As we wait for the South Dakota Division of Banking to determine whether Joop Bollen should have been paying bank franchise tax on the money he made fleecing foreign investors, an eager reader finds a hint that Bollen's boon companion James Park may also have been evading bank franchise tax.
Before Northern Beef Packers, the Veblen dairies were the biggest project in South Dakota's EB-5 program. The Veblen dairies received $13.5 million in EB-5 investment from 27 Korean investors before violating South Dakota environmental rules and going bankrupt in 2010.
Among the creditors listed on the Veblen East Dairy list of unsecured claims was Park's firm Hanul Professional Law Corporation, which claimed to have loaned Veblen East $2 million. Mikkel Pates reported that Hanul had $2.45 million in claims against the associated Dairy Dozen Veblen LLP but received only $248 in the bankruptcy settlement.
Hmm... so Hanul was a law firm, but they were lending at least $2 million to the Veblen dairies. As with Bollen's EB-5 shop SDRC Inc., Hanul appears neither to have obtained a lending license nor paid bank franchise tax on any proceeds from loans nor even an official exemption like the one the Banking Commission granted to shady offshore lender Epoch Star to save Northern Beef Packers.
The more we investigate South Dakota's EB-5 program, the more we find EB-5 players Joop Bollen and James Park trying to avoid the rules by which honest South Dakotans play.