The EB-5 program, created by the U.S. Congress in 1990, offers EB-5 visas to foreign individuals who invest $500,000 in a new enterprise located in a rural area or an area of high development. On November 4, 2019, the Commission issued a settled order (the "Order") instituting cease-and-desist proceedings against Bethany Liou ("Liou") and Golden California Regional Center, LLC (collectively, the "Respondents"). In the Order, the Commission found that, beginning in July 2016, the Respondents offered EB-5 securities in the form of limited partnership interests in the GCRC Cupertino Fund, LP (the "Cupertino Fund") and instead of providing those funds to the developer in accordance with the Cupertino Fund offering documents, Liou transferred the investor funds to accounts in Liou's name and then pledged investor funds as collateral for a line of credit. The Commission found that the Respondents violated Section 17(a)(2) of the Securities Act of 1933 and ordered them to, jointly and severally, pay disgorgement of $49,306,893 and prejudgment interest of $988,339 to the Commission (the "Distribution Fund"), pursuant to a payment plan. According to the Order, the staff of the Commission will seek to distribute collections to the Cupertino Fund investors. See the Commission's Order: Release No. 33-10725.

On December 2, 2019, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Distribution Fund

On March 20, 2020, the Commission issued an order appointing JND Legal Administration, as the Fund Administrator to oversee the administration and distribution of the Fair Fund and, set the administrator’s bond amount. See the Commission’s Order: Release No. 34-88442. In anticipation of a distribution, the Fund Administrator may reach out to investors to confirm their contact information and obtain other information that will be necessary for the distribution.

On September 2, 2020, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-89755 and the Proposed Plan.

The Plan proposes to distribute the Net Available Distribution Fund, which is comprised of the $48,340,835.64 in disgorgement and prejudgment interest collected pursuant to the Order, plus any accrued interest and earnings thereon and any additional funds collected pursuant to the Order, minus all taxes, investment fees, and fees and expenses of tax and fund administration, to investors who purchased limited partnership interests in the Cupertino Fund, and who suffered losses due to the Respondents’ conduct described in the Order. The Commission received four comments to the Plan, publicly available here.

On December 10, 2020, the Commission issued an order approving the Plan and published the Plan as approved. See the Commission’s Order: Release No. 34-90625 and the plan.

On May 10, 2021, the Commission issued an order directing the disbursement of $48,373,956.25 from the Distribution Fund to the Distribution Fund’s escrow account at The Huntington National Bank for distribution by the Fund Administrator in accordance with the Plan. See the Commission’s Order: Release No. 34-91815.

On April 7, 2022, the Commission issued an Order Authorizing the Disposition of Funds Remaining in the Distribution Fund and Any Funds Returned to the Distribution Fund in the Future, Discharging the Fund Administrator, Cancelling the Administrator’s Bond, and Terminating the Distribution Fund. See the Commission’s Order: Release No. 34-94627.