EB-5 has become code for one of South Dakota's most complex political scandals. EB-5 is the program by which foreign investors buy a chance at getting a visa by investing a half million dollars to create jobs.
EB-5 is alive now in federal court, with foreign investors suing to be repaid a loan of $32.5 million.
The money came from a limited partnership called SDIF, which brought in 65 foreign investors putting up $500,000 each.
A limited liability company, or LLC, called Tentexkota, borrowed the money to build the Deadwood Mountain Grand casino and event center.
That case is being handled by the U.S. District Court in Aberdeen.
While contemplating the case, Federal Judge Charles Kornmann came across a question that needs to be resolved by the South Dakota Supreme Court: whether the deal was legally binding under state law.
Justices heard oral arguments on Tuesday, April 30.
SDPB's Victoria Wicks has this report.
To read Judge Kornmann's order, click here:
https://www.leagle.com/decision/infdco20170907923
To access information presented to the SD Supreme Court, click on the link below and find the case second from the bottom. Click on the icons to read briefs or listen to oral arguments.
