A civil lawsuit has been filed over Vivos xPoint, a survivalist bunker development in South Dakota, with court papers accusing its owner of a scheme that allegedly left one investor out more than $1 million and without the completed bunker he says he was promised.
Here's what to know
Filed against Robert K. Vicino, the California owner of Vivos xPoint near Edgemont, the case says he and affiliated business entities committed fraud, broke contractual promises, and engaged in financial misconduct connected to the former military bunker property.
As South Dakota News Watch reported, the complaint was filed Sept. 3 in federal court in South Dakota under the RICO Act.
Plaintiff Xiong Xiong of New Jersey says he paid $110,000 for a residential bunker with a "turnkey finish" and, in 2020, sent another $1 million for a 13.33% stake in the investment group tied to the property.
In the suit, Xiong says the bunker "was never constructed as promised." He also alleges that money was diverted away from bunker construction and community infrastructure, while investors were charged inflated management fees, unexplained commissions, and personal costs.
Aaron D. Eiesland, a Rapid City attorney representing Xiong, told South Dakota News Watch he filed the case as a civil RICO action because of what he describes as a "pattern of criminal and corrupt activity."
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More background
The complex occupies part of the former Black Hills Army Depot, where the U.S. military once stored munitions in hundreds of above-ground concrete bunkers covered with earth, according to South Dakota News Watch.
After acquiring and starting to develop much of the property in 2016, Vicino marketed it as a survivalist community for people looking to live off-grid or prepare for catastrophe.
A 99-year lease runs about $55,000, and the listed purchase price is $75,000. Plus, a finished "glamping" version can add another $10,000.
According to South Dakota News Watch, the lawsuit says Vicino promoted the property as having a $500 million replacement value and the ability to generate cumulative investor returns of 577% by 2024.
In other disputes, residents at the complex have also complained that promised amenities — including a gym, mail station, health clinic, and restaurant — were never built.
What's being done?
According to South Dakota News Watch, Xiong is seeking compensatory damages tied to alleged unpaid distributions, diverted money, inflated management charges, unexplained commissions, and personal costs billed to the investment group. He is also asking for a full accounting of the group's finances and for a trust to be imposed over certain assets.
If the civil RICO claim succeeds, any actual damages could potentially be tripled. There are no known criminal charges against Vicino tied to the operation of Vivos xPoint.
As Eiesland put it: "It's tying them all together and bringing out more under one umbrella. Any criminal activity is also going to be a civil violation if there's a victim, and in this case, that's what it is."
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