U.S. Securities and Exchange Commission Litigation Release No. 26412, dated September 25, 2025.
The SEC charged Lixin Azarmehr and three entities with an EB-5 offering fraud. They allegedly promised investors funds would finance skilled nursing facilities in Las Vegas but instead used $10 million as collateral for an unrelated real estate venture in Los Angeles. The defendants consented to a final judgment including disgorgement, penalties, and injunctions.
Imagine you gave money to a friend to help build a new playground in your town. Your friend promised to use the money only for the playground. Instead, your friend secretly used a big chunk of that money as a guarantee for a loan for their own unrelated business, putting your playground money at risk. The SEC stepped in and made your friend pay back the money and face penalties for breaking the rules.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
On September 24, 2025, the SEC obtained a final judgment against Lixin Azarmehr, JL Real Estate Development Corporation, Nevada Skilled Nursing Lender, LLC, and Nevada Skilled Nursing Development, LLC. The defendants were charged with an offering fraud and diverting approximately $10 million of investor funds. The defendants consented to a final judgment permanently enjoining them from violations of antifraud provisions. They are also permanently enjoined for 10 years from participating in the offer or sale of securities promoted as qualifying investments under the EB-5 Immigrant Investor Program. JL Real Estate Development Corporation was ordered to pay $500,000 in disgorgement, $200,000 in prejudgment interest, and a $500,000 civil penalty. Azarmehr was ordered to pay a $75,000 penalty.