July 15, 2011 5:21 PM
Brooke Edwards
Staff Writer
VICTORVILLE • The city of Victorville has filed its lawsuit against the federal government over the termination of its EB-5 visa investor program, Mayor Ryan McEachron confirmed Friday. (Click here to view the complaint.)
All five parties in the lawsuit are in the process of being served, McEachron said, including:
• The Department of Homeland Security;
• U.S. Citizenship and Immigration Services;
• Janet Napolitano, secretary of the Department of Homeland Security;
• Alejandro Mayorkas, director of USCIS; and
• Rosemary Melville, director of the USCIS California Service Center.
Victorville is suing the agencies and their leaders for declaratory and injunctive relief, after the city’s EB-5 program became the first in the nation to be terminated.
USCIS approved the program in 2009, allowing the city to solicit foreign citizens willing to loan $500,000 for qualified projects that create at least 10 jobs. Victorville collected $7.5 million in loans from 15 investors before the program was terminated in October, with USCIS citing concerns over whether the city was creating the required number of jobs.
The City Council voted to initiate litigation over the termination on a 3-1 vote during closed session in June. Councilman Rudy Cabriales was absent and Councilwoman Angela Valles voted against the move.
Though the suit was supposed to be filed by June 24, McEachron said he got confirmation Friday that it had been filed in a Washington, D.C., court.
It cost Victorville $7,500 to prepare and file the suit, with no estimate available for how much it will cost to fight it.
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Brooke Edwards may be reached at (760) 955-5358 or at bedwards@VVDailyPress.com.
Don’t tell me, Victimville is being represented by Best, Best and Krieger (BB&K) for another litigation “money train” and what ACT commonly refers to as LEGAL SERVICES FRAUD. Suing Uncle Sam, when you can’t even keep your own house in order is useless (just an obvious attempt by the politicians to try and save some face), why didn’t the City Council sue the FBI and IRS too?
In the absence of common sense, and in the shadow of the looming City of Victimville bankruptcy and on-going federal investigation, the politicians remain in COMPLETE AND UTTER DENIAL! Hey, why don’t we just give some more taxpayer money away to pay for another frivolous lawsuit, it’s just mo’ money for the attorney$.
Wow this should get interestig. Filing suit while a criminal investingation is going on against the ones filing suit? Good luck with that one city of Victorville. More money being taken away from the tax payers.
The EB-5 program was another Buck Johns failure. According to the Daily Press “The city had formally accepted 17 loans through the program for a total of $8.5 million, though Economic Development Director Keith Metzler said only $7.5 million was transferred to Victorville before the termination. The other $1 million stayed in an escrow account managed by Johns, Metzler said.” The agreement was that $11 million had to be raised within a certain time limit and it didn’t happen. Also, the article said “temporary” green cards for the investors. If you read about the EB-5 program this is not true and the investors would bring their entire families here. They do not mention that through this program each investment is supposed to create 10 jobs for those who live here per investor. I don’t know if those rules have changed or not. Johns didn’t fulfill his time limit agreement to bring in $11 million to Victorville. McEachron needs to go. Victorville better wake up and get these guys off of the council. So far, for whatever reason Valles is the only one doing the right thing. Lets see if she voted to sue the government. Waste of money as Johns did not fulfill his $11 million within the time frame alloted. End of story. Should not have gotten involved in this deal in the first place. NO EB-5 period and stop doing business with Johns. I attended the Victorville council meeting last year when Inland Energy was asking for a time extension to collect the rest of the funds. So, it should be available on video.