EB-5 Risk Alert: BREAKING NEWS – Federal agency finds evidence of illegal activity at American Logistics

In a significant development, the U.S. government recently charged American Logistics International with violations of federal labor law. On July 25, a regional office of the National Labor Relations Board issued an unfair labor practice complaint against the company.

The complaint states that American Logistics “has been interfering with, restraining, and coercing employees in the exercise of the rights guaranteed in Section 2(6) and (7) of the [National Labor Relations] Act.” This type of employer behavior is illegal under U.S. labor law.  The agency found evidence that American Logistics interrogated workers about their union support, promised them benefits if they refrained from union activity, and prohibited demonstrating support for a union.

The complaint was issued at the conclusion of an extensive, months-long investigation by the regional office of the National Labor Relations Board. Top level executives were named in the document, including American Logistics’ Vice Chairman, Ramin Bagherzadeh, and the Vice President of Operations. Public records list Mr. Bagherzadeh as a manager of American Logistics International Cold Storage, LLC. This company is associated with American Logistics’ newest EB-5 project to provide investment opportunities in refrigerated warehouse services.

These government charges may raise further concerns for EB-5 investors and stakeholders linked to American Logistics. The company’s ongoing labor dispute with its truck driver workforce has already generated negative media attention and been the subject of public officials’ concerns. These reputational risks could negatively affect American Logistics’ customer relationships and its credibility with local politicians.

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