WASHINGTON: A 30-year-old Indian American businessmen has been indicted on charges for exploiting a U.S. visa program to fraudulently raise approximately $160 million from nearly 290 Chinese nationals who invested in the project while seeking U.S. residency.

Chicago-based Anshoo Sethi, who purported to be building a $912 million hotel and convention center complex near O'Hare International Airport, was charged yesterday with eight counts of wire fraud and two counts of making false statements in a 10-count indictment returned by a federal grand jury.

The indictment filed before a Chicago-court seeks forfeiture of at least $11 million in administrative fees that Sethi allegedly collected from Chinese investors and expended as part of the fraud scheme.

Sethi, the founder and a managing member of A Chicago Convention Center LLC, misappropriated at least $320,000 of the fees to purchase luxury goods for himself, his family, and friends, and for an unrelated civil lawsuit settlement to fund a cosmetic surgery business, and for other personal expenses, according to the indictment.

The U.S. Securities and Exchange Commission (SEC) sued Sethi over the purported project in early 2013 and the case was settled earlier this year.

Approximately $147 million, which had been escrowed by Sethi and frozen by the SEC, was returned to Chinese investors.

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Source: PTI