Seattle-Area Real Estate Firm iCap Accused of Fraud

A Bellevue investment firm, iCap, is facing financial and legal troubles amid charges that the firm raised millions of dollars with promises of real estate projects that were never completed and investor repayments that were not fulfilled.  

The firm has been in business for about a decade and claims to develop various types of properties in Washington. Lawsuits allege that iCap and its subsidiaries failed to deliver on their promises, leaving some sites undeveloped, reported the Seattle Times.

Investors, many of whom were Chinese nationals and immigrants, began experiencing issues earlier this year as monthly interest payments ceased, which iCap attributed to challenges in the real estate market. In August, a judge ordered property sales and use of investor funds to be halted, and iCap eventually filed for Chapter 11 bankruptcy. Bankruptcy filings reveal that iCap owes millions to investors and entities, both within the U.S. and in China.