Regulators ask federal judge to appoint a receiver for owner of property by Aurora Square
Sunday, October 4, 2015
According to a recent article in The Seattle Times,
Federal securities regulators have asked a federal judge to appoint a receiver over Everett-based Path America, citing “extensive misuse of investor funds,” according to a filing this week in federal court.
The Securities and Exchange Commission (SEC) said the court needs to take control of Path America to protect investors and ensure the firm’s “remaining assets are not dissipated” or lose value as a lawsuit against Path America’s CEO, Lobsang Dargey, and the firm continues.
Path America is the owner of property in the Aurora Square triangle where the abandoned Dairy Queen building stands. Path had planned a mixed use business and residential building on the site. See previous article.
But Dargey is entitled to developer fees for his EB-5 projects, his attorneys said, and he borrowed money from the investor funds to buy the commercial properties — loans Dargey is working to repay in full immediately with interest.
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1 comments:
The Seattle Times article states that a Chinese real estate company (just days before the SEC filed suit against Dargey for fraud) invested $15 million for the Shoreline Potala project. Dargey already siphoned off $7-8 million for the Shoreline real estate. It makes you wonder about the City staff and City Council - they are after sales and property taxes and are going to close Westminster Way forever just for this project.
The City has gifted property tax exemptions, promised single family rate payer supported infrastructure improvement, and gave away City assets like street vacations that close streets forever just for developers. There isn't anything that the city will NOT giveaway, including upzoning neighborhoods just for developers.
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