A. Eddy Zai
When the financial crisis hit four years ago, it threatened an ambitious mixed-use waterfront development in Cleveland’s moribund Flats area. Developer Scott Wolstein could no longer find credit.
Then, millions flowed in from an unexpected source: a group of foreign investors using an obscure immigration program called EB-5. The government gives visas to investors who invest in the US economy and create US jobs.
EB-5 was the main incentive for the Cleveland International Fund, which sought foreign investment to revitalize Cleveland. At the helm was A. Eddy Zai, an immigrant himself, who had success convincing others to invest in the Midwest.
Now, Zai is in big trouble. Last week, a federal indictment charged Zai with 34 counts related to bank fraud, according to the Plain Dealer. He’s accused of bilking a credit union of nearly $17 million in bad loans, and contributing to its collapse. Continue reading