Palo Alto lawyer, partner convicted in visa fraud plot

A Palo Alto lawyer and her business partner have been convicted of fraud after running a nearly decade-long visa scheme that preyed upon the EB-5 visa program and foreign investors, according to a Justice Department spokesperson.

Jennifer Yang, 52, and Las Vegas resident Daniel Wu, 56, raked in over $4 million from foreign investors between 2007 and 2016, claiming in fraudulent documents that the money had been invested into commercial enterprises — when in fact it partially bankrolled their luxury hotel stays and car purchases.

A federal jury found the duo guilty this week of various charges related to the scheme, including conspiracy, visa fraud, mail fraud and identity theft, capping a five-week jury trial and marking yet another Bay Area EB-5 program as a sham.

The controversial program allows foreign investors to apply for a green card in exchange for investing in American ventures and creating at least 10 permanent jobs — but has been plagued with criticisms for years.

In charges first filed in October 2017, prosecutors claimed that Yang fashioned herself as an EB-5 expert for foreigners seeking a green card. Alongside Wu, she filed visa petitions for at least seven foreigners, who provided a total of around $4 million that was intended for American investments.

Rather than completing legitimate investments, prosecutors said, the duo submitted fake records to the government containing information about phony enterprises and employees. In several instances, Wu and Yang used the real identities of third parties in their fraudulent documents.

The investors’ money, meanwhile, largely ended up in Wu and Yang’s pockets, paying for both luxury items and the college tuition of a family member.

The EB-5 program has come under fire numerous times for fraud — including in the Bay Area — since its adoption in 1990. Earlier this year, federal authorities filed various charges against a South Bay lawyer and her ex-husband, Danhong “Jean” Chen and Jianyun “Tony” Ye, after the pair nabbed at least $12.7 in illegal commissions from overseas clients looking for visas.

In another high-profile case, Oakland businessman Tom Henderson — a real estate investor and the onetime owner of the Tribune Tower — was indicted for defrauding at least 200 foreigners of about $110 million within a six-year period.

For their part, Wu and Yang both pleaded not guilty to the scheme. They were ordered for release on a $500,000 bond, pending their April sentencing.