State Reaches Settlement With SDRC for $1.5 Million
The State of South Dakota reached a settlement with the company in charge of the EB 5 immigrant investor program for the state.
South Dakota Regional Center Incorporated agreed to pay the state $1.5 million for past EB 5 related expenses.
The Governor’s chief of staff, Tony Venhuizen, says the money should also cover any further litigation.
“The $1.5 million accounts for is the expenses the state has incurred either in litigation or auditing or accounting, trying to double check to make sure problems hadn’t occurred or to track down the problems that had occurred, litigation that has sprung out of the EB-5 account to cover the legal fees,” Venhuizen says. “Then also SDRC was required to set aside funds to basically indemnify the state, or cover the cost that the state might incur for future litigation.”
The state is still involved in a lawsuit in Hughes County by investors for the former Northern Beef Packers plant in Aberdeen.
Earlier this year, Joop Bollen, plead guilty to one of five felony counts. Bollen received two years’ probation and a $2,000 fine.
Bollen founded SDRC while working for the state. He then left the state to work for the company.