HGT Law Obtains Order Appointing Receiver Over Legend International Investment LP

On December 9, 2024, HGT Law obtained an order from the Superior Court of the State of California, County of Riverside, appointing a receiver to protect the interests of Legend International Investment LP (“Legend LP”), a limited partnership formed to received foreign investor money under the EB-5 immigrant investor program and to develop a commercial business center and create jobs.

HGT Law previously commenced a derivative lawsuit on behalf of Legend LP alleging that its general partners, Defendants American Everglow Regional Center and Legend Investment Management, LLC (the “General Partners”), acting through their managing members Defendants Hua Guo and Steven Zhi Qin, caused, and continue to cause, Legend LP to unlawfully transfer millions of dollars to themselves and certain affiliates. Legend LP has never made any distribution to its limited partners, and has nearly no operating capital. The General Partners have not provided Legend LP’s limited partners with any updates on Legend LP’s operations for over eight years, all the while allegedly siphoning Legend LP’s funds.

Accordingly, HGT Law moved for the appointment of a receiver to protect the interests of Legend LP’s limited partners, to assume control of Legend LP, and to manage Legend LP’s finances. In granting the motion, the court found that there was sufficient evidence showing facts warranting the appointment of a receiver pursuant to California Code Civ. Proc. Sections 564(b)(1) and 564(b)(9).

A copy of the Superior Court’s order can be found here. A copy of the derivative action complaint can be found here.

For more information about the HGT Law’s derivative lawsuits practice and EB-5 investors practice, please contact us at (646) 453-7288 or via email at info@hgtlaw.com.