Top stories
Investor Alert-Recent Scams Exploit US Immigrant Investor Pr
USINFO | 2013-12-06 09:55
Recently, the US Securities and Exchange Commission's (SEC) Office of Investor Education and Advocacy, and the U.S. Citizenship and Immigration Services (USCIS) jointly issued an alert to warn individual investors about fraudulent investment scams that are seeking to exploit the Immigrant Investor Program, known as the EB-5.
The EB-5 program provides certain foreign investors who can demonstrate their investments are creating jobs in this country with a potential avenue to lawful permanent residency in the United States. To be eligible for the EB-5 program Business owners apply to USCIS to be designated as "regional centres". These regional centres, in turn, offer investment opportunities in "new commercial enterprises" that may involve securities offerings.
The SEC and USCIS have recently become aware of attempts to misuse the EB-5 program as a means to carry out fraudulent securities offerings.
In a recent case, SEC v. Marco A. Ramirez, et al., the SEC and USCIS worked together to stop an alleged investment scam in which the SEC claims that the defendants, including the USA Now Regional centre, falsely promised investors a 5% return on their investment and an opportunity to obtain an EB-5 visa. The promoters allegedly started soliciting investors before USCIS had designated the business as a regional centre.
The SEC alleged that while the defendants told investors their money would be held in escrow until USCIS approved the business as eligible for EB-5, the defendants misused investor funds for personal use such as funding their Cajun-themed restaurant. According to the SEC's complaint, the investors did not obtain even conditional visas as a result of their investments through the USA Now Regional centre.
In another case, SEC v. A Chicago Convention Centre, et al., the SEC and USCIS coordinated to halt an alleged $156 million investment fraud. The SEC alleged that an individual and his companies used false and misleading information to solicit investors in the "World's First Zero Carbon Emission Platinum LEED certified" hotel and conference centre in Chicago, including falsely claiming that the business had acquired all necessary building permits and that the project was backed by several major hotel chains.
According to the SEC's complaint, the defendants promised investors that they would get back any administrative fees they paid for their investments if their EB-5 visa applications were denied. The defendants allegedly spent more than 90 percent of the administrative fees, including some for personal use, before USCIS adjudicated the visa applications.
As with any investment, it is important to research thoroughly any offering that purports to be affiliated with the EB-5. If you are an investor and unsure of the validity of an EB-5 offering and you would like more information about the legitimacy of Regional Centres in the US, Migration Expert has a team of experienced US Immigration Lawyers who can point you in the right direction. If you have any questions at all please visit us at Migration Expert.com.
The EB-5 program provides certain foreign investors who can demonstrate their investments are creating jobs in this country with a potential avenue to lawful permanent residency in the United States. To be eligible for the EB-5 program Business owners apply to USCIS to be designated as "regional centres". These regional centres, in turn, offer investment opportunities in "new commercial enterprises" that may involve securities offerings.
The SEC and USCIS have recently become aware of attempts to misuse the EB-5 program as a means to carry out fraudulent securities offerings.
In a recent case, SEC v. Marco A. Ramirez, et al., the SEC and USCIS worked together to stop an alleged investment scam in which the SEC claims that the defendants, including the USA Now Regional centre, falsely promised investors a 5% return on their investment and an opportunity to obtain an EB-5 visa. The promoters allegedly started soliciting investors before USCIS had designated the business as a regional centre.
The SEC alleged that while the defendants told investors their money would be held in escrow until USCIS approved the business as eligible for EB-5, the defendants misused investor funds for personal use such as funding their Cajun-themed restaurant. According to the SEC's complaint, the investors did not obtain even conditional visas as a result of their investments through the USA Now Regional centre.
In another case, SEC v. A Chicago Convention Centre, et al., the SEC and USCIS coordinated to halt an alleged $156 million investment fraud. The SEC alleged that an individual and his companies used false and misleading information to solicit investors in the "World's First Zero Carbon Emission Platinum LEED certified" hotel and conference centre in Chicago, including falsely claiming that the business had acquired all necessary building permits and that the project was backed by several major hotel chains.
According to the SEC's complaint, the defendants promised investors that they would get back any administrative fees they paid for their investments if their EB-5 visa applications were denied. The defendants allegedly spent more than 90 percent of the administrative fees, including some for personal use, before USCIS adjudicated the visa applications.
As with any investment, it is important to research thoroughly any offering that purports to be affiliated with the EB-5. If you are an investor and unsure of the validity of an EB-5 offering and you would like more information about the legitimacy of Regional Centres in the US, Migration Expert has a team of experienced US Immigration Lawyers who can point you in the right direction. If you have any questions at all please visit us at Migration Expert.com.
