Sunday, November 10, 2013

E3 Investment Group is misleading EB-5 visa seekers & may be using separate entities per investor in order to avoid the new JOBS Act requirement of audited financials for capital raise over $500,000!

I reviewed the E3 website at and noticed that it was quite misleading. They imply that their "Scalable Direct" model is way better than Genuine Direct Investment Businesses as it has a better ability to create jobs and offers investor control as well as a quicker return of capital, and to these false claims, I say, "Nonsense!"

Let us examine in detail the reasons why their claims are FALSE and may actually qualify them to be charged with securities fraud.

1) First and foremost, they still haven't had even 1 approved I-526, and as such, don't have a track record on which to base their flimsy claims.

2) Second, in most instances, Genuine Direct Investment Businesses actually do have dedicated management teams, with the investor managing the business while the workers run it. When the EB-5 visa investor manages their own business, they save $15,000 in management fees EACH month, which is equivalent to $180,000 a YEAR of income going straight to the EB-5 visa investor.

3) The E3 Investment Group website claims that their model has a better ability to create jobs, and I say that is a lie, because a) they don't have any operating history yet to substantiate their claim, and b) I am willing to have an independent panel of 3 randomly selected CPA's review a Genuine Direct Investment Business against the E3 business model to confirm that on any given day of the week, Genuine Direct Investment Businesses will always outperform the E3 business model in profitably generating the required 10 jobs for an EB-5 visa investor.

4) The E3 Investor Group website falsely claims that the investor has control, when the fact is, the investor has limited control and can't even sell whenever they want to sell, in order to exit their business. In contrast, our clients always have FULL control of their business and their funds, due to which they're able to avoid the conflict of interest and fraud that is seen in partnerships and regional centers, and can exit whenever they want.

5) The E3 model falsely claims shorter processing time, when the fact is, they still haven't received even a single approval (because AFAIK, they haven't applied for an EB-5 visa till date). I believe that they may take longer than a genuine Direct Investment Business to get an I-526 approval as securities laws are involved.

6) It is also my belief that the sole reason they're limiting each entity to $500,000 per investor is to avoid the new JOBS Act requirement of capital raises of over $500,000 to provide CPA audited financial statements. In any EB-5 visa investment that involves regional centers and partnerships, it is VERY IMPORTANT for EB-5 visa investors to insist that the subscription agreement be received, signed and delivered within the US and that the amount of the investment be at least USD 500,001, so that the EB-5 visa investor gets a lot of the protections of the JOBS Act, including CPA audited financials. This way, EB-5 visa investors will get a more complete picture and also get to avoid the false statements that regional center and partnership promoters publish in their marketing collateral and on their websites.

If you're an EB-5 visa investor who wants to get their green card in a safe, usually profitable, quick and fraud free manner, please contact me on +1 407 535 0616.

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

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