Allegations of fraud involving a popular U.S. immigrant investor program have surfaced in a new federal lawsuit, with two foreign nationals claiming they lost more than half a million dollars after being promised both permanent residency and ownership of residential property in Texas.
The complaint was filed by Miaomiao Pan and Youqing Wang on March 20, 2026, in the United States District Court for the Southern District of Texas against American Citigroup Property Management, Inc., AC Prosperity LP, American Citihome Group Inc., USLiving Regional Center LLC, American Citigroup Construction Inc., American Citigroup Real Estate Inc., ACRC Property Management LLC, Golden Donau Prosperity LLC, Venetian Prosperity LLC, Yue Yin (also known as Bill Yin), and Weijia Xu (also known as Jennifer Xu).
According to the filing, Pan and Wang are citizens and residents of the People’s Republic of China who sought to participate in the EB-5 Immigrant Investor Program administered by United States Citizenship and Immigration Services. The program allows foreign investors to obtain conditional permanent residency by investing in approved commercial enterprises that create jobs. Plaintiffs allege that defendants—including several companies registered in Texas and Florida—used fraudulent marketing campaigns to solicit their investment under false pretenses.
The lawsuit states that defendants promoted an opportunity to invest $500,000 into a planned residential development project located within a Targeted Employment Area in Houston. Plaintiffs claim they were told this investment would be “risk-free,” secured by the property itself, and would result in both U.S. green cards and home ownership. An additional $50,000 administrative fee was also required. “Plaintiffs were specifically promised and assured by Xu and Yin that the investment was ‘risk-free’ because it would be secured by the Property,” according to the complaint.
Plaintiffs assert that these representations were material misstatements designed to induce their participation. They state they transferred $550,000 in March 2016 based on assurances from defendants’ agents regarding compliance with EB-5 requirements. However, plaintiffs allege they later discovered that such guarantees violated core conditions of the EB-5 program—which requires capital at risk—and that no property was ever delivered nor was their immigration petition successful.
The suit outlines multiple causes of action including violations of Section 10b of the Securities Exchange Act and Rule 10b-5 for manipulative or deceptive practices; common law fraud; fraudulent inducement; conversion; civil conspiracy; aiding and abetting fraud; breach of contract; money had and received; promissory estoppel; and unjust enrichment. The plaintiffs argue that “Defendants marketed and advertised the Project by falsely guaranteeing the risk-free nature of the investment made by Plaintiffs,” which led them to invest under false pretenses.
In addition to actual damages totaling $555,500—the amount invested—plaintiffs seek exemplary damages exceeding $1 million for alleged fraud as well as economic losses tied to lost business opportunities. They also request disgorgement from all defendants for any benefits received through what they describe as illegal conduct.
Further relief sought includes rescission of all contracts entered into between plaintiffs and any defendant related to the transaction at issue. Plaintiffs ask for recovery of reasonable attorney’s fees arising from what they describe as deceptive offerings under both state law (Texas Business & Commerce Code §27.01) and federal securities laws.
A jury trial has been demanded on all claims presented in this matter.
Attorneys representing Pan and Wang are Renjian “Ethan” Zhang (State Bar No. 24124466) and Henna Ghafoor (State Bar No. 24079867) from Mosaic Paradigm Law Group PC based in Houston. The case is identified as Case No. 4:26-cv-2254.
Source: 426cv02254_Miaomiao_Pan_v_American_Citigrouo_Complaint_Southern_District_of_Texas.pdf