The allegations revolved around a complex financial situation in which CMB\u2019s principals made extraordinary efforts to enhance and protect the collateral by preserving the ongoing operations of its borrower and affiliated companies<\/em><\/p>\n\n\n\nLOS ANGELES \u2013 April \u00ad\u00ad__, 2025 \u2013 CMB Export LLC, a global leader in helping foreign nationals achieve permanent residency through the EB-5 immigrant investor program, announced its landmark victory in a civil trial. The three-week trial, presided over in Los Angeles, culminated in a jury verdict delivered on November 20, 2024. The jury ruled in favor of CMB Export and its principals in a unanimous verdict that was memorialized in a Judgement in favor of CMB Export that was filed by the court on April 2, 2025.<\/p>\n\n\n\n
The allegations revolved around a complex financial situation in which CMB\u2019s principals made extraordinary efforts to preserve the ongoing operations of its borrower and affiliated companies. When the borrower and its parent company were faced with significant financial challenges, the principals of CMB Export personally infused over $15 million into the borrower\u2019s business to sustain operations in an effort to enhance and protect the collateral securing its loan.<\/p>\n\n\n\n
At issue in the case were claims from a minority limited partner group suggesting that CMB Export (the general partner) and its principals acted against the interests of the limited partnership and its stakeholders. Specifically, the plaintiffs alleged they were deprived of the opportunity to independently invest funds when CMB Export\u2019s principals contributed over $15 million of their own money to stabilize and maintain operations of the borrower\u2019s company. This effort was undertaken during a critical period to ensure the borrower\u2019s health, sustain American job creation, and increase the overall value of its assets that serves as collateral for the limited partnership\u2019s loan to position the borrower and its parent company for a future sale and repayment to its creditors.<\/p>\n\n\n\n
The defense demonstrated that the principals\u2019 actions not only saved the borrower\u2019s company but also preserved the integrity of the limited partnership. By assigning the full benefits of their $15 million loans to the limited partnership, the principals ensured that all limited partners\u2014not a select few\u2014benefited from their efforts. The jury validated this position, recognizing that the principals acted in the best interest of the limited partnership and all its investors.<\/p>\n\n\n\n
\"The jury\u2019s verdict reaffirms what we have always stood for\u2014acting transparently and with integrity to benefit every member of our limited partnership,\u201d said Pat Hogan, CEO, CMB Regional Centers \u201cThe decision to personally step in and provide financial support to stabilize the borrower\u2019s company was not made lightly. This victory highlights our unwavering commitment to both CMB's mission and the trust of our valued investors.\u201d<\/p>\n\n\n\n
CMB Export\u2019s strategic decisions allowed the borrower\u2019s company and its parent company, to continue operations successfully, generating the required economic activity to meet the EB-5 program\u2019s mandate of creating at least ten new American jobs per investor. This verdict underscores CMB's unwavering commitment to maintaining fairness and integrity at every level of our organization.<\/p>\n\n\n\n
The legal team at Lewis Brisbois Bisgaard & Smith LLP represented CMB Export in this case, demonstrating their expertise in navigating complex civil litigation. Their strategic approach and in-depth understanding of fiduciary law played a critical role in securing the favorable verdict.<\/p>\n\n\n\n
Notably, CMB Export and its affiliates continue to deliver on the primary goal of the EB-5 program\u2014helping investor\u2019s secure permanent residency (green cards) in the United States. Every limited partner within the limited partnership central to this case has successfully achieved this outcome.<\/p>\n\n\n\n
Looking ahead, CMB Export remains committed to pursuing the recovery of the limited partnership investments as part of its ongoing responsibilities to its stakeholders. CMB will continue to advocate for the success of its limited partners while upholding the principles of integrity and transparency that have defined its operations since its inception, more than 28 years ago.<\/p>\n","_et_gb_content_width":"","footnotes":""},"categories":[6,1],"tags":[],"yoast_head":"\n
Noreen Hogan Elected Vice President of IIUSA, The Leading EB-5 Industry Trade Group\u00a0\u00a0 - CMB Regional Centers<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n