After the launch of the Chicago Conference Center project, the U.S. Project Management Department of the WorldWay Immigration Group conducted due diligence on the project within just one month. Two senior project analysts conducted a professional review of the project issuance documents provided by the project party, while the U.S. Project Management Department commissioned a senior EB-5 expert to conduct on-site research in Chicago, discovering that the project materials provided by the project party were untrustworthy. Some important official documents were still not provided despite repeated requests. The WorldWay Group identified the following five major concerns regarding the Chicago Conference Center project:
1. The claimed valuation of the investment by the project party is severely inaccurate. Investigations revealed that the project party claimed to contribute 3.2 acres of land (in reality, only 2.8 acres), with a shocking valuation of $177 million, yet they failed to provide the promised formal appraisal report.
2. The claimed investment has not been transferred to the project company, Chicago Conference Center (ACCC). Investigations revealed that the land claimed to be used for investment actually belongs to another company established by the controlling person, Mr. Anshoo R. Sethi, and his father. Mr. Anshoo R. Sethi had promised to transfer the land ownership to the project company as soon as possible but later refused to proceed with the transfer procedures, citing his father's disagreement.
3. The project party cannot provide official documentation to support its claims of government funding. Investigations revealed that the project party claimed that the project had government investment participation, accounting for more than 50% of the total project investment, yet they have consistently failed to provide official documents to substantiate this.
4. The experience and capability of the controlling person, Mr. Anshoo R. Sethi, and his father in operating hotels are questionable. Investigations revealed that Mr. Anshoo R. Sethi and his father own a low-tier small hotel on the land claimed for investment, which is poorly managed. This is far from their claimed experience and strength, making it hard to believe they possess sufficient experience and capability to construct and operate the so-called "world's first zero-carbon platinum LEED certified" hotel conference center, which allegedly includes conference space and five high-end hotels with a total of 995 rooms.
5. The construction budget is inflated, increasing employment risks. Investigations revealed that the total investment budget for the Chicago Conference Center, including land costs, is $913 million, with each room costing as much as $917,000. Making such a dense capital investment in such a small space results in the highest average construction cost per square foot among all EB-5 construction projects. Since construction costs are related to employment calculations, the inflated construction budget inevitably leads to inaccurate employment calculations, and the claimed employment target of 1.73 times lacks a credible basis.
The five major concerns raised by the U.S. Project Management Department of the WorldWay Immigration Group back in October 2011 have unfortunately proven to be accurate. On February 6, 2013, the U.S. Securities and Exchange Commission detailed these concerns and other issues in a 26-page indictment, which can be viewed in the original report on the U.S. SEC website.