Last month, South Dakota Director of Banking Bret Afdahl said that his office had sent a letter to SDRC Inc. requesting information about its lending activities. Afdahl made this announcement after the Brown County Commission called on the state to investigate whether SDRC Inc., the now infamous EB-5 recruitment company, owes South Dakota $2.4 million in bank franchise taxes.
Afdahl said at the time that companies can take up to 30 days to respond to such questions. That story came out September 9; today is October 10. Whether Afdahl has received an answer is unknown, but in case he hasn't, Scott Waltman sends SDRC Inc. owner Joop Bollen a reminder in today's Aberdeen paper:
If the banking division determines that SDRC Inc. is a financial institution and subject to licensing and paying bank franchise taxes, the state Department of Revenue will work to collect the amount owed, Jason Evans, deputy director of the revenue department, said Wednesday. He said he visited with secretary of the Department of Revenue about the matter [Scott Waltman, "State Considering Brown County Resolution Calling SDRC a Bank," Aberdeen American News, 2014.10.10].
I don't know if this helps, Banking Division, but Joop Bollen's lawyer Jeff Sveen has said that SDRC Inc. "functions similar to a bank." We are all curious to hear whether Sveen says the same thing directly to you.
Lending without license is aka loan sharking. The potentional list just goes on and on: bribbery, racketeering, ponzi, now loan sharking. And Bollen is out walking the dog. Nice!
Exactly Jane, what was SDRC's lending rates?
Don't know their rates. But I have heard Hanul Law Office promise their foreign investors about 15% return in two years on the $500,000 investment. How is that feasible when the businesses in EB-5 program were not that successful. It doesn't make sense, when banks are giving about 1% for savings.