Skip to main content

Kunpeng, consultancy promoting AY to immigrant investors in China, among firms willing to deceive regulators, according to newspaper investigation

There's new evidence that consultants helping Chinese millionaires immigrate, as in the program involving the "Brooklyn Arena and Infrastructure Project," are skating toward fraud.

In this case, the evidence does not involve the EB-5 program, in which investors park $500,000 for a purportedly job-creating project in exchange for green cards for themselves and their family, but rather a similar Canadian program.

Kunpeng International, a consultant prominent in promoting the Brooklyn project as an associate of the New York City Regional Center (NYCRC), an investment pool working with Forest City Ratner, has been identified as one willing to deceive Canadian regulators.

(Kunpeng's head is at right in the photo with the Empire State Development Corporation's Peter Davidson, who provided a certificate during a roadshow in China last October. That proclamation, as I wrote, elides the difference between the Brooklyn Arena and Infrastructure Project before the potential investors--purportedly the arena, infrastructure, and railyard--and the Atlantic Yards project as a whole, which would produce many more jobs and potential benefits.)

Helping a fictitious applicant

In a 4/22/11 article headlined How China’s ‘crooked consultants’ help the rich enter Canada, the Globe and Mail reports that a fictitious potential immigrant created for the purposes of the article--who has the required minimum $1.6 million CAD in assets but not the required documentation providing the wealth is legitimate--was offered help in sugarcoating his past by 18 of the 22 China-based immigration consultants approached.

Of the 22, 12 said that even a criminal record--jail time for stabbing someone in a fight--could be overcome:
If the relative were to persuade – bribe, if necessary – someone at his local police station to issue such a certificate, explained an agent at Kunpeng International, a Beijing-based firm, Canadian officials “can’t come to China to check the archives” in person.
John Ryan, chief executive officer of the Canadian Society of Immigration Consultants, a former consultant in China, told the newspaper that business ethics in China are flexible:
“In Chinese culture, they feel that, in dealing with governments, they need an edge. They don’t really understand that, in our Canadian system, they can deal openly and honestly with the government and be dealt with fairly.”
Previous coverage

As described in a 12/10/10 installment in my Anatomy of a Shady Deal series, China presents a valuable, unique opportunity, given the confluence of basketball fever, plentiful new money, the desire to get children educated (and other opportunities) in the United States, a language barrier, limited watchdog reporting on this issue, little emphasis on transparency, variable amounts of business sophistication, and flexible business ethics.

The lead-in to a video, webcast by the Kunpeng consultancy, promotes the project with upbeat, gauzy images.



Pushing the envelope

As I reported 10/4/10, the NYCRC's Gregg Hayden, when faced with a question about why exactly green card-seeking Chinese investors were needed for a project that included deep-pocketed Russian billionaire Mikhail Prokhorov, simply evaded the question.

However, as I reported 10/7/10, Chinese investors reading the transcript were given an additional dose of candor, words not in Hayden's mouth but which elaborate on the logic and spirit of his statement:
The costs of using investment funds are relatively lower than the costs of bank loans. Although the NBA project funds are sufficient, business is business, and we are in pursuit of profit maximization.
(Emphasis added)

This blatant admission of the developer's true goals gives a lie to the official claim that the investment would create or save jobs, and provides more evidence that the plan violates the spirit, and perhaps the letter, of the EB-5 visa program.

The Q&A appeared on the blog (Google Translate version) of Hu Weihang, who heads Kunpeng. A statement like "business is business," while it may sound like a violation of the spirit of American immigration law, to a Chinese audience conveys that it's a serious project, according to the translator I consulted.

A law firm's proclamation

As I wrote 12/15/10, the Kunpeng firm even received a proclamation from the Ithaca, NY-based law firm Miller Mayer, which works for the NYCRC, its lawyers filing papers with federal authorities and accompanying the NYCRC on tour, and is recommended by the NYCRC to potential investors.

(Graphic from blog of Kunpeng's Hu Weihang.)

It states:
Miller Mayer, LLP
Of Ithaca, New York, United States of America
Proudly Recognizes

Kunpeng International

As a First-Order Agency in Support of Our Mission To Provide Chinese Investors with First-Order Legal Service. In furtherance of our mutual goals and desires, we honor your participation in these efforts.

Honor and Recognition Conferred This Day,
October 11, 2010 by Miller Mayer, LLP
Attorneys at Law
[signed by firm name partners]
It's not clear whether "First-Order Agency" and "First-Order Legal Service" have any formal definition. Presumably such phrases aim to impress in a country where ceremony is valued.

Comments

Popular posts from this blog

Barclays Center/Levy Restaurants hit with suit charging discrimination on disability, race; supervisors said to use vicious slurs, pursue retaliation

The Daily News has an article today, Barclays Center hit with $5M suit claiming discrimination against disabled, while the New York Post headlined its article Barclays Center sued over taunting disabled employees.

While that's part of the lawsuit, more prominent are claims of racial discrimination and retaliation, with black employees claiming repeated abuse by white supervisors, preferential treatment toward Hispanic colleagues, and retaliation in response to complaints.

Two individual supervisors, for example, are charged with  referring to black employees as “black motherfucker,” “dumb black bitch,” “black monkey,” “piece of shit” and “nigger.”

Two have referred to an employee blind in one eye as “cyclops,” and “the one-eyed guy,” and an employee with a nose disorder as “the nose guy.”

There's been no official response yet though arena spokesman Barry Baum told the Daily News they, but take “allegations of this kind very seriously” and have "a zero tolerance policy for…

Behind the "empty railyards": 40 years of ATURA, Baruch's plan, and the city's diffidence

To supporters of Forest City Ratner's Atlantic Yards project, it's a long-awaited plan for long-overlooked land. "The Atlantic Yards area has been available for any developer in America for over 100 years,” declared Borough President Marty Markowitz at a 5/26/05 City Council hearing.

Charles Gargano, chairman of the Empire State Development Corporation, mused on 11/15/05 to WNYC's Brian Lehrer, “Isn’t it interesting that these railyards have sat for decades and decades and decades, and no one has done a thing about them.” Forest City Ratner spokesman Joe DePlasco, in a 12/19/04 New York Times article ("In a War of Words, One Has the Power to Wound") described the railyards as "an empty scar dividing the community."

But why exactly has the Metropolitan Transportation Authority’s Vanderbilt Yard never been developed? Do public officials have some responsibility?

At a hearing yesterday of the Brooklyn Borough Board Atlantic Yards Committee, Kate Suisma…

No, security guards can't ban photos. Questions remain about visibility of ID/sticker system.

The bi-monthly Atlantic Yards/Pacific Park Community Update meeting June 14, held at 55 Hanson Place, addressed multiple issues, including delays in the project, a new detente with project neighbors,concerns about traffic congestion, upcoming sewer work and demolitions, and an explanation of how high winds caused debris to fly off the under-construction 38 Sixth Avenue building. I'll have more coverage.
Security issues came up several times at the meeting.
Wayne Bailey, a resident who regularly takes photos and videos (that I often use) of construction/operations issues that impact residents, asked representatives of Tishman Construction if the security guard at the sites they're building works for them.
After Tishman Senior VP Eric Reid said yes, Bailey asked why a guard told him not to shoot video of the site, even though he was on a public street.

"I will address it with principals for that security firm," Reid said.
Forest City Ratner executive Ashley Cotton, the …

Atlantic Yards/Pacific Park graphic: what's built/what might be coming (post-dated pinned post)

This graphic, posted in November 2017, is post-dated to stay at the top of the blog. It will be updated as announced configurations change and buildings launch. Note the unbuilt B1 and the proposed shift in bulk to the unbuilt Site 5.

The August 2014 tentative configurations proposed by developer Greenland Forest City Partners will change. The project is already well behind that tentative timetable.

The previous graphic, from August 2017 (without the ghost B1)

Barclays Center event June 11 to protest plans to expand Israeli draft; questions about logistics

At right is a photo of a poster spotted in Hasidic Williamsburg right. Clearly there's an event scheduled at the Barclays Center aimed at the Haredi Jewish community (strict Orthodox Jews who reject secular culture), but the lack of English text makes it cryptic.

The website Matzav.com explains, Protest Against Israeli Draft of Bnei Yeshiva Rescheduled for Barclays Center:
A large asifa to protest the drafting of bnei yeshiva in Eretz Yisroel into the Israeli army that had been set to take place this month will instead be held on Sunday, 17 Sivan/June 11, at the Barclays Center in Downtown Brooklyn, NY. So attendees at a big gathering will protest an apparent change of policy that will make it much more difficult for traditional Orthodox Jewish students--both Hasidic (who follow a rebbe) and non-Hasidic (who don't)--to get deferments from the draft. Comments on the Yeshiva World website explain some of the debate.

The logistical questions

What's unclear is how large the ev…

Atlanta's Atlantic Yards moves ahead

First mentioned in April, the Atlantic Yards project in Atlanta is moving ahead--and has the potential to nudge Atlantic Yards in Brooklyn further down in Google searches.

According to a 5/30/17 press release, Hines and Invesco Real Estate Announce T3 West Midtown and Atlantic Yards:
Hines, the international real estate firm, and Invesco Real Estate, a global real estate investment manager, today announced a joint venture on behalf of one of Invesco Real Estate’s institutional clients to develop two progressive office projects in Atlanta totalling 700,000 square feet. T3 West Midtown will be a 200,000-square-foot heavy timber office development and Atlantic Yards will consist of 500,000 square feet of progressive office space in two buildings. Both projects are located on sites within Atlantic Station in the flourishing Midtown submarket.
Hines will work with Hartshorne Plunkard Architecture (HPA) as the design architect for both T3 West Midtown and Atlantic Yards. DLR Group will be t…

Not quite the pattern: Greenland selling development sites, not completed condos

Real Estate Weekly, reporting on trends in Chinese investment in New York City, on 11/18/15 quoted Jim Costello, a senior vice president at research firm Real Capital Analytics:
“They’re typically building high-end condos, build it and sell it. Capital return is in a few years. That’s something that is ingrained in the companies that have been coming here because that’s how they’ve grown in the last 35 years. It’s always been a development game for them. So they’re just repeating their business model here,” he said. When I read that last November, I didn't think it necessarily applied to Atlantic Yards/Pacific Park, now 70% owned (outside of the Barclays Center and B2 modular apartment tower), by the Greenland Group, owned significantly by the Shanghai government.
A majority of the buildings will be rentals, some 100% market, some 100% affordable, and several--the last several built--are supposed to be 50% market/50% subsidized. (See tentative timetable below.)

Selling development …