Sunday, November 10, 2013

How can EB-5 visa investors avoid fraud? What is the safest way to get an EB-5 visa?

It is quite common for EB-5 visa seekers to encounter unethical and unscrupulous crooks who use a wide variety of marketing gimmicks and fancy sales presentations to defraud EB-5 visa investors. EB-5 visa seekers and immigration attorneys need to ask important questions to get facts that will help EB-5 visa investors in separating the unprofessional and dishonest people from the honest and ethical people.

As a rule of thumb, the safest, fastest and usually most profitable way to get an EB-5 visa is to start a business using either a premium franchise in businesses such as fast food, auto parts, family entertainment centers, child care, car rentals, etc. or non-franchise businesses such as skating rinks, produce markets, banquet halls / conference venues, used car lots, etc.

If someone offers EB-5 visa seekers an investment in a partnership or regional center as a way of getting the EB-5 visa, the EB-5 visa investor should insist on having the securities offering physically mailed or emailed from the US and returned by mail to a US address only, as this makes the issuer liable for compliance with US securities laws and holds them accountable for any fraud, as it is common knowledge that regional center and partnership promoters are heavily engaged in committing fraud against EB-5 visa investors, and having securities sold or offered subject to US laws helps in protecting the interests of EB-5 visa seekers. An EB-5 visa investor should also insist on having the securities offering be of at least $500,001, as this requires the securities issuer to offer CPA audited financial statements, which further helps to detect and prevent fraud.

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.

 Here are some more questions that EB-5 visa seekers should ask in order to make better informed decisions:

1) What is your role and how are you qualified to fulfil that role?

2) What is the license you hold and how does it qualify you?

3) What is your practical experience in EB-5 visa? How many clients have you helped so far and how long have you done so?

4) What is your track record? Have your clients experienced capital loss, visa loss or operating loss?

5) What do you do to help me avoid getting defrauded?

6) Do I fully own and control my business and capital?

7) What is the exit strategy?

8) What is the typical approval time?

9) Are you willing to offer a notarized guarantee saying that you will fully disclose all material facts in an ongoing manner and refrain from engaging in conflict of interest?

10) Do you offer a turnkey solution?

11) Do you expect me to pay for your mistakes, or will you refund my fees in case I'm denied due to your negligence and / or incompetence?

12) Do you have a strict policy of transparently and competitively hiring employees, or do you just hire related individuals who may be less qualified?

13) Do you have a strict policy of transparently and competitively procuring goods an services, or do you  procure them from related parties?

An honest service provider will never expect a client to pay for the mistakes and negligence of the service provider, and will always agree to fully disclose all facts. We believe in honesty, transparency and accountability, and we always put our client's interests ahead of our own, which is why we offer an unconditional guarantee that in case our client is denied due to our fault, we will cheerfully refund their fees. Our professional approach is why our clients have never suffered losses (be it operating loss or capital loss) and is also the reason why our clients have never been rejected.

The above is my opinion, PLEASE consult a qualified attorney for advice to confirm that the above is correct. If you're an EB-5 visa investor interested in getting your green card in a safe, quick and usually profitable manner without any conflict of interest and with easy exit strategies, please contact us. You'll be really glad you did.

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

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