Fraud Gets Chicago Hotel Developer Three Years in Federal Prison

Enticing 290 Chinese nationals to invest $160 million in a failed hotel and convention center development using slick videos claiming he had the backing of several prominent Illinois politicians got 33 year old Anshoo Sethi a three year prison sentence when he pled guilty to wire fraud charges before U. S. district Judge John Lee. Judge Lee also ordered Sethi to repay $8.8 million in restitution to his victims.

Sethi’s misrepresentations included claims he had TIF funding from the City of Chicago, and franchise agreements with Hyatt and other established hotel brands. He also claimed 15 years of experience as a hotel developer, which would have meant his first hotel project began when he was only 14 years old. At the time of sentencing, Sethi had already returned $146 million to investors in the failed project. Investor losses of a little over $10 million went to pay Sethi’s astrologer and doctors performing cosmetic surgery on Sethi’s girlfriend.

Sethi promoted his project with promises investors would have access to immigration to the United States in the government’s EB-5 visa program, providing permanent resident green cards for foreign entrepreneurs who invest in U.S. projects creating 10 or more permanent U. S. jobs.