$130M Tinian Casino Project’s Titanic Failure Sparks Investor Lawsuit

On Tinian Island, a $130 million "Titanic-themed resort and casino" did not do as well as the ship that served as its model.  The Titanic, at least, made it past the blueprint stage.

On Tinian, which is a part of the U.S. Northern Mariana Islands in the western Pacific, just north of Guam, construction has not begun ten years after the "Tinian Ocean View Resort and Casino" was first proposed to investors.

Before Launch, Sunk

The casino was first portrayed as Tinian's economic lifeline, but the anticipated tourism and jobs never materialized.

According to Marianas Variety, a group of investors, including 23 Chinese nationals, have now sued the New York State Supreme Court for $13.4 million, claiming they were stiffed.  They contend that the developer's misrepresentations, poor management, and broken promises are the reasons the project never came to fruition.

Even worse, the investors were informed that by generating jobs in the US territory of the Northern Marianas, their EB-5 payments would earn them green cards.  Neither the permits nor the promised development ever came to pass.

By investing at least $800,000 in US enterprises that create at least 10 employment, overseas investors can apply for permanent US immigration under the EB-5 program.

Bridge Investment Group LLC is the developer mentioned in the case.  This is not the same as Bridge Investment Group Holdings Inc., a publicly traded private equity real estate company with headquarters in Utah that is unrelated to the case. 

In order to obtain investments connected to the EB-5 visa program, the plaintiffs, who are all members of the American Northern Marianas Economic Development Fund LLC, claim that the defendants deceived them and breached certain legal obligations.

Nearly $12.1 million from these 23 plaintiffs (and much larger amounts from other Class B investors), according to the investment pitch, would finance the construction of a 300-room casino resort with features like two hotels (one "luxury," one "mid-range"), dining and retail establishments, convention space, spa services, and even a ferry service.

The complaint alleges that the fund transferred approximately $64 million to Bridge Investment Group.

However, according to the lawsuit, the loans were provided without collateral, documented agreements, or repayment promises.  According to the plaintiffs, the casino license was never pledged in order to obtain funding. The complaint argues that the project was doomed from the beginning in the absence of bank finance or refinancing.

 "Brenched Promises"

The lawsuit also cites advertising claims that were spread on WeChat and via the Hong Kong-based immigration consultant Canbo International Group, which purportedly promised quick visa applications and showed false building progress.

Following notices of intent to cancel previously accepted petitions from U.S. immigration officials, Canbo abruptly closed a group chat for investors in August 2023.  The plaintiffs contend that this was an effort to silence inquiries as the project came to a standstill.

The complaint also identifies shortcomings in the EB-5 job-creation model, pointing out that Tinian's limited supply of American workers and dependence on imported materials made it unlikely that the project would ever meet the 10 jobs per investor criteria.

The lawsuit names Xianjun Meng, the CEO of Bridge Investment Group LLC and managing director of the American Northern Marianas Regional Center (ANMRC); his wife Silvia Siu, also called Xiao Bing; and two New York lawyers, Jin An and Samuel Newbold.  In addition, Meng and Siu are the principals of the immigration consulting firm Canbo International Group Ltd., which is situated in Hong Kong.

The plaintiffs seek damages in addition to recovery of their assets, alleging breach of fiduciary duty, fraud, conversion, unjust enrichment, legal malpractice, and careless misrepresentation.

The complaint has not yet received a response from the defendants.