I just read a rather misleading and ridiculous email by Prashant Ajmera, that was designed to deceive EB-5 visa investors and make them invest in regional centers. Guess what Mr. Ajmera, your game is up!
1) Why don't you go ahead and at least define how someone can say whether or not they are really ready to run and operate a business? BTW, run and operate are synonyms in this context, and it does not take a rocket scientist to manager and operate a business. FYI, you do NOT need to run the business, you can hire managers to run it for you and can fire them if they don't perform.
2) Since when was this a prerequisite? I've 77 clients who successfully owned and are still running businesses in the US, and guess what? NONE of them had even managed and owned a business in the US before they came here. So, just why do you claim that the experience is NECESSARY? This is pure, unadulterated BS!
3) It doesn't take a rocket scientist to manage and operate a business in the US. I've clients who started with 2 liquor stores and had 7 by the time they sold, and all they needed was to use common sense, which means selling for more than they were buying for.
4) Since when was fluency in English a prerequisite? Have you been to Jackson Heights or Chinatown in NY or Fremont (CA) or Devon in Chicago or Tonnelle Avenue in Jersey City (NJ)? These are just some locations where my clients are doing just fine without having to speak a word of English. Anyway, did you know that in every county, there are FREE English classes for recent immigrants who don't speak English?
5) The cost of business operations in the US is commensurate with the earnings potential in the USA, so please compare apples to apples.
6) Just why do you think do you need to work long and hard hours? Have you heard of the concept of delegating tasks to your employees and managing employees? Usually 50-55 hours a week is more than adequate to manage a business.
Then, Mr. Ajmera asks the EB-5 visa investor to ask unimportant questions, when the really BIG questions are:
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.
To this too, I say BS!
1. I have several clients who were doctors, engineers, dentists, bureaucrats, etc. in their home country and are doing just fine in the US managing their own businesses.
2. Not necessary at all. You can go for a totally new business and still do well at it. If this is not true, why are you selling Twistee Treat franchises?
3. You do NOT need to invest $1 Million. You can invest even $500,000 if you choose a TEA.
4. You just have to manage, and can even operate if you want to.
5. You don't need to have the experience and you don't need to hire managers if you don't want to. When you have franchisors willing to train you and business advisors (such as myself and the CPA) willing to guide and mentor you, you can do just fine even if you have no prior experience.
6. Pretty much anyone can operate and manage a business in the US. Do remember that the people who are investing are not stupid and in most cases are actually quite smart, well read and qualified, and it doesn't take a genius to run a business and grow it.
7. Again, since when did fluency in English become a prerequisite? I've a client in Little Havana who speaks nothing but Spanish, and I've Indian & Pakistani clients who don't speak English at all, and they are doing just fine. While you're at it, why don't you mention the fact that there are FREE English Language classes for new immigrants?
8. The cost of business operations are actually commensurate with the earnings, so please compare apples to apples.
9. This was perhaps the only intelligent question, and the answer is, "The investor can either come over on visit or student visa and do adjustment of status within the country" OR pay a nominal management fee to us to manage their business on a temporary basis OR authorise us to hire managers on their behalf and have the CPA and me monitor the manager.
Mr. Ajmera doesn't disclose the fact that he represents the interests of the regional centers or franchisors, and does not represent the interests of the EB-5 visa investor. Fact is, he doesn't owe fiduciary duties to the EB-5 visa investors, which makes him inherently untrustworthy. Fact is, Mr. Ajmera actually offers and sells securities ILLEGALLY in India, and someone who can violate the law for money can and will cheat clients for money. His misleading and deceptive email is available for review with me in case anyone wishes to read the original.
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. You will be glad you did.
Mohammed Shaikh, Licensed Business & RE Broker (CA & FL)