By Tori Richards | Watchdog.org
RICHMOND — A fledgling electric car company founded by Virginia gubernatorial candidate Terry McAuliffe has sued Watchdog.org following an investigation highlighting the automaker’s use of a controversial government “cash-for-visas” immigration program.
GreenTech Automotive Inc. blames Watchdog for an alleged $85-million loss after publication of two articles detailing the woes of the government immigration program, called EB-5. In one article, a financial expert criticized the EB-5 program as “a fraud.” EB-5 has repeatedly come under fire for lax oversight. An Illinois program was recently the subject of a Securities and Exchange Commission probe.
The EB-5 program was created in 1990, and offers green cards to foreign nationals who invest at least $500,000 in U.S. companies to create 10 or more jobs.
“Specifically, as a direct and express result of the articles published by Defendants … investors are wavering in their commitment to provide $25 million in investments already promised to GTA,” the lawsuit said. “GTA…intended to raise $60 million in capital, (and) is now in significant danger as a direct result of the loss of investor confidence in GTA arising from the publication of Defendants’ articles.”
Jason Stverak, president of Watchdog’s parent company the Franklin Center for Government and Public Integrity, said the lawsuit is baseless.
“As Watchdog explained in clarifications and updated versions of the articles posted on April 5, these articles were not intended to – and did not – accuse GreenTech of fraud,” Stverak said. “We are confident that GreenTech’s claims are without merit and we will continue to report on this important story.”
GTA counts among its allies Hillary Clinton’s brother, Anthony Rodham, who shares an office with GTA and is CEO of Gulf Coast Funds Management, an EB-5 center that raises visa-investor money for GTA. McAuliffe also was chief fundraiser for Clinton’s presidential bid. Bill Clinton made a high-profile visit to the company last year.
The lawsuit, accusing Watchdog of defamation and interference with business relations, was filed Monday in Mississippi where GTA says it plans to build an auto plant. On April 1 and 3, Watchdog detailed the travails of McAuliffe’s car company funding and challenges to enter the marketplace by next year. The lawsuit also names two web sites that ran the Watchdog story, one in Chinese.
In response to McAuliffe’s 2009 request for public support of GreenTech Automotive in his home state of Virginia, then-Gov. Tim Kaine’s administration expressed “grave doubts” about the project’s viability, according to documents obtained by Watchdog.org, National Review and Washington Post.
GTA president Charles Wang could not be reached for comment.
Contact Tori Richards at firstname.lastname@example.org or follower her on twitter at @newswriter2.
Concerned about what DC is up to? Click here to get our breaking news alerts!
- VA: As he runs for governor, McAuliffe wheels and deals electric cars in Mississippi
- VA: Media echo Watchdog exclusive on McAuliffe’s electric car maneuvers
- No news here: PolitFact brands Terry McAuliffe’s electric-car claim ‘false’
- Experts question source of McAuliffe car-company funding
- Terry McAuliffe on business ventures: ‘Some work, some don’t’
- How McAuliffe’s car company failed the Virginia test, landed in Mississippi
- Virginia official wants probe of McAuliffe company ‘visa-for-sale’ program
- McAuliffe car company sues Watchdog in libel claim
- Barack Obama’s GreenTech connection: Rick Wade
- Silence, secrecy, cops follow GreenTech’s China deal
- McAuliffe hones China’s crony-capitalism model in U.S.
- Promises keep Tunica County afloat
- McAuliffe company’s China hook-up: Will it work?
- McAuliffe car lags in Domino’s delivery
- McAuliffe car co. parent in off-shore tax shelter
- Lawmaker gives feds one more week for EB-5 answers
- Bolling: McAuliffe’s Mississippi package ‘attractive’
- Inside, execs knew McAuliffe plan had ‘substantial risk’
- Union darling McAuliffe and his non-union car company
- Did Clinton aid the birth of ‘McAuliffe’ car company?
- McAuliffe feels heat over GreenTech resignation
- TV report: One year later, ‘party is over’ at GreenTech
- Months after he said he left company, McAuliffe kept talking GreenTech
- Clinton connection: More money for McAuliffe
- Terry McAuliffe used loophole to avoid key SEC oversight of his car company
- VA officials: McAuliffe green car more politics than biz
- McAuliffe car company announces it’s ready to roll — again
- Before Watchdog, McAuliffe blamed federal officials for money trouble
- McAuliffe gets cash from GreenTech exec, board members
- Watchdog report on McAuliffe spurs FOI request to Homeland Security
- McAuliffe leaves GreenTech questions hanging at debate
- Totally wired: McAuliffe went to Napolitano to expedite company funding
- McAuliffe bragged about GreenTech’s cash position while begging feds for faster processing of ‘cash for visas’
- Investigation targets Homeland official’s relationship to McAuliffe company
- Even before news of federal probe, McAuliffe ducked GreenTech questions
- McAuliffe company pressed Homeland official on 81 investor visas
- Rodham company sought visa for controversial Chinese exec
- Immigration official says he met with McAuliffe to discuss visas for foreign investors
- Whiners: Mayorkas says Gulf Coast ‘continues to complain’
- VIDEO: Ex-GreenTech employee says little happened at Horn Lake plant
- Online ad to Terry McAuliffe: Drop your lawsuit
- National security on ‘hold’: Lawmakers press McAuliffe for answers
- Citizens United documentary film delves into McAuliffe, GreenTech
- VIDEO: Terry McAuliffe’s 15 million-square-foot car plant … in China
- Feds call McAuliffe car company’s use of investment program ‘possible fraud’
- GreenTech courted Obama’s Solyndra aide
- GOP legislators call for McAuliffe to answer GreenTech questions
- McAuliffe ‘desperate’ over documentary, Citizens United says
- GreenTech weighed Fisker-style federal loan
- Group tells Terry: Follow ‘McAuliffe Standard’ on disclosure
- Car and Driver races into GreenTech controversy
- Congressman: McAuliffe owes Virginians explanation about White House meeting
- Feds loosen oversight as McAuliffe car company makes mysterious management change
- GreenTech execs use Times and ABC to throw McAuliffe under the (non-electric) bus
- Aide in union contribution swap hosts California fund-raiser for McAuliffe
- Despite denials, docs show McAuliffe company asked feds to fast-track visa for investor tied to spy list
- Former Democrat Party director was on GreenTech payroll
- More bad news for McAuliffe car company as GreenTech China venture stalls
- Clinton Foundation posts deficits on McAuliffe’s watch
- VIDEO: GreenTech record dogs McAuliffe at energy forum
- Auto industry expert labels McAuliffe electric car ‘preposterous’
- Democratic leaders have their own Bain pain in Mideast private equity deal
- Hillary PAC adviser served as GreenTech spokeswoman
- New emails add evidence McAuliffe pressed U.S. officials to approve GreenTech funding
- After endorsement, Post shrinks facts to cover Terry McAuliffe
- Ties that bind: Following the McAuliffe-Clinton money trail
- McAuliffe tilts at windmills; Chinese venture goes bust
- Federal investigations cast shadow over McAuliffe on Election Day
- DHS inspector over GreenTech-McAuliffe case is under investigation
- McAuliffe names former GreenTech employee secretary of commonwealth
- McAuliffe lawyers, accountants sort GreenTech stock amid federal investigations
- Nuking filibusters, Dems clear way for Mayorkas at Homeland Security
- U.S. judge hands Watchdog a victory over VA governor’s green-car company
- Attorney: McAuliffe is ‘100 percent divested’ of GreenTech
- Investigation finds Mayorkas used visa program to help White House allies
- Criminal investigation sought in McAuliffe-Mayorkas dealings