The Securities and Exchange Commission is investigating the green car company founded by Virginia gubernatorial candidate Terry McAuliffe over concerns that it allegedly guaranteed returns for its investors.
Documents attached to a July 31 letter from Sen. Charles E. Grassley also raise more questions on the extent of the interaction between officials at the two companies and Alejandro Mayorkas, the director of U.S. Citizenship and Immigration Services (USCIS) in the Department of Homeland Security (DHS).
Mr. Mayorkas, President Obama’s pick to be the next No. 2 at DHS, testified last week that the extent of his interaction with Mr. McAuliffe was one meeting in which he heard his complaints about investor visas being held up.
Mr. Grassley said it went further than that.
“Contrary to the impression left by your answer, documents indicate that both before and after that meeting, you actually engaged in nearly a dozen contacts with Gulf Coast Funds Management between 2010 and 2013, including direct communications with Gulf Coast’s attorneys,” the Iowa Republican wrote to Mr. Mayorkas. “That one meeting with Mr. McAuliffe was clearly not the extent of your interaction on that matter.”
The company “is cooperating fully with the SEC’s requests for information and believes it is in full compliance with all applicable laws and regulations.”
A Gulf Cost official did not respond to a request for comment.
News of the SEC investigation was first reported Friday by The Washington Post.
The documents include forwarded e-mails from Mr. McAuliffe to Douglas Smith, an official in DHS’s office of the Private Sector, that were forwarded to Mr. Mayorkas and an e-mail from Mr. Mayorkas himself saying that face-to-face meetings for particular cases are not appropriate.”As the Director of this Agency, I do not adjudicate cases and am not the proper audience for a telephone call or a meeting about a particular case,” he wrote to Gulf Coast’s general counsel earlier this year. “I will forward your e-mail to the appropriate individual in the Agency.”
USCIS handles cases involved in the EB-5 program, where foreign investors put up between $500,000 and $1 million for American companies in exchange for legal status.
Government attorneys wrote that such a meeting would violate the Administrative Procedures Act.