Tuesday, November 19, 2013

DHS whistleblower sparks fresh investigation of irregularities in regional centers out to defraud EB-5 visa investors. Now even DHS insiders say regional centers are fraudulent and will cause losses!

I just read an article about a DHS employee who noticed massive irregularities in the EB-5 visa program (see link ) and I now understand that the DHS is finally conducting a full scale audit of the suspicious transactions.

How can EB-5 visa investors avoid being defrauded?

I recently read this investor alert, issued by the SEC warning EB-5 visa seekers about fraud committed by regional centers and other partnerships. Most EB-5 visa seekers don't get their permanent green card if they've applied through a regional center or partnership.

All EB-5 visa seekers should ask the following questions of regional centers and partnerships to detect and prevent fraud:

1) What is the mean and median amount of capital loss experienced by EB-5 visa seekers who invest in your regional center or partnership?

Capital loss is very commonly experienced by EB-5 visa investors in regional centers and other partnerships.

2) What is the mean and median processing time for regional center sponsored I-526 and I-829 petitions?

EB-5 visa petitions filed by regional centers and other partnerships now take about twice as long as Direct Investment businesses to get approved.

3) What is the mean and median lock in period for capital in regional centers?

EB-5 visa investors are usually stuck for 5-9 years in regional centers.

4) What is the mean and median annual ROI that is offered by the partnership / regional center?

EB-5 visa investors usually earn 1% or less in regional centers.

5) Are the business founders, CFO and CEO willing to offer written guarantees of FULL disclosure of material facts on an ongoing basis as well as freedom from fraud and conflict of interest?

Avoid those who refuse to guarantee this in a notarised affidavit.

6) Are you offering and selling securities in full compliance of US and overseas securities laws?

Avoid those who refuse to confirm this in a notarised affidavit.

A simple way for EB-5 visa investors to detect & prevent fraud is to demand the following safeguards from those who offer EB-5 visa related services:

1) A written guarantee by the top 5 officers of the regional center / partnership firm AND the marketer, confirming that they will clearly disclose all material information on an ongoing basis, as failure to do so is classified as SECURITIES FRAUD.

2) A written guarantee that the marketer and regional center / partnership officers will NOT engage in conflict of interest, and will procure goods / services and hire employees in a transparent and competitive manner.

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

4) A full disclosure of the amount of capital that the firm's founders and investors have invested and the percentage of ownership stake and profits that they will get.

If you're an EB-5 visa seeker interested in getting your EB-5 visa in a quick, safe and usually profitable manner, please call us on +1 407 535 0616.

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

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