On Tinian Island, a $130 million "Titanic-themed resort and casino" did worse than the ship that served as its inspiration. The Titanic, at least, made it past the blueprint stage.
Ten years after the "Tinian Ocean View Resort and Casino" was first proposed to investors, construction on Tinian, a portion of the U.S. Northern Mariana Islands in the western Pacific, just north of Guam, has not yet begun.
Before Launch, Sunk
The casino was first marketed as Tinian's economic lifeline, but the anticipated tourism and jobs never materialized.
According to Marianas Variety, a group of investors, including 23 Chinese nationals, have now launched a $13.4 million complaint in the New York State Supreme Court, claiming they were stiffed. They contend that the developer's deception, poor management, and false promises prevented the project from ever coming to fruition.
Even worse, the investors were informed that by generating jobs in the US territory of the Northern Marianas, their EB-5 payments would make them eligible for green cards. Both the promised development and the visas were never fulfilled.
Through the EB-5 program, foreign investors who invest at least $800,000 in US ventures that create at least 10 jobs can become permanent residents of the United States.
Bridge Investment Group LLC is the developer mentioned in the case. This is not the same as Bridge Investment Group Holdings Inc., a publicly traded private equity real estate company located in Utah that is unrelated to the case.
The plaintiffs, who are all members of the American Northern Marianas Economic Development Fund LLC, claim that the defendants deceived them and broke several laws in order to get investments related to the EB-5 visa program.
According to the investment pitch, a 300-room casino resort with two hotels (one "luxury," one "mid-range"), retail and dining options, convention space, spa services, and even a ferry service would be developed with nearly $12.1 million from these 23 plaintiffs (and much larger sums from other Class B investors).
The complaint claims that the fund transferred approximately $64 million into Bridge Investment Group.
However, the lawsuit claims that the loans were provided without security, documented contracts, or payback obligations. The gambling license, according to the plaintiffs, was never pledged to get funding. The complaint argues that the project was doomed from the beginning in the absence of bank finance or refinancing.
"Broken Promises"
The lawsuit also cites promotional claims made on WeChat and through the Hong Kong-based immigration consultant Canbo International Group, which purportedly promised quick visa applications and showed fictitious construction progress.
After U.S. immigration authorities sent out letters of intent to cancel previously accepted petitions, Canbo unexpectedly closed a group chat for investors in August 2023. Plaintiffs contend that this was an effort to stop inquiries when the enterprise fell apart.
The case also draws attention to shortcomings in the EB-5 job-creation model, pointing out that Tinian's reliance on imported materials and small pool of U.S. workers made it unlikely the project could ever meet the criteria of 10 employment per investment.
The lawsuit names Xianjun Meng, CEO of Bridge Investment Group LLC and managing director of the American Northern Marianas Regional Center (ANMRC), his wife Silvia Siu (also known as Xiao Bing), and two New York lawyers, Jin An and Samuel Newbold. Additionally, Meng and Siu are principals of Canbo International Group Ltd., an immigration consultant situated in Hong Kong.
The plaintiffs seek recovery of their investments along with damages, alleging breach of fiduciary duty, fraud, conversion, unjust enrichment, legal malpractice, and careless misrepresentation.
The defendants have not yet responded to the case.
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