A federal district court judge in Chicago, IL, has ordered the return of all investors’ principal investment in a fraudulent securities scheme that was supposed to offer investors a path to US citizenship.

In February, the Securities and Exchange Commission froze the assets of Anshoo Sethi and his two firms behind the scheme, which netted some $145 million in securities and collected $11 million in administration fees.

The SEC alleged that Sethi and his Chicago-based firms - A Chicago Convention Center and Intercontinental Regional Center Trust - duped investors into believing that by purchasing interests in the former firm, they would be funding construction of "the world’s first zero carbon emission platinum LEED certified” hotel and a conference center near Chicago’s O’Hare airport.

However, the authority said Sethi and his companies misled Chinese investors about both the purported investment opportunity and the prospect of gaining legal US residency through the EB-5 Immigrant Investor Pilot Program.

The SEC obtained an emergency court order to safeguard the remaining $145 million in investor assets that were at risk of being “similarly misappropriated” by Sethi and his firms.

The asset freeze order has now been modified by a US district judge, who has directed the return of over $147 million in escrowed funds to investors.

“The litigation continues as the SEC seeks further monetary relief and permanent injunctions against Sethi and his companies,” the authority said.