Bloggings On EB-5

by Staff

State of Vermont Retracts Approval from Dream Life Project

According to Brent Raymond, Vermont Regional Center director, a memorandum of understanding in September 2012 was canceled because the parameters of the American Dream Fund’s Dreamlife project had changed from those initially approved. Since then, Dreamlife spokesman Phil Mooney took the role of head of the consortium, in place of Richard Parenteau. Mooney’s excellent background and record and various reassurances convinced Vermont to be comfortable with reinstating the project. Thus, a new memorandum of understanding in November 2012 was born of the rebuttal of this first cancellation. However, this November memorandum of understanding has also been cancelled.

Lawrence Miller, the Secretary of Commerce, has pointed out various problems with the project and materials of misrepresentation. The project proposed the building of 10 homes for assisted living in Vermont. Under the plan, the project was going to use $160 million in EB-5 investment and create over 3,000 jobs. The only other EB-5 project in Vermont bigger than this would have been Jay Peak. *

According to Miller, the number of issues and questions the Vermont Regional Center had about the American Dream Fund’s project kept increasing. For example, American Dream Fund incorrectly identified USMS Team, LLC., limited liability corporation located in Florida, as the legal counsel for the project. In reality, USMS does not have a license to practice law in the state of Florida. The fact that the American Dream Fund represented to Vermont that USMS Team, LLC. was a law firm that was going to ensure that the Dreamlife project was in compliance with U.S. law regarding the EB-5 Visa Program is a breach of the memorandum of understanding.

Additionally, American Dream Fund listed three professionals and claimed that they were a part of the Dream Life Project Team in marketing materials posted on the project’s website. These trade professionals included Carl Childs, a structural engineer, Thomas Leytham, an architect, and Edward Pearson, from Pearson & Associates. According to Miller, the three professionals were not aware that American Dream Fund had listed them as being on the project. Miller also cited that, while aboard, Mooney directed potential investors to the project’s website where these misrepresentations existed.

Thus, on March 27th, the memorandum of understanding from November, between the American Dream Fund I, LLC., the Agency of Commerce and Community Development, was canceled by Miller. Since then, Mooney has claimed that Dreamlife was completely transparent and open about the project. According to Mooney, he repeatedly notified Raymond that USMS was not a law firm. He also claims that he has a copy of a letter between Leytham and Miller, dated March 29th, explaining that Leytham did know his name was on the project’s website. He also says he has a copy of an email from Childs who was not against having his name in the website materials. Supposedly, Childs agreed to be named in the project but did not guarantee that he would have time to work on the project once it started. *

Dreamlife is the first EB-5 project to not move forward in the state of Vermont.

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