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Judges Reject Fraud Case Against McAuliffe But Give Him 'No Laurels'

Terry McAuliffe at Campaign kickoff
Terry McAuliffe at Campaign kickoff

A U.S. Appeals Court dealt a blow on Wednesday to Chinese investors who say they were deceived by former Gov. Terry McAuliffe in a failed electric car venture. But they didn’t give McAuliffe and his high-profile business partner a free pass.


The three judge panel said that McAluffe and Hillary Clinton's brother, Tony Rodham, misrepresented parts of the business. In the opinion, they said there are “no laurels" to be bestowed in the case. But the judges...

Carl Tobias: “...put it back on the plaintiffs and said, you really didn’t do sufficient due diligence.”

Carl Tobias is a law professor at the University of Richmond.

Tobias: “Federal rules require that you alleged fraud with specificity and there’s a heightened standard there.”

The investors admitted they signed documents without translating them into their native Mandarin. They put in around $500,000 each into the business but lost that money when the company went bankrupt.

Ben Paviour covers courts and criminal justice for VPM News with a focus on accountability.
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