentucky Regional Center Fund (a.k.a. “KRC Fund,” “Kentucky Regional Center,” and “Midwest EB-5 Regional Center”) is being sued by ten Chinese nationals for failing to properly handle their EB-5 investments. The KRC Fund solicited investments that were supposed to go towards the development of nine restaurants in the Cincinnati, Ohio area.

Investors allege the KRC Fund misappropriated their investments and misrepresented that the State of Ohio would guarantee their funds in the event that the projects failed even though no such policy existed.

In total, at least $5 million was siphoned off from the project to unrelated expenses. One individual by the name of Martin Angiulli is accused of diverting $700,000 to his family members by listing them as employees. He is alleged to have used hundreds of thousands of dollars to pay personal taxes and mortgages and invest in unrelated companies.

United States Citizenship and Immigration Services (“USCIS”), the federal agency that administers the EB-5 program, terminated KRC Fund Regional Center on February 13, 2015.