R
eal estate developers often face risks when using the EB-5 program to finance their projects, but Related Companies CEO Jeff Blau is dealing with a unique threat. According to a lawsuit filed by Blau last week, seven EB-5 investors in Related's Hudson Yards development have been harassing him and his family outside their Upper East Side home.

    The protests began in January and escalated from peaceful demonstrations to threatening messages. In April, the investors allegedly sent Blau photographs of his children entering the house, warning that they would continue to "surprise" and "greet" them until they received their $500,000 investments back. The harassment has continued this summer, with one demonstrator sending toys to Blau's young children.

    Blau is seeking an emergency injunction from the New York Supreme Court to stop the investors from harassing his family. Related spokespersons stated that they hope the court will quickly issue a judgment and put an end to the misconduct. One of the defendants claimed to be working on a settlement with Related, while another denied any involvement in the protests.

    The EB-5 program allows foreign investors to obtain green cards in exchange for investing at least $500,000 in a U.S. business. The program has faced issues, including long wait times and fraud by middlemen known as regional centers. In this case, Blau alleges that the regulations governing EB-5 mandate foreign investors to keep their money "at risk," with debt arrangements not allowed.

    The Hudson Yards project received $380 million in EB-5 funding in 2017, but Related halted distributions to some investors at the onset of the pandemic, arguing that payments were optional. The lawsuit claims that the protesters are not entitled to be paid any sooner than others who invested at the same time, and that they have already received their green cards with no overdue payments.