High Stakes: A Delaware Supreme Court Battle to Clear a Businessman’s Name in an EB-5 Investment Coordination Case

Joseph Manheim, the owner of a company that focuses on coordinating US infrastructure investments for foreign nationals seeking EB-5 visas, is challenging a $2.5 million damages award made against his business by a trial court. The decision was based on the finding that he had funneled funds to himself and another executive without the approval of Paula Mandle, a director he appointed to a Delaware Valley Regional Center LLC affiliate.

Manheim’s attorney, Bruce Jameson, is arguing that Manheim did not require Mandle’s approval for any of his decisions. He believes that the trial court erred in its ruling and that his client should not be held liable for compensation to Mandle.

The case has now been taken up by the Delaware Supreme Court as Manheim seeks to overturn the lower court ruling and clear his name of any wrongdoing. The outcome of this appeal will have significant implications for both Manheim and his company, as well as for foreign nationals who seek EB-5 visas through this type of investment coordination services.

According to Jameson, Manheim did not knowingly engage in any illegal activities or misappropriate funds from investors. He also claims that Mandle was aware of her role as an unpaid director and did not object to Manheim’s actions.

Despite these claims, the trial court found that Manheim had breached his fiduciary duties to investors and awarded $442,000 in compensation to Mandle.

The Delaware Supreme Court will now hear arguments from both sides before making a final ruling. The outcome will determine whether Manheim is responsible for the damages award and whether he can continue operating his business with integrity.

Overall, this case highlights the importance of transparency and accountability in investment coordination services for foreign nationals seeking EB-5 visas. It also serves as a reminder that individuals who engage in such activities must act with utmost care to avoid legal consequences and maintain their reputation within their industry.