The 35 were among more than 100 Chinese investors who lost their money when the Northern Beef Packers Plant in Aberdeen went bankrupt in 2013. Three months later, Richard Benda, the former Secretary of Tourism and Economic Development and a supporter of the EB-5 program, was found dead in a Charles Mix County shelter belt with what authorities said was a self-inflicted shotgun wound to the abdomen.
Also named in the lawsuit was Joop Bollen, a former state employee who ran EB-5 when it was administered directly by the state. In 2009, Bollen resigned as a state employee. On the same day, Benda signed a contract turning over management of the program to SDRC Inc., a private company run by Bollen.
EB-5 is a federal program that enables wealthy foreigners to obtain permanent legal residency in the United States by investing in qualifying economic development projects. In rural areas including South Dakota, legal residency status can be obtained by an investment of $500,000.
