PIERRE | A federal judge has declined to dismiss a lawsuit filed against the architect of South Dakota's EB-5 investment-for-visa program after finding potential public policy and state law violations.
The Argus Leader reports that former program administrator Joop Bollen had sought to be dismissed from the lawsuit brought by Tentexkota LLC and eight of its members. The group borrowed $32.5 million from EB-5 investors and rehabilitated the historic Homestake slime plant into the Deadwood Mountain Grand resort.
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But Tentexkota defaulted, and a financing company controlled by Bollen sued to collect the money from Tentexkota and its members, who had guaranteed the loans. Tentexkota members countersued, arguing that the guarantees should be voided because they violate federal law.
Judge Charles Kornmann wrote in his order that there are genuine issues of material fact about the guarantees' validity.