Following a multi-day bench trial in Riverside County Superior Court, the Honorable Daniel A. Ottolia entered judgment in favor of LTL’s client in a derivative action brought on behalf of an EB-5 limited partnership. The case, Tang v. American Everglow Regional Center, LLC, et al. (Case No. CVRI2104400), involved claims that the partnership’s general partners and their affiliates systematically diverted investor funds through self-dealing contracts, unauthorized payments, and a fraudulent land contribution worth a fraction of its represented value. The court found in favor of Plaintiff on all causes of action—breach of contract, breach of fiduciary duty, aiding and abetting, and unjust enrichment—awarding $10,326,636 in compensatory damages with joint and several liability among the primary defendants. The court also awarded treble damages under California Penal Code section 496 against a defaulted defendant and ordered restitution from each entity and individual that received diverted funds. Plaintiff is additionally entitled to prejudgment interest and reasonable attorneys’ fees.
The case was tried by LTL partner Caleb Liang, working alongside co-counsel Hung Ta and Alexander Hu of HGT Law. The judgment followed more than four years of litigation and underscores that fiduciaries who exploit their positions of trust—including in the EB-5 context—will be held fully accountable under California law.