Wednesday, September 18, 2013

I believe many securities broker dealers will land in trouble for failure to fully disclose material facts to EB-5 visa seekers while attempting to sell partnership / regional center securities, as this implicates securities law and other laws too.

Broker dealers who want to market securities in partnerships such as regional centers need to comply with disclosure requirements. They'd need to disclose material facts such as the delays in approval, conflict of interest, unauthorised (and illegal) offering & sale of securities overseas, etc. It is safer, faster and usually more profitable for EB-5 visa seekers to opt for Direct Investment Businesses.

See link FINRA clearly warns broker dealers to comply with the law.

Broker dealers will have to disclose that EB-5 visa seekers face long delays if they apply through regional centers and will also have to disclose that Regional Centers are notorious for widespread conflict of of interest and securities fraud along with violation of securities laws in the US and abroad., as these are facts known to most people anyway, and are certainly known in the USER groups that broker dealers frequent online.

EB-5 visa investors need to ask a few pertinent questions to any regional center promoter (CEO / CFO / Vice President / EVP / SVP etc.) or marketer (such as broker dealer or immigration agent) if they're willing to offer the following safeguards to EB-5 visa investors. Those who refuse to offer the following safeguards are probably crooks who should not be trusted or given the time of the day:

1) A written guarantee by the top 5 officers confirming that they will clearly disclose all material information at the very onset and on an ongoing basis. In the US, failure to disclose material information by sellers of securities is classified as SECURITIES FRAUD.

2) A written guarantee that they will NOT engage in conflict of interest.

3) A written guarantee that they will fully refund an investor's fees in case the investor's petition is rejected due to the fault of the regional center.

If Mr. Gunderson and Mr. Bradshaw refuse to offer this guarantee, we should ask what does the name of their regional center, 'US Freedom capital' imply? It certainly wouldn't imply freedom from fraud, incompetence and conflict of interest, so it may probably imply freedom (for Bradshaw, Gunderson, Yates, etc.) to plunder EB-5 investor funds to line their own pockets.

EB-5 visa investors need to remember that Direct Investment Businesses that opt for blue chip franchises (such as BK, 5 Guys, KFC, etc.) wholly owned and controlled by the EB-5 visa investor usually offer a safer, faster and very profitable way to get the EB-5 visa, and those who opt for regional centers or partnerships or third rate franchises will usually end up with delayed processing, capital lossess and low (or no) ROI caused due to extensive fraud, nepotism & conflict of interest, terrible exit strategies and high rate of denial of I-829.

Our EB-5 investor clients who opted to start Direct Investment Businesses in quality franchises such as 5 guys, KFC, McDonalds, etc. as opposed to the bottom tier franchises such as Voodoo or Marcos offered by our unscrupulous competitors, will find that they have the following advantages:

1) Great ROI, averaging 22% annually, and usually ranging from 20% to 30% annually.

2) Capital gains: Our recommended businesses usually appreciate while Marcos pizza locations are usually sold for a massive capital loss. In 10 years, none of my clients have had a capital loss, and most investors in regional centers have suffered full or partial capital loss.

3) Easy exit strategy: You will find more buyers for 5 guys / KFC restaurants in comparison to Voodoo BBQ offered by Joe Sloboda or Marcos Pizza.

4) Easy approval with USCIS and with banks: Bank underwriters are very picky, and they won't approve Voodoo BBQ locations easily, but will easily approve premium franchises such as 5 GUys / KFC / etc. because of their track record and market reputation. USCIS will also easily approve known and reputed brands with solid track records, while they won't do so with our competitors.

5) Full disclosure of material facts: Unlike David Tashroudian or the Voodoo promoters Joe Sloboda & Fred Burgess or Regional Center promoters, we clearly and fully disclose material facts to our clients, which is why we confidently offer written guarantees of full and clear disclosure of material facts.

6) Fee refund guarantee: We know that we do a thorough job, and therefore confidently guarantee our work, while our competitors refuse to stand behind their work. This shows EB-5 visa investors who is a professional and who is not.

If you're interested in getting your EB-5 visa in a quick and safe manner, please call us.

Yours truly
Mohammed Shaikh, MBA, CFE, Licensed Business & RE Broker (CA &FL)

Phone: 407 535 0616

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