SEATTLE, WA – Bellevue developer LOBSANG DARGEY, 43, was handed a four-year federal prison sentence today for a brazen scheme that swindled over $235 million from investors, including more than $140 million from Chinese nationals seeking permanent residency in the United States. DARGEY pleaded guilty in January 2017 to two federal felonies, admitting he’d systematically defrauded both investors and regulators.
The con centered around two real estate projects – the “Path American Farmer’s Market” in Everett, Washington and the “Potala Tower” in Seattle’s Belltown neighborhood. DARGEY pitched these projects under the EB-5 program, a federal initiative designed to attract foreign investment and create jobs in exchange for green cards. He promised investors their $500,000 investments would be used responsibly, fueling American growth. Instead, the funds vanished into a web of personal expenses and unauthorized uses.
According to court records, DARGEY didn’t just mismanage funds, he actively stole from his investors. A staggering $11.5 million went to pay illegal sales commissions to brokers in Asia, lavish meals, expensive gifts, and even gambling debts at casinos. He purchased a $1.4 million Bellevue home for a business associate and siphoned off over $10 million in developer fees for his own lavish lifestyle, including a $2.5 million Bellevue home. He also falsely claimed to be investing $32.5 million of his *own* money into the projects – a complete fabrication.
To cover the gaping holes in his funding, DARGEY resorted to forgery, submitting a falsified bank statement to secure a $25 million construction loan and altering financial statements to snag another $60 million from a private institutional investor. The scheme created massive funding shortfalls, jeopardizing both projects and, more importantly, the immigration dreams of 281 foreign investors who had sold everything they owned, relying on DARGEY’s promises.
“This defendant stole not just money but something that he knew from personal experience was much more valuable – the right to come to the United States and live the American dream,” stated U.S. Attorney Annette L. Hayes. The reality is grim: none of the 281 investors have received permanent resident status. Most have had their applications denied, and are now locked in costly appeals, their futures uncertain.
U.S. District Judge Robert S. Lasnik didn’t mince words at sentencing, calling DARGEY’s actions “reckless behavior” that put investors at risk of losing everything. While four years in prison offers a measure of justice, it does little to repair the shattered hopes and financial ruin left in the wake of DARGEY’s calculated fraud. The case serves as a stark warning about the vulnerabilities within the EB-5 program and the predatory practices that can exploit those seeking a better life in America.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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