1 00:00:08,341 --> 00:00:10,343 Narrator: In this episode of "American Greed"... 2 00:00:10,377 --> 00:00:12,579 He was born at the top of the world 3 00:00:12,612 --> 00:00:15,015 and the bottom of the ladder. 4 00:00:15,048 --> 00:00:19,552 Lobsang Dargey, a poor Buddhist monk from Tibet. 5 00:00:19,586 --> 00:00:23,256 He comes to America with dreams of climbing that ladder 6 00:00:23,289 --> 00:00:27,160 and trading his robe for riches. 7 00:00:27,193 --> 00:00:28,528 He was a force of nature. 8 00:00:28,561 --> 00:00:30,230 Well, he's a fascinating person. 9 00:00:30,263 --> 00:00:32,399 Narrator: He marries a woman who can open doors... 10 00:00:32,432 --> 00:00:37,237 from a family of American sports royalty. 11 00:00:37,270 --> 00:00:39,639 Zlab: He's engaging. He's unstoppable. 12 00:00:44,144 --> 00:00:46,446 This dude's... This dude's doing stuff. 13 00:00:46,479 --> 00:00:49,282 Narrator: This dude's living the American dream 14 00:00:49,315 --> 00:00:52,352 and selling it to wealthy Chinese investors. 15 00:00:52,385 --> 00:00:54,454 A record number of Chinese are looking 16 00:00:54,487 --> 00:00:56,289 to get into the United States, 17 00:00:56,322 --> 00:00:58,658 and they are willing to pay big money to make it happen. 18 00:00:58,692 --> 00:01:01,528 He did something bat[bleep] crazy. 19 00:01:01,561 --> 00:01:03,663 Wilkinson: This was a fraud that was snowballing 20 00:01:03,697 --> 00:01:06,533 and just getting bigger and bigger and out of control. 21 00:01:06,566 --> 00:01:10,070 Narrator: $120 million are on the table, 22 00:01:10,103 --> 00:01:13,206 and the dreams of 250 immigrant investors 23 00:01:13,239 --> 00:01:16,409 are about to go up in smoke. 24 00:01:16,443 --> 00:01:18,645 They would be asked to leave the country immediately. 25 00:01:18,678 --> 00:01:20,146 They would be deported. 26 00:01:20,180 --> 00:01:22,282 Narrator: And when the feds come calling, 27 00:01:22,315 --> 00:01:25,352 his own dream becomes a nightmare. 28 00:01:26,486 --> 00:01:28,788 The former monk isn't talking, 29 00:01:28,822 --> 00:01:31,658 but "American Greed" has the inside story 30 00:01:31,691 --> 00:01:35,295 from those who thought they knew him best. 31 00:01:35,328 --> 00:01:38,565 He's a driven person where nothing gets in his way. 32 00:01:38,598 --> 00:01:40,667 If you are asking me, "Did he need to be stopped?" 33 00:01:40,700 --> 00:01:42,402 Absolutely. 34 00:01:42,435 --> 00:01:50,435 ♪♪ 35 00:02:01,287 --> 00:02:05,725 Narrator: Dawn breaks on the upscale Seattle suburb of Bellevue. 36 00:02:05,759 --> 00:02:09,229 Tucked into the hillside is a multi-million dollar mansion 37 00:02:09,262 --> 00:02:11,664 with a swimming pool in the backyard 38 00:02:11,698 --> 00:02:14,334 and a Bentley in the garage. 39 00:02:14,367 --> 00:02:17,604 It's the home of a prominent Seattle real estate developer 40 00:02:17,637 --> 00:02:21,641 named Lobsang Dargey and his wife Tami Agassi, 41 00:02:21,675 --> 00:02:26,055 the sister of tennis great Andre Agassi. 42 00:02:26,079 --> 00:02:29,215 Lobsang and Tami would appear to have it all, 43 00:02:29,249 --> 00:02:34,220 but a knock at the door is about to change all of that. 44 00:02:34,254 --> 00:02:36,065 Agassi: So, Lobsang's sleeping. 45 00:02:36,089 --> 00:02:38,425 I'm up early with the twins, 46 00:02:38,458 --> 00:02:42,429 and the FBI knocks on our door. 47 00:02:42,462 --> 00:02:44,597 Moran: Mr. Dargey came out in his underwear. 48 00:02:44,631 --> 00:02:46,599 We told him to put some clothes on 49 00:02:46,633 --> 00:02:49,235 and then we sat down and tried to talk to Mr. Dargey. 50 00:02:49,269 --> 00:02:52,339 Narrator: The feds have a lot of questions for Lobsang, 51 00:02:52,372 --> 00:02:56,085 like how he financed his mansion and his Bentley, 52 00:02:56,109 --> 00:02:58,445 what is he doing with his investor's money 53 00:02:58,478 --> 00:03:00,447 and why is he lying about it? 54 00:03:00,480 --> 00:03:03,717 Money was continuing to come in and being misappropriated. 55 00:03:03,750 --> 00:03:06,586 There's no way to defend falsifying a bank statement. 56 00:03:06,619 --> 00:03:08,154 And it was clear to us that there were 57 00:03:08,188 --> 00:03:10,757 going to be huge losses for investors. 58 00:03:10,790 --> 00:03:14,794 Narrator: On the same day, federal agents raid Dargey's offices, 59 00:03:14,828 --> 00:03:18,465 leaving his long-time colleagues stunned. 60 00:03:18,498 --> 00:03:21,868 There's men and women in FBI windbreakers everywhere, 61 00:03:21,901 --> 00:03:24,738 pulling computers off desks and shoving stuff in boxes. 62 00:03:24,771 --> 00:03:26,573 It was very scary. 63 00:03:26,606 --> 00:03:31,244 There was probably 15 FBI agents looking at you, 64 00:03:31,277 --> 00:03:33,780 wondering what you did wrong. 65 00:03:33,813 --> 00:03:36,649 Narrator: Tami Agassi is suddenly looking at her husband 66 00:03:36,683 --> 00:03:38,852 and wondering the same thing. 67 00:03:38,885 --> 00:03:40,820 Our world blew up, 'cause I needed to know 68 00:03:40,854 --> 00:03:42,922 if I was married to a criminal. 69 00:03:42,956 --> 00:03:46,092 Narrator: Tami will soon discover that her husband is more than 70 00:03:46,126 --> 00:03:48,094 just a common criminal. 71 00:03:48,128 --> 00:03:52,098 His life is a corruption of the American dream. 72 00:03:52,132 --> 00:03:56,302 It was, in all respects, an American success story 73 00:03:56,336 --> 00:03:58,805 if he didn't take a wrong way turn. 74 00:03:58,838 --> 00:04:06,838 ♪♪ 75 00:04:07,714 --> 00:04:14,554 Narrator: Born in 1973, Lobsang Dargey comes from stark beginnings, 76 00:04:14,587 --> 00:04:17,824 the youngest of three sons toiling on a small Tibetan farm 77 00:04:17,857 --> 00:04:21,428 without electricity or running water. 78 00:04:21,461 --> 00:04:25,465 It's a far cry from a mansion in Bellevue. 79 00:04:25,498 --> 00:04:26,942 From what I understand, Lobsang had a very, 80 00:04:26,966 --> 00:04:28,802 very hard upbringing. 81 00:04:28,835 --> 00:04:31,304 I know that they were very poor, 82 00:04:31,338 --> 00:04:33,473 that he didn't even get his first toothbrush 83 00:04:33,506 --> 00:04:36,609 till he made it to India at 19 or 20. 84 00:04:36,643 --> 00:04:38,144 He grew up in a small hut. 85 00:04:38,178 --> 00:04:40,347 They would burn yak dung for fuel. 86 00:04:40,380 --> 00:04:42,148 It was that humble. 87 00:04:42,182 --> 00:04:44,918 Narrator: At 13, Lobsang is shipped off 88 00:04:44,951 --> 00:04:49,389 to a Buddhist monastery to become a monk. 89 00:04:49,422 --> 00:04:55,395 It's not the boy's choice. It's economic necessity. 90 00:04:55,428 --> 00:04:57,497 Conditions there are harsh. 91 00:04:57,530 --> 00:05:02,168 Lobsang is lonely, and eventually in great danger. 92 00:05:02,202 --> 00:05:04,604 Reporter: Over the past two years, the Chinese Army 93 00:05:04,637 --> 00:05:07,707 has clashed with local people four times. 94 00:05:07,741 --> 00:05:11,177 Tibetan monks led demonstrators in demanding independence 95 00:05:11,211 --> 00:05:13,313 from Chinese rule. 96 00:05:13,346 --> 00:05:17,951 Narrator: The uprising in Tibet sends Lobsang running for his life. 97 00:05:18,051 --> 00:05:21,621 He treks 2,800 miles across the Himalaya mountains 98 00:05:21,654 --> 00:05:25,191 to find refuge at the Dalai Lama's Kirti Monastery 99 00:05:25,225 --> 00:05:29,195 in Dharamshala, India. 100 00:05:29,229 --> 00:05:34,801 For a devout Buddhist monk, Kirti is a holy place, 101 00:05:34,834 --> 00:05:38,638 but Lobsang finds another calling here... 102 00:05:38,672 --> 00:05:40,206 Business. 103 00:05:40,240 --> 00:05:43,743 He has a gift for haggling at the local market 104 00:05:43,777 --> 00:05:48,057 that earns him the formal role of "Business Monk." 105 00:05:48,081 --> 00:05:50,350 You don't really think of ambition 106 00:05:50,383 --> 00:05:51,918 when you think of Tibetan monks, 107 00:05:51,951 --> 00:05:55,755 and he was the business side of the monastery, 108 00:05:55,789 --> 00:05:58,324 and so maybe that started the little seed 109 00:05:58,358 --> 00:06:00,060 of being an entrepreneur, 110 00:06:00,093 --> 00:06:02,629 being in charge of the money at the monastery. 111 00:06:02,662 --> 00:06:06,633 Narrator: As Business Monk, Lobsang befriends Western travelers 112 00:06:06,666 --> 00:06:08,401 visiting the monastery. 113 00:06:08,435 --> 00:06:11,938 While the tourists see a charming young holy man, 114 00:06:12,038 --> 00:06:16,776 he may see a ticket to pursue his true calling in America. 115 00:06:16,810 --> 00:06:19,779 Agassi: One of the Western travelers that he met, 116 00:06:19,813 --> 00:06:22,816 he would cold call her all hours of the day. 117 00:06:22,849 --> 00:06:26,586 And finally, just because he badgered her to death, 118 00:06:26,619 --> 00:06:30,457 she finally said okay and sent a letter of invitation. 119 00:06:30,490 --> 00:06:33,927 Narrator: Dargey's ticket is punched and his bags are packed. 120 00:06:33,960 --> 00:06:38,498 The enterprising young business monk is on his way to America. 121 00:06:38,531 --> 00:06:44,971 ♪♪ 122 00:06:45,071 --> 00:06:49,776 In this strange new land of milk and honey, Dargey is broke, 123 00:06:49,809 --> 00:06:51,978 but wide-eyed with ambition. 124 00:06:52,078 --> 00:06:56,116 He sees freedom, wealth, and opportunity all around him, 125 00:06:56,149 --> 00:06:57,684 and he wants some. 126 00:06:57,717 --> 00:06:59,285 He gets here to America and it's like, 127 00:06:59,319 --> 00:07:01,287 "Hey, man, this is like a circus. 128 00:07:01,321 --> 00:07:03,723 Everything's gravy after what I've been through." 129 00:07:03,757 --> 00:07:07,627 Joe Zlab, Dargey's friend and former vice president, 130 00:07:07,660 --> 00:07:11,031 has a front row seat to his transformation. 131 00:07:11,064 --> 00:07:13,009 "Rules? Sure, I'll obey the rules, 132 00:07:13,033 --> 00:07:15,468 but I don't necessarily know all the rules, 133 00:07:15,502 --> 00:07:16,679 and I'm just going to go whole hog. 134 00:07:16,703 --> 00:07:18,672 I'm going to do everything I can. 135 00:07:18,705 --> 00:07:20,040 I'm going to be unstoppable." 136 00:07:25,912 --> 00:07:28,682 Narrator: In Seattle, Lobsang finds many of the locals 137 00:07:28,715 --> 00:07:32,919 sympathetic to the plight of an exiled Tibetan monk. 138 00:07:32,952 --> 00:07:36,089 With their help, he picks up odd jobs. 139 00:07:36,122 --> 00:07:40,727 He's known around town as "the painting monk." 140 00:07:40,760 --> 00:07:44,497 Agassi: I actually know a realtor who knew him as the painting monk, 141 00:07:44,531 --> 00:07:48,335 and how he would carry his ladder and paints on the bus, 142 00:07:48,368 --> 00:07:51,504 which was against all the rules. 143 00:07:51,538 --> 00:07:54,116 [ Phone dialing ] Narrator: And before long, he puts down the paint brush 144 00:07:54,140 --> 00:07:58,978 and picks up a phone, selling commercial phone service. 145 00:07:59,079 --> 00:08:01,881 Agassi: He would cold call all day until his whole face would be red. 146 00:08:01,915 --> 00:08:03,817 His ear would be red, 147 00:08:03,850 --> 00:08:06,920 but they said he always closed the deal at the end of the day. 148 00:08:07,020 --> 00:08:10,924 Narrator: A closer, earning enough to buy a small house. 149 00:08:11,024 --> 00:08:13,593 And with roots now planted in America, 150 00:08:13,626 --> 00:08:17,931 Dargey sheds the robes that never really fit. 151 00:08:18,031 --> 00:08:20,009 Poverty and chastity? 152 00:08:20,033 --> 00:08:22,836 Why not give money and women a try? 153 00:08:22,869 --> 00:08:27,016 And a chance encounter with Tami Agassi in 2003 154 00:08:27,040 --> 00:08:30,910 offers up just the kind of woman he's looking for. 155 00:08:30,944 --> 00:08:34,080 I was executive director for a non-profit in Seattle. 156 00:08:34,114 --> 00:08:37,026 As part of my job, I held a lot of relationships 157 00:08:37,050 --> 00:08:40,086 with a lot of people who were very philanthropic. 158 00:08:40,120 --> 00:08:42,889 Narrator: Tami rubs elbows with wealth and power 159 00:08:42,922 --> 00:08:46,126 and her brother is a superstar. 160 00:08:46,159 --> 00:08:48,128 You have often said, Andre, that your sister Tami 161 00:08:48,161 --> 00:08:49,696 is your best friend. 162 00:08:53,166 --> 00:08:56,703 For sure he knew my brother was a sports superstar. 163 00:08:56,736 --> 00:08:59,048 And at the beginning I thought it was really refreshing, 164 00:08:59,072 --> 00:09:01,241 because he pretended that he didn't know. 165 00:09:01,274 --> 00:09:03,610 Narrator: At the time, her brother, Andre, 166 00:09:03,643 --> 00:09:06,913 is the #1 ranked tennis player in the world. 167 00:09:07,013 --> 00:09:08,715 Opportunity is knocking, 168 00:09:08,748 --> 00:09:12,752 and the fearless young salesman is dialing. 169 00:09:12,786 --> 00:09:17,090 Agassi: He proceeded to cold call me for over a year to go on a date. 170 00:09:17,123 --> 00:09:18,858 This was the call. 171 00:09:18,892 --> 00:09:22,004 "Hello, Tami, this Lobsang. You want to go dinner sometime?" 172 00:09:22,028 --> 00:09:23,763 He was very aggressive. 173 00:09:23,797 --> 00:09:26,008 He had no understanding of protocol. 174 00:09:26,032 --> 00:09:29,569 You shot him down, he acted like he didn't really register it 175 00:09:29,602 --> 00:09:31,013 and would tell you to call him 176 00:09:31,037 --> 00:09:33,440 if you wanted to go to the movies sometime. 177 00:09:33,473 --> 00:09:35,141 Narrator: After a year of saying "no," 178 00:09:35,175 --> 00:09:37,844 Tami finally says, "Okay already." 179 00:09:37,877 --> 00:09:43,616 And, much to her surprise, resistance gives way to love. 180 00:09:43,650 --> 00:09:45,885 Agassi: Well, he's a fascinating person. 181 00:09:45,919 --> 00:09:48,621 He's highly intelligent. He's very charismatic. 182 00:09:48,655 --> 00:09:50,557 He knows how to live in the present. 183 00:09:50,590 --> 00:09:53,159 He doesn't adhere to any social protocol, 184 00:09:53,193 --> 00:09:56,963 which makes him hilarious. 185 00:09:57,063 --> 00:10:00,066 Narrator: Lobsang closes perhaps the biggest deal of his life 186 00:10:00,100 --> 00:10:03,937 when the couple marry in December, 2004. 187 00:10:03,970 --> 00:10:07,674 Now headed for U.S. citizenship in a well-connected family, 188 00:10:07,707 --> 00:10:09,476 Lobsang is set up to carve out 189 00:10:09,509 --> 00:10:12,812 his own slice of the American pie. 190 00:10:12,846 --> 00:10:14,614 Looking back, Tami now wonders 191 00:10:14,647 --> 00:10:17,283 how much of the groom's affection was heartfelt 192 00:10:17,317 --> 00:10:20,053 and how much was hustle. 193 00:10:20,086 --> 00:10:23,056 I think Lobsang is an opportunist. 194 00:10:23,089 --> 00:10:26,159 It doesn't mean that he didn't care about me, 195 00:10:26,192 --> 00:10:28,228 but I think his eyes lit up 196 00:10:28,261 --> 00:10:30,063 with the circle that was around me. 197 00:10:30,096 --> 00:10:32,165 ♪♪ 198 00:10:32,198 --> 00:10:33,933 Narrator: Up next... 199 00:10:36,736 --> 00:10:38,838 Narrator: Charity begins at home. 200 00:10:38,872 --> 00:10:41,508 For this hustler, so does greed. 201 00:10:41,541 --> 00:10:43,519 Agassi: At the time, I didn't think anything of it. 202 00:10:43,543 --> 00:10:45,078 We were building a life together. 203 00:10:45,111 --> 00:10:48,348 Looking back, that's flat-out insane. 204 00:10:48,381 --> 00:10:50,050 Narrator: And later, where does 205 00:10:50,083 --> 00:10:53,853 a young American entrepreneur go to raise capital? 206 00:10:53,887 --> 00:10:56,523 Communist China, of course. 207 00:10:56,556 --> 00:11:00,527 Reporter: Cash-heavy Chinese increasingly want U.S. citizenship. 208 00:11:00,560 --> 00:11:03,039 He was offering a green card guarantee. 209 00:11:03,063 --> 00:11:05,365 And he sold them on the American dream. 210 00:11:05,398 --> 00:11:10,170 ♪♪ 211 00:11:13,940 --> 00:11:21,940 ♪♪ 212 00:11:23,316 --> 00:11:24,984 Narrator: In Bellevue, Washington, 213 00:11:25,085 --> 00:11:28,154 Lobsang Dargey chases a new dream... 214 00:11:28,188 --> 00:11:30,156 Real estate development, 215 00:11:30,190 --> 00:11:34,160 with his new wife, Tami, as his angel investor. 216 00:11:34,194 --> 00:11:37,230 The second we got married, he had quit his job, 217 00:11:37,263 --> 00:11:39,432 lived off my salary for a year and a half, 218 00:11:39,466 --> 00:11:43,303 and started pulling money out of my assets to buy real estate. 219 00:11:43,336 --> 00:11:46,106 Narrator: He convinces Tami to mortgage her house, 220 00:11:46,139 --> 00:11:50,443 taking out a loan of $300,000 against her equity. 221 00:11:50,477 --> 00:11:52,479 At the time, I didn't think anything of it. 222 00:11:52,512 --> 00:11:54,314 We were building a life together. 223 00:11:54,347 --> 00:11:57,017 Narrator: Tami is not the only one in the Agassi family 224 00:11:57,117 --> 00:11:59,019 charmed by Lobsang. 225 00:11:59,119 --> 00:12:02,822 Her father, Mike, immigrated to America from Iran 226 00:12:02,856 --> 00:12:07,293 and he sees in Lobsang a younger version of himself. 227 00:12:07,327 --> 00:12:11,765 He invests $300,000 with his son-in-law. 228 00:12:11,798 --> 00:12:13,633 The young developer gets to work 229 00:12:13,667 --> 00:12:15,802 buying and renovating old buildings 230 00:12:15,835 --> 00:12:18,938 in the working class town of Everett, Washington, 231 00:12:18,972 --> 00:12:21,808 and they are happy to have him. 232 00:12:21,841 --> 00:12:26,179 The city was happy because Lobsang had potential. 233 00:12:26,212 --> 00:12:30,884 You bring in a young, ambitious, aggressive, developer? 234 00:12:30,917 --> 00:12:33,253 They're going to be happy. It's good for the city. 235 00:12:33,286 --> 00:12:37,157 [ Tools whirring ] Narrator: In 2008, he graduates to new construction 236 00:12:37,190 --> 00:12:40,894 with a large residential and retail complex. 237 00:12:40,927 --> 00:12:43,396 He calls it Potala Village, 238 00:12:43,430 --> 00:12:46,299 named after Potala Palace in Tibet, 239 00:12:46,332 --> 00:12:49,936 once home to the Dalai Lamas. 240 00:12:49,969 --> 00:12:54,307 Lobsang funds the project by raising $22 million 241 00:12:54,341 --> 00:12:58,244 through Tami's personal connections and a bank loan. 242 00:12:58,278 --> 00:13:04,184 He got a loan in 2008, when no one was getting loans, 243 00:13:04,217 --> 00:13:06,186 or it was very difficult to get loans, especially, 244 00:13:06,219 --> 00:13:08,097 you know, for millions of dollars to build a building. 245 00:13:08,121 --> 00:13:09,889 Most developers were kind of curling up 246 00:13:09,923 --> 00:13:11,524 into the fetal position at that point, 247 00:13:11,558 --> 00:13:13,560 and he's like, "No, we're gonna do this thing." 248 00:13:13,593 --> 00:13:17,130 And so we did. 249 00:13:17,163 --> 00:13:20,333 He built it out when most people were not building. 250 00:13:20,367 --> 00:13:22,207 He kind of got a name for himself at that point 251 00:13:22,235 --> 00:13:25,071 of like, "This dude... This dude's doing stuff." 252 00:13:25,105 --> 00:13:30,410 [ Singing ] 253 00:13:30,443 --> 00:13:33,213 Narrator: And though he is no longer a monk, 254 00:13:33,246 --> 00:13:37,917 Buddhism is still part of his life and part of his brand. 255 00:13:37,951 --> 00:13:40,420 Potala village is adorned with symbols 256 00:13:40,453 --> 00:13:43,957 that play well here in the progressive Seattle area, 257 00:13:43,990 --> 00:13:48,528 where Dargey's heritage gives him cachet. 258 00:13:48,561 --> 00:13:52,532 He was very spiritual. He would bring in monks. 259 00:13:52,565 --> 00:13:54,968 When he'd buy a new construction site, 260 00:13:55,001 --> 00:13:57,380 before the groundbreaking, that would be part of the ceremony, 261 00:13:57,404 --> 00:13:59,205 where they'd come out and bless the ground. 262 00:13:59,239 --> 00:14:00,940 It was really important to him to have 263 00:14:01,041 --> 00:14:03,176 that kind of energy in his projects. 264 00:14:03,209 --> 00:14:05,545 Probably some of it was just natural to him to do. 265 00:14:05,578 --> 00:14:08,048 Some of it was probably also a little bit of marketing. 266 00:14:08,081 --> 00:14:10,617 This is what I would say about Lobsang's Buddhism 267 00:14:10,650 --> 00:14:12,318 and how it benefits him... 268 00:14:12,352 --> 00:14:15,955 When it provides and an opportunity for him, 269 00:14:16,056 --> 00:14:17,424 he makes the right choice. 270 00:14:17,457 --> 00:14:20,427 When it doesn't provide an opportunity for him, 271 00:14:20,460 --> 00:14:22,429 he can weaponize that Buddhism. 272 00:14:22,462 --> 00:14:25,365 "I need to follow my karma and let go and move on." 273 00:14:25,398 --> 00:14:26,933 He could switch back and forth 274 00:14:26,966 --> 00:14:30,470 from that dimension all day long. 275 00:14:30,503 --> 00:14:32,539 [ Laughing ] 276 00:14:32,572 --> 00:14:36,052 Narrator: But Lobsang's dedication to the discipline of non-attachment 277 00:14:36,076 --> 00:14:38,054 is about to be put the test. 278 00:14:38,078 --> 00:14:40,313 Agassi: Good luck! 279 00:14:40,347 --> 00:14:45,518 ♪♪ 280 00:14:45,552 --> 00:14:49,989 Kirkland, Washington is only 20 miles south of Everett, 281 00:14:50,090 --> 00:14:53,626 but in the real estate game, it's a world away. 282 00:14:53,660 --> 00:14:57,931 For his next venture, Dargey eyes this quiet, upscale town 283 00:14:57,964 --> 00:15:00,400 and a plot of prime real estate 284 00:15:00,433 --> 00:15:03,336 a stone's throw from Lake Washington. 285 00:15:03,370 --> 00:15:07,073 He commits to buying the property for $8.6 million 286 00:15:07,107 --> 00:15:10,443 and pitches another high-density residential project, 287 00:15:10,477 --> 00:15:13,113 fully outlined in his blueprints 288 00:15:13,146 --> 00:15:16,049 and striking promotional materials. 289 00:15:16,082 --> 00:15:18,385 But this time, he hits a wall, 290 00:15:18,418 --> 00:15:22,322 and learns a new American concept... N.I.M.B.Y, 291 00:15:22,355 --> 00:15:24,190 "Not In My Backyard." 292 00:15:24,224 --> 00:15:25,525 Developing in Kirkland 293 00:15:25,558 --> 00:15:28,037 is nowhere like developing in Everett. 294 00:15:28,061 --> 00:15:30,597 He was cramming a lot of units into the property, 295 00:15:30,630 --> 00:15:32,265 just like he would do in Everett, 296 00:15:32,298 --> 00:15:34,834 and that did not go over well with the community. 297 00:15:34,868 --> 00:15:38,171 They basically said no. 298 00:15:38,204 --> 00:15:40,840 Narrator: Dargey's Business Monk routine rings hollow 299 00:15:40,874 --> 00:15:43,610 with the toney residents of Kirkland. 300 00:15:43,643 --> 00:15:46,413 They are turned off by size of the project 301 00:15:46,446 --> 00:15:49,849 and the aggressive style of the builder. 302 00:15:49,883 --> 00:15:51,584 Agassi: He would stand up at meetings. 303 00:15:51,618 --> 00:15:55,064 They would voice concerns and he would bark at them and say, 304 00:15:55,088 --> 00:15:57,223 "You don't need to worry about that," 305 00:15:57,257 --> 00:15:59,592 versus addressing their concerns. 306 00:15:59,626 --> 00:16:01,428 If he would have courted them 307 00:16:01,461 --> 00:16:04,431 the same way he courts an investor, 308 00:16:04,464 --> 00:16:07,634 he probably could have resolved a lot of these concerns. 309 00:16:07,667 --> 00:16:13,015 But instead, he was a bull in a china shop. 310 00:16:13,039 --> 00:16:16,409 Narrator: Dargey locks horns with a vocal citizen's group, 311 00:16:16,443 --> 00:16:19,245 and his building permits are blocked. 312 00:16:19,279 --> 00:16:23,216 The conflict escalates and Lobsang digs in, 313 00:16:23,249 --> 00:16:27,587 deploying both lawyers and monks to the battleground. 314 00:16:27,620 --> 00:16:32,292 Agassi: Lawsuits, complaints, him flying in monks 315 00:16:32,325 --> 00:16:34,894 [ Monks chanting ] to unearth the demons in the earth 316 00:16:34,928 --> 00:16:37,330 so he could get his permits. 317 00:16:37,364 --> 00:16:41,501 It was a constant source of needing to come up with money. 318 00:16:41,534 --> 00:16:45,338 Zlab: So it was time and energy and expense 319 00:16:45,372 --> 00:16:49,342 that I think he would have probably not gone into 320 00:16:49,376 --> 00:16:51,544 had he known what he was getting himself into. 321 00:16:51,578 --> 00:16:56,058 However, once he was into it, there was no backing out. 322 00:16:56,082 --> 00:16:58,585 Narrator: Dargey's dreams are sinking in Kirkland, 323 00:16:58,618 --> 00:17:00,353 and he needs to come up with money 324 00:17:00,387 --> 00:17:03,089 to keep his enterprise afloat. 325 00:17:03,123 --> 00:17:07,160 In a strange twist of fate, he's about to get a lifeline 326 00:17:07,193 --> 00:17:10,530 from the country that once oppressed him. 327 00:17:10,563 --> 00:17:12,098 A record number of Chinese 328 00:17:12,132 --> 00:17:13,743 are looking to get into the United States, 329 00:17:13,767 --> 00:17:16,202 and they are willing to pay big money to make it happen. 330 00:17:16,236 --> 00:17:20,306 They're doing it through an investor immigrant visa program 331 00:17:20,340 --> 00:17:22,575 that's called the EB-5 program. 332 00:17:22,609 --> 00:17:25,478 Narrator: Dargey hears about an obscure government program 333 00:17:25,512 --> 00:17:27,647 called EB-5. 334 00:17:27,681 --> 00:17:30,517 Reporter: EB-5 is the technical name for the program, 335 00:17:30,550 --> 00:17:34,521 which was designed to trade job growth for U.S. citizenship. 336 00:17:34,554 --> 00:17:38,124 Narrator: Under EB-5, foreign nationals from countries 337 00:17:38,158 --> 00:17:41,194 all over the world can earn permanent residency 338 00:17:41,227 --> 00:17:46,232 or "green card" status for themselves and their families. 339 00:17:46,266 --> 00:17:49,736 To qualify, they must invest at least $500,000 340 00:17:49,769 --> 00:17:53,139 in a job-creating American venture. 341 00:17:53,173 --> 00:17:55,742 But the key is that that money actually be spent, 342 00:17:55,775 --> 00:17:58,611 all of it, on the job-creating enterprise. 343 00:17:58,645 --> 00:18:00,480 And so the fundamental requirement 344 00:18:00,513 --> 00:18:04,851 is that all $500,000 goes to create jobs. 345 00:18:04,884 --> 00:18:07,354 Narrator: Dargey's mind lights up. 346 00:18:07,387 --> 00:18:10,590 He knows that China is full of wealthy entrepreneurs 347 00:18:10,623 --> 00:18:13,560 who covet American residency. 348 00:18:13,593 --> 00:18:16,563 The global business of passport portfolios... 349 00:18:16,596 --> 00:18:18,732 This is where the wealthy get a portfolio passport... 350 00:18:18,765 --> 00:18:20,400 Is booming. 351 00:18:20,433 --> 00:18:22,411 But should we sell passports? We absolutely should! 352 00:18:22,435 --> 00:18:25,505 Investment is good. Creating jobs is good. 353 00:18:25,538 --> 00:18:29,609 America has set the table for Lobsang Dargey. 354 00:18:29,642 --> 00:18:31,511 He gets here to America and it's like, 355 00:18:31,544 --> 00:18:34,180 "Hey, man, everything's gravy after what I've been through." 356 00:18:34,214 --> 00:18:36,850 Narrator: And he's about to turn his old nemesis 357 00:18:36,883 --> 00:18:39,652 into the ultimate gravy train. 358 00:18:39,686 --> 00:18:42,389 Next on "American Greed"... 359 00:18:42,422 --> 00:18:45,625 Dargey puts a huckster spin on EB-5, 360 00:18:45,658 --> 00:18:48,528 calling it a "green card guarantee." 361 00:18:48,561 --> 00:18:50,830 What could possibly go wrong? 362 00:18:50,864 --> 00:18:54,668 Wilkinson: From the very first check that he got from an investor, 363 00:18:54,701 --> 00:18:57,504 he was essentially stealing from the project. 364 00:18:57,537 --> 00:19:02,208 ♪♪ 365 00:19:05,577 --> 00:19:13,577 ♪♪ 366 00:19:15,020 --> 00:19:19,525 Narrator: In August 2011, Lobsang Dargey is approved 367 00:19:19,558 --> 00:19:23,529 for a federal program called EB-5. 368 00:19:23,562 --> 00:19:26,665 It's a lifeline connecting him to millions of dollars 369 00:19:26,699 --> 00:19:30,936 from foreign investors eager to become American residents. 370 00:19:31,036 --> 00:19:33,772 These investors were not primarily drawn 371 00:19:33,806 --> 00:19:35,641 to invest to make money. 372 00:19:35,674 --> 00:19:38,077 The main motivation of immigrant investors in this 373 00:19:38,110 --> 00:19:39,778 is the green card. 374 00:19:39,812 --> 00:19:41,690 They want to be able to move to the United States. 375 00:19:41,714 --> 00:19:44,483 Narrator: Dargey lures EB-5 investors 376 00:19:44,516 --> 00:19:46,685 with glossy promotional materials 377 00:19:46,719 --> 00:19:49,822 for a huge project in Everett, Washington. 378 00:19:49,855 --> 00:19:52,033 He calls it the "farmer's market," 379 00:19:52,057 --> 00:19:54,035 an inviting mixed-use building 380 00:19:54,059 --> 00:19:58,063 of apartments, retail space, and a hotel. 381 00:19:58,097 --> 00:20:01,600 The estimated cost to build is $50 million, 382 00:20:01,633 --> 00:20:05,938 and Dargey plans to raise most of that from Chinese investors. 383 00:20:05,971 --> 00:20:07,506 He built the argument 384 00:20:07,539 --> 00:20:09,975 that he needed to go to China for a month. 385 00:20:10,009 --> 00:20:13,779 I would ask him how, "Who do you know in China?" 386 00:20:13,812 --> 00:20:16,148 This guy had three contacts in China. 387 00:20:16,181 --> 00:20:20,119 He dropped himself in China and built an empire. 388 00:20:20,152 --> 00:20:22,187 Narrator: Dargey gets the ball rolling in China 389 00:20:22,221 --> 00:20:26,091 by paying fees to Chinese migration agents 390 00:20:26,125 --> 00:20:29,194 who connect him to a steady stream of prospects, 391 00:20:29,228 --> 00:20:33,632 people with dreams of immigration just like his. 392 00:20:33,666 --> 00:20:35,100 He speaks Mandarin, 393 00:20:35,134 --> 00:20:37,836 so he can communicate directly with investors, 394 00:20:37,870 --> 00:20:39,147 and he got them very interested, 395 00:20:39,171 --> 00:20:42,508 because he had a great story to tell. 396 00:20:42,541 --> 00:20:46,278 Narrator: Federal prosecutors see things a little differently. 397 00:20:46,311 --> 00:20:49,848 We felt that Mr. Dargey used his immigration status 398 00:20:49,882 --> 00:20:52,818 as a tool to help him enable his fraud. 399 00:20:52,851 --> 00:20:55,788 And knowing that their dreams were similar to his dreams, 400 00:20:55,821 --> 00:20:59,091 he took advantage of that to make money for himself. 401 00:20:59,124 --> 00:21:01,894 We are really excited to build this... 402 00:21:01,927 --> 00:21:05,164 Narrator: Dargey's sales pitch is great, 403 00:21:05,197 --> 00:21:07,933 but it's riddled with false claims. 404 00:21:07,966 --> 00:21:10,769 He was offering a green card guarantee. 405 00:21:10,803 --> 00:21:13,172 What he was promising people in all different ways 406 00:21:13,205 --> 00:21:16,642 in his written materials is that if they invested with him, 407 00:21:16,675 --> 00:21:19,845 he would get them permanent residency in this country. 408 00:21:19,878 --> 00:21:21,547 And there's just no way that Mr. Dargey 409 00:21:21,580 --> 00:21:23,058 could have guaranteed a green card, 410 00:21:23,082 --> 00:21:26,118 because that is given by the U.S. government. 411 00:21:26,151 --> 00:21:28,654 Narrator: But the lure of Dargey's life story 412 00:21:28,687 --> 00:21:33,892 and his so-called green card guarantee is powerful. 413 00:21:33,926 --> 00:21:38,897 In March 2012, Dargey bags his first Chinese investor, 414 00:21:38,931 --> 00:21:43,535 and promptly begins playing fast and loose with their money. 415 00:21:43,569 --> 00:21:47,082 Days after receiving that very first check from an investor, 416 00:21:47,106 --> 00:21:49,008 he was spending the money not on the projects 417 00:21:49,108 --> 00:21:50,943 he was supposed to be spending them on, 418 00:21:50,976 --> 00:21:54,146 but on his own personal projects that were running out of money 419 00:21:54,179 --> 00:21:56,548 and that he was trying to salvage. 420 00:21:56,582 --> 00:21:58,751 Narrator: Dargey illegally diverts 421 00:21:58,784 --> 00:22:02,921 $306,000 of that first $500,000 investment 422 00:22:02,955 --> 00:22:04,690 to other uses, 423 00:22:04,723 --> 00:22:07,926 especially the loan surrounding his Kirkland property 424 00:22:07,960 --> 00:22:09,762 and his mounting legal bills, 425 00:22:09,795 --> 00:22:13,599 which now exceed a quarter million dollars. 426 00:22:13,632 --> 00:22:15,334 Arnold: We found pretty early on that 427 00:22:15,367 --> 00:22:17,045 Mr. Dargey's Kirkland project 428 00:22:17,069 --> 00:22:19,238 had created significant issues for him. 429 00:22:19,271 --> 00:22:22,641 We also saw him spending a lot of money on personal items, 430 00:22:22,675 --> 00:22:24,076 and so we had concerns, 431 00:22:24,109 --> 00:22:26,111 because there was a very significant risk 432 00:22:26,145 --> 00:22:29,081 that he was personally profiting from this fraud as well. 433 00:22:29,114 --> 00:22:31,784 Narrator: Lobsang Dargey has flipped the script 434 00:22:31,817 --> 00:22:33,919 on his life story. 435 00:22:33,952 --> 00:22:35,721 The country that once oppressed him 436 00:22:35,754 --> 00:22:39,224 is now bankrolling his American dream. 437 00:22:39,258 --> 00:22:42,961 Over the next six months, he raises $41 million 438 00:22:42,995 --> 00:22:45,731 from 82 Chinese investors, 439 00:22:45,764 --> 00:22:50,903 and an additional $3.7 million in development fees. 440 00:22:50,936 --> 00:22:52,771 And while most of the Chinese capital 441 00:22:52,805 --> 00:22:55,841 is actually going to build the farmer's market, 442 00:22:55,874 --> 00:23:01,880 in the EB-5 game it's got to be all or it's nothing. 443 00:23:01,914 --> 00:23:03,792 So the main requirement is that all of the money 444 00:23:03,816 --> 00:23:05,684 had to stay in the project, 445 00:23:05,718 --> 00:23:08,654 so anytime that the promoter, like Mr. Dargey in this case, 446 00:23:08,687 --> 00:23:11,924 would divert that money to either his own projects 447 00:23:11,957 --> 00:23:14,035 or his own personal spending, 448 00:23:14,059 --> 00:23:17,796 that would mean that the capital contribution was misused 449 00:23:17,830 --> 00:23:19,798 and would have serious negative consequences 450 00:23:19,832 --> 00:23:23,168 on the immigrant investor's ability to get a green card. 451 00:23:23,202 --> 00:23:25,671 Narrator: As investments pour in, 452 00:23:25,704 --> 00:23:29,708 Dargey's misuse of the money multiplies. 453 00:23:29,742 --> 00:23:34,646 He even uses EB-5 funds to purchase a $2.5 million mansion 454 00:23:34,680 --> 00:23:38,250 in Bellevue for himself and his family. 455 00:23:38,283 --> 00:23:41,153 Agassi: You helping Daddy cut the grass? 456 00:23:41,186 --> 00:23:44,356 At the time, his wife Tami has no reason to doubt 457 00:23:44,390 --> 00:23:48,727 that Lobsang is anything other than an all-American husband, 458 00:23:48,761 --> 00:23:50,896 father, and provider. 459 00:23:50,929 --> 00:23:53,298 Say, "Thank you, Daddy." 460 00:23:53,332 --> 00:23:56,335 Agassi: I didn't care how much he was raising. 461 00:23:56,368 --> 00:24:00,072 Buildings were being made. He was doing his thing. 462 00:24:00,105 --> 00:24:02,241 When you ask if my lifestyle improved, 463 00:24:02,274 --> 00:24:04,019 my lifestyle improved for the fact 464 00:24:04,043 --> 00:24:07,046 that I didn't have to worry about certain camps 465 00:24:07,079 --> 00:24:08,714 I wanted to put my kids in. 466 00:24:08,747 --> 00:24:11,026 But was I walking around in designer clothes? 467 00:24:11,050 --> 00:24:15,754 No. He was. Not me. I was a mom. 468 00:24:15,788 --> 00:24:19,291 Narrator: But Dargey is now providing for his own family 469 00:24:19,324 --> 00:24:23,328 by putting his investors and their loved ones at risk. 470 00:24:23,362 --> 00:24:25,040 82 investor families 471 00:24:25,064 --> 00:24:27,866 could have their pending green cards cancelled 472 00:24:27,900 --> 00:24:30,502 if Dargey's fraud is discovered. 473 00:24:30,536 --> 00:24:33,772 These investors put their trust in Mr. Dargey 474 00:24:33,806 --> 00:24:35,274 to live the American dream. 475 00:24:35,307 --> 00:24:38,711 They had often sold all of their assets in China, 476 00:24:38,744 --> 00:24:41,113 had moved to the U.S., had put their children in school, 477 00:24:41,146 --> 00:24:44,983 had purchased a house here, and were really relying upon him 478 00:24:45,084 --> 00:24:47,062 to do what he had promised that he was going to do. 479 00:24:47,086 --> 00:24:49,488 And so he clearly made the deliberate decision 480 00:24:49,521 --> 00:24:51,323 not to follow through with that promise, 481 00:24:51,357 --> 00:24:54,860 but to instead put the money in places that benefited him. 482 00:24:54,893 --> 00:24:58,497 Narrator: To say that the stakes are high is an understatement, 483 00:24:58,530 --> 00:25:02,067 and they are about to triple in scope. 484 00:25:02,101 --> 00:25:04,069 Next on "American Greed," 485 00:25:04,103 --> 00:25:06,538 Lobsang Dargey's business and his fraud 486 00:25:06,572 --> 00:25:09,742 grow to new heights. 487 00:25:09,775 --> 00:25:12,211 Agassi: "Honey, I think I have to buy a Bentley for clients." 488 00:25:12,244 --> 00:25:14,413 The next day, there's a Bentley in my driveway. 489 00:25:14,446 --> 00:25:20,052 ♪♪ 490 00:25:23,600 --> 00:25:31,600 ♪♪ 491 00:25:33,410 --> 00:25:35,545 Narrator: Lobsang Dargey is having no trouble 492 00:25:35,579 --> 00:25:36,947 recruiting investors 493 00:25:37,047 --> 00:25:39,549 for his first EB-5 funded real estate project 494 00:25:39,583 --> 00:25:42,486 called the Farmer's Market. 495 00:25:42,519 --> 00:25:45,889 So he decides, why not launch a second? 496 00:25:45,922 --> 00:25:48,759 Zlab: Lobsang brought up the skyscraper subject... 497 00:25:48,792 --> 00:25:52,562 We were well into building the farmer's market 498 00:25:52,596 --> 00:25:55,732 and then the thought of like, "Hey, let's do a tower." 499 00:25:55,766 --> 00:25:57,901 [ Laughs ] 500 00:25:57,934 --> 00:26:00,771 Narrator: Dargey's promotional materials for investors 501 00:26:00,804 --> 00:26:04,808 showcase his plans to build a 41-story skyscraper 502 00:26:04,841 --> 00:26:06,877 in downtown Seattle. 503 00:26:06,910 --> 00:26:09,813 It's also named after Potala Palace. 504 00:26:09,846 --> 00:26:12,916 He calls it Potala Tower. 505 00:26:13,016 --> 00:26:17,921 It's an undertaking that is both hugely ambitious and risky. 506 00:26:18,021 --> 00:26:19,890 It's just a much, more complicated, 507 00:26:19,923 --> 00:26:23,427 high-pressure situation, and I warned Lobsang, just like, 508 00:26:23,460 --> 00:26:26,005 "Hey, we're going from minor leagues to major leagues here. 509 00:26:26,029 --> 00:26:28,932 This is completely a step up, 510 00:26:29,032 --> 00:26:32,436 and um, we're not ready for it yet." 511 00:26:32,469 --> 00:26:37,016 Narrator: The tower is budgeted at $190 million. 512 00:26:37,040 --> 00:26:38,775 Dargey plans to fund the project 513 00:26:38,809 --> 00:26:40,911 mainly through Chinese investors, 514 00:26:40,944 --> 00:26:44,781 while promising to invest $30 million of his own capital. 515 00:26:44,815 --> 00:26:46,450 To attract investors, 516 00:26:46,483 --> 00:26:50,620 Dargey repeats his Farmer's Market EB-5 playbook 517 00:26:50,654 --> 00:26:52,889 with another round of trips to China, 518 00:26:52,923 --> 00:26:56,593 and he's traveling in rarified air. 519 00:26:56,626 --> 00:26:59,096 Zlab: EB-5 investors were not middle class Chinese. 520 00:26:59,129 --> 00:27:01,431 These are the upper class of China. 521 00:27:01,465 --> 00:27:04,835 These people are entrepreneurs, they're business owners, 522 00:27:04,868 --> 00:27:06,303 they're millionaires. 523 00:27:06,336 --> 00:27:08,005 They expect nice things. 524 00:27:08,038 --> 00:27:10,307 They don't go out to a crummy restaurant. 525 00:27:10,340 --> 00:27:11,742 They don't expect to get picked up 526 00:27:11,775 --> 00:27:14,988 in a smelly pickup truck from a construction site. 527 00:27:15,012 --> 00:27:17,814 Narrator: If Dargey is going to play with this crowd, 528 00:27:17,848 --> 00:27:20,317 he'll have to pay. 529 00:27:20,350 --> 00:27:23,820 He illegally pulls funds out of the EB-5 accounts 530 00:27:23,854 --> 00:27:27,624 to spend lavishly on his investors-to-be. 531 00:27:27,658 --> 00:27:31,495 He courts them with junkets to Las Vegas casinos, 532 00:27:31,528 --> 00:27:34,731 elaborate dinners, and the purchase of a Bentley 533 00:27:34,765 --> 00:27:37,134 for airport pickups and tours. 534 00:27:37,167 --> 00:27:38,835 Agassi: And he said, 535 00:27:38,869 --> 00:27:41,038 "Honey, I think I have to buy a Bentley for clients. 536 00:27:41,071 --> 00:27:43,740 I can't send my driver in the Range Rover." 537 00:27:43,774 --> 00:27:45,542 "Really, you're thinking about that?" 538 00:27:45,575 --> 00:27:47,477 "Yeah." [ Scoffs ] 539 00:27:47,511 --> 00:27:50,023 And the next day, there's a Bentley in my driveway. 540 00:27:50,047 --> 00:27:51,581 Narrator: This former monk 541 00:27:51,615 --> 00:27:54,051 who once didn't even own a toothbrush 542 00:27:54,084 --> 00:27:58,955 is now closing deals in his chauffeured $200,000 car. 543 00:27:59,056 --> 00:28:00,524 That was not a legitimate excuse 544 00:28:00,557 --> 00:28:01,968 to be spending the money in that way. 545 00:28:01,992 --> 00:28:03,527 And so when he chose to take money 546 00:28:03,560 --> 00:28:05,729 that was supposed to go to create jobs 547 00:28:05,762 --> 00:28:07,764 and build these projects and spend these 548 00:28:07,798 --> 00:28:10,434 on his own promotional business expenses 549 00:28:10,467 --> 00:28:12,369 to try and get new investors, 550 00:28:12,402 --> 00:28:15,739 he was essentially stealing from the project. 551 00:28:15,772 --> 00:28:21,545 Narrator: Dargey raises $86 million from 171 Chinese investors. 552 00:28:21,578 --> 00:28:25,449 But his promised contribution of $30 million 553 00:28:25,482 --> 00:28:28,485 goes unfulfilled. 554 00:28:28,518 --> 00:28:33,724 In August 2014, Dargey holds a ceremonial groundbreaking 555 00:28:33,757 --> 00:28:35,525 for the Potala Tower. 556 00:28:35,559 --> 00:28:37,594 [ Applause ] 557 00:28:37,627 --> 00:28:40,106 Reporter: When crews broke ground on this Belltown construction site, 558 00:28:40,130 --> 00:28:42,766 there was so much pomp and circumstance, 559 00:28:42,799 --> 00:28:47,137 even the mayor and actor Tom Skerritt were there. 560 00:28:47,170 --> 00:28:50,774 Narrator: Far removed from the smoke of yak dung fires, 561 00:28:50,807 --> 00:28:54,020 Lobsang Dargey, builder of a skyscraper, 562 00:28:54,044 --> 00:28:55,846 is rubbing elbows with players 563 00:28:55,879 --> 00:28:59,816 at the highest levels of American power. 564 00:28:59,850 --> 00:29:02,886 But despite all his success in America, 565 00:29:02,986 --> 00:29:04,788 he is still restless, 566 00:29:04,821 --> 00:29:09,660 haunted by nightmares from his tormented past in Tibet. 567 00:29:09,693 --> 00:29:13,096 Agassi: You're seeing somebody lose it in the middle of the night. 568 00:29:13,130 --> 00:29:16,066 And I had no idea what Lobsang was going through 569 00:29:16,099 --> 00:29:17,634 or what he was struggling with. 570 00:29:17,668 --> 00:29:19,979 It wasn't until many years later 571 00:29:20,003 --> 00:29:24,474 that he actually acknowledged he's struggling with PTSD. 572 00:29:24,508 --> 00:29:27,711 Narrator: Dargey's nightmares are well-founded. 573 00:29:27,744 --> 00:29:30,213 By now, he's diverted nearly $17 million 574 00:29:30,247 --> 00:29:33,617 from the EB-5 accounts to other projects, 575 00:29:33,650 --> 00:29:36,253 along with millions more for perks 576 00:29:36,286 --> 00:29:42,059 like his mansion, his limousine, and entertaining investors. 577 00:29:42,092 --> 00:29:44,127 On the shores of Lake Washington, 578 00:29:44,161 --> 00:29:47,030 he's lost the Kirkland lawsuit. 579 00:29:47,064 --> 00:29:52,469 The chanting monks and crippling legal fees were all for naught. 580 00:29:52,502 --> 00:29:56,640 And while he's come so far and flown so high, 581 00:29:56,673 --> 00:29:59,142 he's about to crash. 582 00:29:59,176 --> 00:30:01,712 Up next on "American Greed," 583 00:30:01,745 --> 00:30:05,649 Agassi: The FBI knocks on our door and our world blew up, 584 00:30:05,682 --> 00:30:08,585 'cause I needed to know if I was married to a criminal. 585 00:30:08,618 --> 00:30:10,120 Narrator: Want more "Greed"? 586 00:30:10,153 --> 00:30:12,990 Follow us on Instagram, connect on Facebook, 587 00:30:13,023 --> 00:30:15,125 and listen to the American Greed podcast 588 00:30:15,158 --> 00:30:17,494 wherever you get your podcasts. 589 00:30:17,527 --> 00:30:19,563 We'll be right back. 590 00:30:23,967 --> 00:30:31,967 ♪♪ 591 00:30:33,810 --> 00:30:37,681 Narrator: In the spring of 2015, developer Lobsang Dargey 592 00:30:37,714 --> 00:30:40,784 is in the midst of two massive projects 593 00:30:40,817 --> 00:30:44,988 under the federal government's EB-5 program. 594 00:30:45,022 --> 00:30:49,159 Chinese nationals have invested more than $120 million 595 00:30:49,192 --> 00:30:52,996 in the projects in order to gain U.S. residency. 596 00:30:53,030 --> 00:30:55,932 This man was working all angles 597 00:30:55,966 --> 00:30:58,035 for anyone who could benefit him. 598 00:31:03,040 --> 00:31:04,675 Narrator: But the high-flying developer 599 00:31:04,708 --> 00:31:08,679 is beginning to pique some suspicion in Seattle. 600 00:31:08,712 --> 00:31:11,281 Acting on a confidential tip, federal authorities 601 00:31:11,315 --> 00:31:14,117 get a search warrant for Dargey's bank records. 602 00:31:14,151 --> 00:31:17,521 They quickly find proof that he's raiding the EB-5 accounts 603 00:31:17,554 --> 00:31:20,857 for unauthorized, illegal spending. 604 00:31:20,891 --> 00:31:22,926 So as we started to look through the bank records, 605 00:31:22,959 --> 00:31:25,195 we noticed that there were a large number 606 00:31:25,228 --> 00:31:28,899 of cash withdrawals at casinos, which was a red flag, 607 00:31:28,932 --> 00:31:30,834 because that's not what you typically expect 608 00:31:30,867 --> 00:31:33,537 to see in a business account. 609 00:31:33,570 --> 00:31:36,073 And then we also saw that money was being diverted 610 00:31:36,106 --> 00:31:39,710 for the personal purchase of Mr. Dargey's house. 611 00:31:39,743 --> 00:31:42,212 Narrator: To fill shortfalls in his EB-5 accounts, 612 00:31:42,245 --> 00:31:44,314 Dargey falsifies a bank statement 613 00:31:44,348 --> 00:31:48,285 to qualify for a $25 million loan. 614 00:31:48,318 --> 00:31:50,821 He needed to show that he had a certain amount of liquidity. 615 00:31:50,854 --> 00:31:54,725 And to do that, he doctored an HSBC bank statement 616 00:31:54,758 --> 00:31:57,070 to the tune of over $9 million, 617 00:31:57,094 --> 00:32:00,897 when in reality, the account had about $440,000 in it. 618 00:32:00,931 --> 00:32:02,366 And there's really just... 619 00:32:02,399 --> 00:32:06,012 There's no way to defend falsifying a bank statement. 620 00:32:06,036 --> 00:32:09,639 Narrator: By now, Dargey's finances are in freefall 621 00:32:09,673 --> 00:32:12,242 and all the stress is finally catching up with him. 622 00:32:12,275 --> 00:32:13,777 [ Phone dialing ] 623 00:32:13,810 --> 00:32:16,613 Agassi: I saw mental decline, big time. 624 00:32:16,647 --> 00:32:18,291 [ Indistinct phone conversation ] He was so chaotic. 625 00:32:18,315 --> 00:32:19,950 There was a time when I 626 00:32:20,050 --> 00:32:22,619 only spoke to him first thing in the morning. 627 00:32:22,653 --> 00:32:26,390 The rest of the day was me hanging up on him. 628 00:32:26,423 --> 00:32:29,593 "Call me back when you're coherent." Click. 629 00:32:29,626 --> 00:32:31,762 [ Dial tone ] 630 00:32:31,795 --> 00:32:35,899 ♪♪ 631 00:32:35,932 --> 00:32:40,237 Narrator: In the dawn's early light of August 25th, 2015, 632 00:32:40,270 --> 00:32:42,172 Lobsang Dargey's American dream 633 00:32:42,205 --> 00:32:45,108 officially becomes a waking nightmare 634 00:32:45,142 --> 00:32:48,278 when federal investigators arrive at his doorstep. 635 00:32:48,312 --> 00:32:50,314 Agassi: So Lobsang's sleeping. 636 00:32:50,347 --> 00:32:55,919 I'm up early with the twins, and the FBI knocks on our door. 637 00:32:55,952 --> 00:32:58,188 Mr. Dargey came out in his underwear. 638 00:32:58,221 --> 00:32:59,923 We told him to put some clothes on, 639 00:33:00,023 --> 00:33:02,793 and then we sat down and tried to talk to Mr. Dargey. 640 00:33:02,826 --> 00:33:05,095 Agassi: And I watched him defend himself for 641 00:33:05,128 --> 00:33:08,007 maybe 45 minutes, an hour, 642 00:33:08,031 --> 00:33:10,400 'cause I needed to know if I was married to a criminal! 643 00:33:10,434 --> 00:33:11,935 Moran: He said he was allowed 644 00:33:12,035 --> 00:33:14,304 to take all this money as developer fees, 645 00:33:14,338 --> 00:33:18,342 the loans between the entities with EB-5 money was allowed. 646 00:33:18,375 --> 00:33:20,944 Everything was disclosed. 647 00:33:21,044 --> 00:33:24,848 He literally said to her, "I'm happy to work with you. 648 00:33:24,881 --> 00:33:27,851 Come back on Friday after my investors leave, 649 00:33:27,884 --> 00:33:29,453 and I will show you everything." 650 00:33:29,486 --> 00:33:31,455 And she said, "That's not gonna happen. 651 00:33:31,488 --> 00:33:33,190 You need a criminal attorney." 652 00:33:34,491 --> 00:33:36,326 Our world blew up. 653 00:33:36,360 --> 00:33:39,196 Narrator: That same day, investigators have a court order 654 00:33:39,229 --> 00:33:41,865 to freeze Dargey's assets, 655 00:33:41,898 --> 00:33:46,336 and the FBI executes search warrants at his two offices. 656 00:33:46,370 --> 00:33:49,806 Men and women in FBI windbreakers everywhere, 657 00:33:49,840 --> 00:33:52,409 pulling computers off desks and shoving stuff in boxes. 658 00:33:52,442 --> 00:33:54,244 It was very scary. 659 00:33:54,277 --> 00:33:58,949 There was probably 15 FBI agents looking at you, 660 00:33:58,982 --> 00:34:01,151 wondering what you did wrong. 661 00:34:01,184 --> 00:34:02,886 So I just kind of like, stand in a corner 662 00:34:02,919 --> 00:34:04,130 with some of the other consultants 663 00:34:04,154 --> 00:34:05,422 that were sharing that space 664 00:34:05,455 --> 00:34:08,859 They're like, "What's going on here?" 665 00:34:08,892 --> 00:34:12,863 Narrator: Dargey's employees are rattled by the FBI searches, 666 00:34:12,896 --> 00:34:17,901 but investigators conclude that he alone orchestrated the fraud. 667 00:34:17,934 --> 00:34:21,872 Moran: Mr. Dargey was the only person who knew the entire story. 668 00:34:21,905 --> 00:34:25,275 He kept most employees in their specific areas, 669 00:34:25,308 --> 00:34:27,210 and they didn't know the whole picture. 670 00:34:27,244 --> 00:34:31,248 Reporter: At issue is the man who owns this Bellevue house. 671 00:34:31,281 --> 00:34:32,916 The SEC has filed a complaint 672 00:34:32,949 --> 00:34:34,751 and is seeking a restraining order 673 00:34:34,785 --> 00:34:38,221 alleging Dargey bilked 250 Chinese investors 674 00:34:38,255 --> 00:34:40,824 out of millions of dollars. 675 00:34:40,857 --> 00:34:42,326 Narrator: With his assets frozen, 676 00:34:42,359 --> 00:34:46,496 all of Dargey's company activities abruptly cease. 677 00:34:46,530 --> 00:34:48,041 Dozens of construction 678 00:34:48,065 --> 00:34:51,735 and development personnel drop everything. 679 00:34:51,768 --> 00:34:54,905 Reporter: Today we found just three workers on site 680 00:34:54,938 --> 00:34:59,910 after legal papers have put the 41-story Potala Tower in limbo. 681 00:35:00,010 --> 00:35:01,378 Boom, they just shut it down. 682 00:35:01,411 --> 00:35:03,280 All the equipment on site was just frozen. 683 00:35:03,313 --> 00:35:05,215 There were leases on that equipment. 684 00:35:05,248 --> 00:35:07,060 Erickson: I was in charge of paying every single bill 685 00:35:07,084 --> 00:35:08,852 for all the buildings. 686 00:35:08,885 --> 00:35:11,188 I couldn't pay anybody. I couldn't pay payroll. 687 00:35:11,221 --> 00:35:16,059 I couldn't pay payroll taxes. I couldn't do anything. 688 00:35:16,093 --> 00:35:18,195 Narrator: And even worse for the investors, 689 00:35:18,228 --> 00:35:21,007 the EB-5 status of both the Farmer's Market 690 00:35:21,031 --> 00:35:24,568 and Tower projects are revoked. 691 00:35:24,601 --> 00:35:27,437 For 253 investor families, 692 00:35:27,471 --> 00:35:30,507 the dream of permanent American residency 693 00:35:30,540 --> 00:35:34,077 is suddenly in extreme peril. 694 00:35:34,111 --> 00:35:37,848 There was a significant fear from each of the investors 695 00:35:37,881 --> 00:35:40,083 they would be asked to leave the country immediately. 696 00:35:40,117 --> 00:35:42,152 They would be deported. 697 00:35:42,185 --> 00:35:45,188 Narrator: Investigators total up the loss to investors 698 00:35:45,222 --> 00:35:49,226 at a whopping $24 million. 699 00:35:49,259 --> 00:35:52,963 Four months later, Dargey is under extreme duress. 700 00:35:53,063 --> 00:35:55,298 He suffers a violent nervous breakdown 701 00:35:55,332 --> 00:35:59,403 and attempts to ingest a pile of pills. 702 00:35:59,436 --> 00:36:02,472 Agassi: He was sitting on the couch, starting to rock, 703 00:36:02,506 --> 00:36:05,042 felt his whole-body itching. 704 00:36:05,075 --> 00:36:08,178 "Hold me, hold me, hold me." He's rocking. He's rocking. 705 00:36:08,211 --> 00:36:11,181 Eyes glossed over like a zombie. 706 00:36:11,214 --> 00:36:13,884 The next thing I knew, he walked back to the bedroom 707 00:36:13,917 --> 00:36:16,887 and just started downing pills. 708 00:36:16,920 --> 00:36:18,255 [ Police radio chatter ] 709 00:36:18,288 --> 00:36:21,058 I called 911 and he got put in the cop car 710 00:36:21,091 --> 00:36:23,493 and he was hallucinating. 711 00:36:23,527 --> 00:36:25,829 He thought he was on his way back to China, 712 00:36:25,862 --> 00:36:28,131 that he was going to prison in China. 713 00:36:28,165 --> 00:36:32,336 He got into the psych ward. He saw things shooting at him. 714 00:36:32,369 --> 00:36:36,340 He was gone. He was mentally gone. 715 00:36:36,373 --> 00:36:37,507 Dargey: No camera. 716 00:36:37,541 --> 00:36:39,476 Narrator: Next on "American Greed," 717 00:36:39,509 --> 00:36:43,413 the price of Dargey's fraud becomes personal 718 00:36:43,447 --> 00:36:46,550 If I didn't have family to help me and support me, 719 00:36:46,583 --> 00:36:48,285 we could've been homeless. 720 00:36:48,318 --> 00:36:53,290 ♪♪ 721 00:36:56,593 --> 00:37:04,593 ♪♪ 722 00:37:05,602 --> 00:37:10,707 Narrator: After a severe mental breakdown and weeks in psychiatric care, 723 00:37:10,741 --> 00:37:15,178 Seattle developer Lobsang Dargey returns to relative health, 724 00:37:15,212 --> 00:37:16,513 but he still has to face 725 00:37:16,546 --> 00:37:20,384 the magnitude of his business crimes. 726 00:37:20,417 --> 00:37:23,086 I didn't meet Lobsang before the SEC 727 00:37:23,120 --> 00:37:25,389 came knocking at his door with the FBI. 728 00:37:25,422 --> 00:37:29,393 I'm sure that prior to that day, he was a force of nature. 729 00:37:29,426 --> 00:37:32,763 The Lobsang that I met was more reserved 730 00:37:32,796 --> 00:37:35,699 and in many, respects defeated. 731 00:37:35,732 --> 00:37:38,435 Narrator: Bradley Sher led an effort to take over 732 00:37:38,468 --> 00:37:41,304 development of Dargey's EB-5 projects 733 00:37:41,338 --> 00:37:44,474 and save them from total collapse. 734 00:37:44,508 --> 00:37:46,643 To help cover the $24 million dollar loss 735 00:37:46,677 --> 00:37:48,812 he's foisted on his investors, 736 00:37:48,845 --> 00:37:51,815 Dargey surrenders his majority equity stake 737 00:37:51,848 --> 00:37:56,153 in both the Farmer's Market and the Tower projects. 738 00:37:56,186 --> 00:37:57,654 He said his mission now 739 00:37:57,688 --> 00:38:00,324 is not to make any money out of the project, 740 00:38:00,357 --> 00:38:04,161 but to make sure that the EB-5 investors were repaid 741 00:38:04,194 --> 00:38:05,796 and that they get their green cards. 742 00:38:05,829 --> 00:38:07,197 Dargey: No camera! 743 00:38:07,230 --> 00:38:09,399 Reporter: Lobsang Dargey refusing to talk 744 00:38:09,433 --> 00:38:11,568 as he left federal court. 745 00:38:11,601 --> 00:38:14,838 He had just agreed with the U.S. attorney to plead guilty. 746 00:38:14,871 --> 00:38:18,608 Narrator: Although he still claims ignorance of his wrongdoing, 747 00:38:18,642 --> 00:38:22,245 Dargey pleads guilty to charges of wire fraud 748 00:38:22,279 --> 00:38:25,182 and lying to the U.S. government. 749 00:38:25,215 --> 00:38:28,852 While prosecutors seek a prison sentence of 10 years, 750 00:38:28,885 --> 00:38:30,787 Dargey's family floods the judge 751 00:38:30,821 --> 00:38:33,724 with more than 70 letters of support 752 00:38:33,757 --> 00:38:39,796 from his friends, contractors, and Tibetans all seeking mercy. 753 00:38:39,830 --> 00:38:42,532 Lobsang's former vice president of construction, 754 00:38:42,566 --> 00:38:46,269 Joe Zlab, submits one of those letters. 755 00:38:46,303 --> 00:38:49,573 I thought that there was kind of an injustice being done to him. 756 00:38:49,606 --> 00:38:53,110 I believed that if he had been warned, 757 00:38:53,143 --> 00:38:54,887 you know, with a strongly worded letter from the SEC, 758 00:38:54,911 --> 00:38:56,446 "Hey, cut out what you're doing," 759 00:38:56,480 --> 00:38:57,814 he would have cleaned up his act. 760 00:38:57,848 --> 00:38:59,816 People had accused him of running a Ponzi scheme 761 00:38:59,850 --> 00:39:01,485 and it was like, no. 762 00:39:01,518 --> 00:39:02,695 He wasn't running a Ponzi scheme. 763 00:39:02,719 --> 00:39:04,521 He was building buildings. 764 00:39:04,554 --> 00:39:07,324 Narrator: Prosecutors counter Dargey's letters of support 765 00:39:07,357 --> 00:39:11,595 with letters of their own from jilted Chinese investors 766 00:39:11,628 --> 00:39:14,631 who feel betrayed by Dargey's fraud. 767 00:39:14,665 --> 00:39:16,800 Many of these were people who had sold their homes, 768 00:39:16,833 --> 00:39:18,568 taken their kids out of school 769 00:39:18,602 --> 00:39:21,438 in preparation to move to the United States. 770 00:39:21,471 --> 00:39:23,907 Many of them did move to the United States, 771 00:39:24,007 --> 00:39:26,810 and then they received notices from the government saying, 772 00:39:26,843 --> 00:39:28,645 "Your money was spent improperly, 773 00:39:28,679 --> 00:39:32,716 and so we're planning to cancel your application." 774 00:39:32,749 --> 00:39:35,252 Narrator: On August 4, 2017, 775 00:39:35,285 --> 00:39:38,689 Judge Robert Lasnik takes pity on Dargey. 776 00:39:38,722 --> 00:39:42,359 Instead of 10 years, he gets 4. 777 00:39:42,392 --> 00:39:46,897 So he goes off to prison and I'm left with 2-year-old twins 778 00:39:46,930 --> 00:39:51,301 and a 10-year-old, living off the generosity of my brother. 779 00:39:51,335 --> 00:39:54,771 Narrator: Tami's brother, former tennis champion Andre Agassi, 780 00:39:54,805 --> 00:39:57,841 keeps the family afloat. 781 00:39:57,874 --> 00:40:00,944 And while in prison, Lobsang convinces Tami 782 00:40:00,978 --> 00:40:04,214 that divorce is necessary to shield her 783 00:40:04,247 --> 00:40:08,518 and their children from his $24 million restitution. 784 00:40:08,552 --> 00:40:10,754 Agassi: And he said, "We have to get divorced 785 00:40:10,787 --> 00:40:12,589 to protect you financially. 786 00:40:12,622 --> 00:40:13,957 We will go through this together, 787 00:40:13,991 --> 00:40:15,759 but I don't want you to worry. 788 00:40:15,792 --> 00:40:19,730 I know how to make money. I will pay back your family." 789 00:40:19,763 --> 00:40:23,533 Narrator: While Lobsang does time, his former EB-5 projects 790 00:40:23,567 --> 00:40:29,740 are completed by new developers and their EB-5 status restored. 791 00:40:29,773 --> 00:40:32,209 As for the Chinese investors, 792 00:40:32,242 --> 00:40:34,711 the vast majority are being made whole, 793 00:40:34,745 --> 00:40:39,616 with their investments recouped and green cards awarded. 794 00:40:39,650 --> 00:40:42,919 The story would appear to be on course for a happy ending 795 00:40:42,953 --> 00:40:47,591 when Lobsang earns an early release from custody in 2020. 796 00:40:47,624 --> 00:40:51,995 But soon after he's in street clothes, another shocker. 797 00:40:52,029 --> 00:40:55,899 Come to find out the moment our divorce was final, 798 00:40:55,932 --> 00:40:58,802 this guy secretly gets married. 799 00:40:58,835 --> 00:41:02,539 Narrator: Turns out that divorce wasn't just to protect Tami. 800 00:41:02,572 --> 00:41:08,278 It also freed him up to secretly marry a wealthy Chinese woman. 801 00:41:08,312 --> 00:41:09,946 Agassi: It was diabolical. 802 00:41:10,047 --> 00:41:13,817 Had I known what this guy was capable of or what he was doing, 803 00:41:13,850 --> 00:41:15,686 I wouldn't have been visiting him. 804 00:41:15,719 --> 00:41:18,031 I wouldn't have paid his legal fees. 805 00:41:18,055 --> 00:41:20,457 I wouldn't have done any of this. 806 00:41:20,490 --> 00:41:22,859 Narrator: Lobsang Dargey came from nothing 807 00:41:22,893 --> 00:41:26,697 and rose to extraordinary heights of success. 808 00:41:26,730 --> 00:41:31,601 Wilkinson: It was tragic that someone who had come from difficult origins 809 00:41:31,635 --> 00:41:34,504 and understood the importance of coming to this country 810 00:41:34,538 --> 00:41:36,773 and getting citizenship and what that can mean, 811 00:41:36,807 --> 00:41:39,543 that he sort of turned that on his head and exploited that. 812 00:41:39,576 --> 00:41:41,645 And when one of his projects hit a snag, 813 00:41:41,678 --> 00:41:44,948 he just decided to defraud all these immigrant investors 814 00:41:44,982 --> 00:41:47,651 who had placed not just their money in his hands, 815 00:41:47,684 --> 00:41:50,454 but in fact, their whole future. 816 00:41:50,487 --> 00:41:53,523 Agassi: No one invested more in Lobsang Dargey 817 00:41:53,557 --> 00:41:54,992 than his wife Tami. 818 00:41:55,092 --> 00:41:57,928 She gave him 16 years of her life 819 00:41:57,961 --> 00:42:01,732 and lost her assets defending him in court. 820 00:42:01,765 --> 00:42:05,736 And now she believes that he has taken all he can from her, 821 00:42:05,769 --> 00:42:10,016 and he is moving on in more ways than one. 822 00:42:10,040 --> 00:42:13,610 So Lobsang has told me he doesn't like this country. 823 00:42:13,644 --> 00:42:16,847 He never should have left Tibet and he belongs back in Tibet. 824 00:42:16,880 --> 00:42:18,882 He's told other people I know 825 00:42:18,915 --> 00:42:22,719 he wants to go back to China and do big business in China, 826 00:42:22,753 --> 00:42:25,722 and I believe firmly that's what he's planning. 827 00:42:25,756 --> 00:42:29,559 He's actually far more comfortable moving forward 828 00:42:29,593 --> 00:42:31,528 and looking forward. 829 00:42:31,561 --> 00:42:34,498 "I need to follow my karma and let go and move on." 830 00:42:34,531 --> 00:42:39,803 Which means good luck to me and the kids. 831 00:42:39,836 --> 00:42:42,072 Narrator: For now, Lobsang and his new wife 832 00:42:42,105 --> 00:42:44,675 remain in the Seattle area. 833 00:42:44,708 --> 00:42:48,378 Tami won't be surprised if the restless Seattle monk 834 00:42:48,412 --> 00:42:51,057 detaches from America and vanishes 835 00:42:51,081 --> 00:42:56,062 into the same mountain mist from which he came. 836 00:42:56,086 --> 00:42:59,890 Captions by VITAC... 837 00:42:59,923 --> 00:43:07,923 ♪♪