Thursday, July 24, 2014

Fortune slams EB-5 Program

See:

http://tinyurl.com/pwt886u

This is a hatchet job, in my humble opinion.  Where there is a lot of money, you will find some scam artists and charlatans and just plain crooks.

Thursday, March 27, 2014

Tuesday, March 4, 2014

Pleased to see the number one EB-5 lawyer get his say

Tom Rosenfeld has been featured in an interview by the online magazine, EB5investors.com.  I am so pleased because he is THE MAN aka the number one EB-5 lawyer in the world.

http://tinyurl.com/oen335k

Please read it and take it to heart.  Tom knows what he is talking about.

Thursday, February 20, 2014

Senate panel seeking information about regional center projects

Sen. Tom A. Coburn (R-OK), ranking member on the Senate Committee on Homeland Security and Governmental Affairs, has sent letters to approved regional centers asking for a lot of information that goes far beyond the scope of the annual audit (Form I-924A).
For example, the letter seeks information about any fees charged to EB-5 investor visa applicants and received by the regional center, including amount and description, a list of any current and former corporate officers of the regional center, including title, position and dates of employment, and the name and address of any individual or entity -- either foreign or domestic -- that the regional center has an agreement with to provide legal, accounting, recruiting or consulting services, as well as a description of the service provided.
I'm not sure why Sen. Coburn wants all of this information or what he and his committee would do if or when they got it.  Most members of Congress see the EB-5 Program as a benefit for their constituents in states that have regional centers.  True, there have been some problems.  EB-5 attracts crooks and scam artists -- and EB-5 lawyer and consultant wannabes -- because there is a lot of money involved.  But EB-5 is no more full of fraud and abuse than any other visa program run by USCIS.
In fact, a lot of projects -- some completed, some ongoing -- are creating thousands of jobs in the United States for hard-working Americans.  When I find out what's going on, I'll let you know.

Thursday, January 16, 2014

Revocation

Last year I predicted that a growth industry in my law practice would be USCIS notices of intent to revoke regional center designations.  A huge number of regional centers are inactive, failed or failing.  The annual audit, even if complied with by the regional center, will show no activity.  Regional centers that do not submit the annual audit to USCIS in late December risk receiving one of these notices to revoke.
These notices are going to come out of the EB-5 Unit in droves because so many regional centers are doing nothing.
Tyically there are three sound ways to counter one of these notices to revoke.  You can gin up an EB-5 project quickly and find the investors for it, which is very problematic and not likely.  You can affiliate with a successful regional center and glom on to another regional center's project -- not likely, but possible.  Finally, you can hire a manager who has successfully run another regional center or other regional centers.  There is ample precedent for this.
This is all very tricky business and not for the feint of heart. These approaches are by no means all-inclusive of what can be done in a notice-of-revocation situation, but they are the three main approaches I use.
Typically, regional center principals are real estate developers and spent lots of time and money to set up their regional centers -- often by EB-5 "consultants" who promised them the moon. It is always a shame when things don't work out, but the real estate economy is coming back very slowly, with commercial real estate and apartments leading the way.  Residential housing is still moribund.
Be very cautious when you receive one of these notices of intent to revoke and seek out an experienced EB-5 lawyer to help you respond. There is a lot on the line.

Friday, November 15, 2013

Ask and ye shall receive, but you will go horribly wrong

Many EB-5 project developers call us and want to obtain from us all of the information we know about the EB-5 Program.  Then they go away and try to do it on their own with often horrible results for themselves and their foreign investors.

Monday, October 7, 2013

EB-5 investors warned about scams

U.S. Citizenship and Immigration Services (USCIS) has issued a warning to EB-5 investors about scams.  One of the scams mentioned was the Chicago convention center.  Read the investor alert here:

http://tinyurl.com/l25b5zq

The Chicago convention center was a $156 million fraud investigated jointly by USCIS and the Securities and Exchange Commission (SEC).  The SEC has become increasingly involved in the EB-5 arena.