22 May Emilio Francisco & PDC Capital Group, LLC— Investment Fraud Scheme
Emilio Francisco & PDC Capital Group, LLC Allegedly Orchestrated a $9.5 Million Investment Fraud Scheme
Emilio Francisco & PDC Capital Group, LLC, allegedly operated an investment scheme which purportedly defrauded up to 131 investors in 19 different offerings out of at least $9.5 million, according to an SEC Complaint presently under review by attorneys Joe Peiffer and James Booker.
Peiffer Wolf securities practice lawyers are investigating investment recovery options on behalf of investors in issues related to Emilio Francisco & PDC Capital Group’s alleged fraudulent scheme, and are preparing to help Chinese investors, on a contingency fee basis.
Investors who believe they may have lost money in activity related to Emilio Francisco & PDC Capital Group’s alleged fraudulent scheme are encouraged to contact attorneys Joe Peiffer or James Booker with any useful information or for a free, no obligation discussion about their options.
Emilio Francisco & PDC Capital Group, LLC, beginning in January 2013 and continuing through at least September 2016, allegedly made offerings in assisted living facilities, Caffe Primo restaurants, and a packaging facility, for the most part to Chinese investors whom purportedly qualified for the “EB-5 Immigrant Investor Program” which has been developed by the U.S. Citizenship and Immigration Service (USCIS), according to the aforementioned Complaint.
Francisco and PDC Capital went on to allegedly raise roughly $72.05 million from the aforementioned 131 investors which consisted of approximately $65.5 million in capital contributions to buy units in limited partnerships, and $6.55 million in so-called “administration fees” in order to pay expenses of the limited partnerships until the aforementioned projects were built, the Complaint states.
Francisco and PDC Capital also allegedly distributed representations that an investor’s total $500,000 capital contribution be purportedly implemented to develop a specific project, and that only the administration fees would be available to pay expenses of the limited partnership until said project was completed, the Complaint reports.
Next, PDC Capital then allegedly took in approximately $19.2 million of investors’ monies which was purportedly $12.65 million more than the full administration fees paid by investors, the Complaint states.
PDC Capital and Francisco, from the aforementioned $12.65 million of diverted investor funds, allegedly produced misappropriations of up to $9.5 million of investors’ capital to purportedly finance his luxurious lifestyle including the purchase and maintenance of a yacht, and to support his businesses, the Complaint notes.
Francisco and PDC Capital also allegedly generated misrepresentations to investors that their financial contributions would be put to use for the specified purposes which were unfolded in the offering materials, the Complaint states.
Emilio Francisco & PDC Capital Group, LLC Allegedly Mixed Funds from Separate Projects which Purportedly Contradicted Representations in the Offering Materials which Showed the Specific Project They Were Investing Funds In; Francisco Allegedly Knew that His Behavior would Violate Federal Regulations and Purportedly Jeopardize Visas for Investors
Emilio Francisco and PDC Capital allegedly mixed funds from various projects which contradicted representations in the offering materials that investors’ funds would purportedly be implemented for the stated project in which they were investing, according to the aforementioned SEC Complaint currently under review by attorneys Joe Peiffer and James Booker.
Up to $1.5 million of the investors’ funds were allegedly put into escrow for two offerings which were not given to the bank accounts of the limited partnerships that were to receive the funds, the Complaint reports.
Francisco, PDC Capital Group, and Caffe Primo International, Inc., another entity under the control of Francisco as CEO and part-owner, allegedly orchestrated their purported fraud through offerings for the defendant limited partnerships, the Complaint reports.
Emilio Francisco, at all relevant times, allegedly was in control of the bank accounts, directly or indirectly, for all of the Defendants, and also purportedly was in control and approved the terms of the various offerings, and made personal benefits from the purported misuse and misappropriation of funds, the Complaint states.
What is more, the aforementioned Defendants’ conduct was allegedly ongoing, and by engaging in said conduct, the Defendants allegedly violated, and continue to violate, the antifraud provisions of the Securities Act, the Complaint reports.
Finally, it should be noted that Francisco is the CEO and Chairman of defendants PDC Capital Group, LLC and Caffe Primo International, Inc. and also controls and serves as the CEO of other entities involving the alleged fraudulent scheme, such as PDC Partners Management, Inc. which managed assisted living projects and FDC Partners Management, Inc. and which also allegedly managed assisted living projects such as Summerplace Management, LLC which is the general partner of several of the assisted living projects, the Complaint reports.
Securities Lawyers Investigating
The Peiffer Wolf securities lawyers often represent investors who lose money as a result of alleged investment fraud and are currently investigating Emilio Francisco & PDC Capital Group’s alleged fraudulent scheme. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Emilio Francisco & PDC Capital Group’s alleged fraudulent scheme may contact the securities lawyers at Peiffer Wolf, Joe Peiffer or James Booker, for a free no-obligation evaluation of their recovery options, at 216-589-9280 or via e-mail at [email protected] or [email protected].
