SEC Charges EB-5 Operator with Securities Fraud

The Securities and Exchange Commission (SEC) has filed charges against a Utah resident, Christofer Shurian, and an entity under his control, Utah Regional Investment Fund, LLC (“URIF”), for perpetrating a fraudulent scheme. This scheme involved diverting millions of dollars of investor funds for personal use and to pay finder’s fees instead of fulfilling the promised investment purpose, which was to create jobs in the United States through the EB-5 Immigrant Investor Program.

According to the SEC’s allegations, spanning from 2014 through 2020, Christofer Shurian and URIF conducted an EB-5 offering that raised $18 million from Chinese investors. The intended purpose of this capital was to finance the construction of a resort in Garden City, Utah. However, the SEC claims that Shurian and URIF misappropriated approximately $5 million of these funds for unauthorized uses. These improper uses included acquiring Shurian’s personal residence and a vacation home, settling personal credit card bills, purchasing vehicles, and paying finder’s fees to an entity that had recruited investors for the EB-5 program.

The SEC’s complaint, filed in the United States District Court for the District of Utah, charges both Shurian and URIF with violating antifraud provisions under Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. Additionally, the SEC has identified CCS of Utah, Inc. as a relief defendant. In response to these charges, the SEC seeks various remedies, including permanent injunctions, conduct-based injunctions, disgorgement, prejudgment interest, civil penalties, and an officer-and-director bar specifically for Christofer Shurian.

If you suspect your advisor mismanaged your money or committed negligence or fraud, call Sonn Law Group for a free consultation at 833-912-3000 today.