The leader of South Dakota’s Democratic Party says court documents from a years-old lawsuit show an on-going threat for taxpayers. Executive Director Zach Crago says a suit related to South Dakota’s EB-5 foreign investor visa program puts state dollars at risk. He admits the documents are not new and cites filings from a California court in 2009.
"I think the prime matter here is that South Dakota taxpayers are on the hook for millions of dollars, and that has not been revealed to legislators, the press or the public," Crago says. "In fact, we’ve read reports about this Darley arbitration, but previous reports said it was over when, in fact, it’s not. It continues."
Crago says Republican state leaders knew about the lawsuit but didn’t tell the public that it involves money in South Dakota’s general operating fund.
Tony Venhuizen with Governor Dennis Daugaard’s office says, "News media reported on this lawsuit nearly a year ago. The administration is aware of this case, as with all pending litigation against the state."
Venhuizen says state audit reports from 2010 and 2011 show the lawsuit as a possible liability. He says counsel for the state believes that "an unfavorable outcome appears low."