Home Paradise Investment Center
2014 - 2017
Edward Chen, and his wife Jean, owned and operated GH Investment LP and Golden Galaxy LP, two regional centers designed to attract investors through the EB-5 Program. The centers solicited investors to fund (1) the development, renovation and operation of an interior design center in Ontario, California, and (2) a five-floor, 80-unit condominium project in Los Angeles.
Between June 2014 and September 2017, the Chens raised at least $8.5 million from 19 Chinese investors through the sale of limited partnership interests in GH Investment for the interior design center project. Another $13 million was raised from November 2015 through April 2017 under Golden Galaxy. Each investor wired a $500,000 initial contribution and an administrative fee of $45,000 or $50,000, depending on the regional center.
Unfortunately, the Chens gave both investors and the USCIS a doctored version of the lease for their design center and said that the leased space was five times larger than its actual size. Despite their claims that over 330 jobs were created as a result of the projects, the SEC reported that the design center was “a less-than 25,000 square foot undecorated, half-empty warehouse with some scattered random floor samples and one apparent employee, a receptionist.”
The Chens misappropriated or misused at least $11.5 million of investors’ funds. Jean Chen withdrew over $5 million and wrote cashier’s checks to herself, and some of the money was used to purchase foreclosed houses in southern California. Ultimately, none of the 45 Chinese investors received their green cards as promised because the projects did not create the required number of jobs.