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GreenTech files for bankruptcy

A company founded by former Virginia Gov. Terry McAuliffe has filed for bankruptcy, citing negative press and lawsuits by investors who call it a “scam perpetrated by savvy and politically connected operatives” to exploit overseas investors.

The Richmond Times-Dispatch reports that the bankruptcy filing by the electric car company cites $7.5 million won by 12 investors and pending lawsuits. It says GreenTech Automotive raised almost $142 million from investors from 2009 to 2013 as part of a visa program that offered immigrant investors permanent residency, and says investors were warned the status wasn’t guaranteed.

» READ MORE: Nearly 8 years ago, the MBJ was dubious of where GreenTech was going

It also says Watchdog.org articles prompted federal investigations and negative attention. GreenTech’s 2013 $85 million lawsuit against Watchdog.org was dismissed.

McAuliffe resigned from GreenTech in 2012, but featured the company prominently in his 2013 race.

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