Friday, December 13, 2013

Politics as usual? Democrat Senator backs a CA based regional center expanding into Nevada by leaning on DHS to approve EB-5 visa for the regional center's investors.

I read a recently published news article at, about how a CA based regional center expanding into Nevada was given a little inside help by Democratic Senator Harry Reid. The funny thing is, Mr. Reid received over $200,000 in bribes campaign contributions from individuals related to this regional center. This article shows how Harry Reid worked with Alejandro (Ali) Mayorkas to overturn a legally "NON-APPEALABLE DECISION", and Harry Reid may face a criminal investigation for his role in facilitating the grant of visas that were denied. As we all know, Ali Mayorkas is the same sleazebag who helped a convicted drug dealer get a presidential pardon even though this drug dealer was caught with about 800 pounds of cocaine (see story at )!

What is apparently NOT reported by many news outlets is that the lobbyists for Sam Nazarian's casino are employers of Harry Reid's son, Rory Reid. The EB-5 visa investors who were interested in renovating the SLS Hotel — which was earlier known as the Sahara. SLS Hotel is represented by Sen. Reid’s son, Rory Reid, who works at the law firm Lionel, Sawyer & Collins. In their 2012 “Year in Review,” the Nevada firm hyped “the benefit of working with Rory Reid of Lionel Sawyer & Collins.” In politics, bribes are quite often disguised as campaign contributions or business sent to employers of relatives (kids, spouses, siblings, etc.) or even directly employing the relatives (such as a former president's daughter getting employment at inflated salaries that she didn't deserve).

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It is now believed that DHS OIG is reviewing the EB-5 visa petitions that were filed on behalf of American Dream, and it is expected that the EB-5 visas granted due to political pressure on behalf of Mr. Sam Nazarian's casino will be revoked and any pending petitions will be denied as well. What started out as a dream could well end in a nightmare for the EB-5 visa investors who chose to invest in the casino project, and it is believed that several Republican senators are going to use this case as a legitimate opportunity to permanently ruin Harry Reid's career in retaliation for the removal of the filibuster. The chances of Mr. Reid, Mr. Nazarian and a certain LA based attorney going to prison seem quite high as it is believed that the funds were proceeds of illegal offerings and sale of securities AND the funds were laundered before being invested in the casino, which has attracted the attention of 5 federal agencies.

ICE also came up with their own proposals to end the regional center program due to fraud issues. The proposed ICE - HSI recommendations are mentioned in Senator Grassley's website at and they clearly mention 3 proposals that will shut down regional centers PERMANENTLY. These changes are expected to be made within the next 15 months as the Senate and House will be controlled by Republicans from next November onwards (and yes, you can bet your bottom dollar on it)! The legislative changes proposed by HSI were: "(1) doubling the minimum investment amount, (2) limiting the program to allow only active investors involved in managing and directing a business enterprise, and (3) eliminating the consideration of induced jobs for meeting the requirements of the program. The HSI memo makes clear that overall, HSI believes the Regional Center model has significant flaws and should be abandoned: “The principal change proposed by HSI was that the Regional Center Model be allowed to sunset, as HSI maintains there are no safeguards that can be put in place that will ensure the integrity of the RC (regional center) model.”  ICE even says: "In addition to the information gap on EB-5 beneficiariesm there are procedural issues associated with the approval and operation of RCs that lead to vulnerability. The HSI review has uncovered serious concerns about the credibility of the RC platform. The nature of indirect job growth is problematic, and based almost solely on a RC's job creation methodology as described in applications to USCIS. HSI conducted research using job creation statistics used by large corporations and the U.S. government stimulus package, and has reason to believe that the RCs are greatly exaggerating their indirect and induced job creation figures. By not having to provide evidence of jobs directly created, the RC inherently creates an opportunity for fraud, where the business goal can be initiating projects that give the appearance of creating job growth, with the sole intent to meet USCIS criteria rather than produce jobs."
When ICE - HSI itself goes on the record and says that after extensive research, they have reached the conclusion that there is NOTHING that can be done to ensure integrity in the regional center model, EB-5 visa investors should realise that regional centers should be AVOIDED at all costs! I've been saying for years what 4 US government agencies (SEC, FBI, USCIS and ICE) are saying now, which is: Regional Centers are inherently unsafe for EB-5 visa investors, and Genuine Direct Investment Businesses are the ONLY safe choice for EB-5 visa investors.
As EB-5 visa investors know, regional centers were already engaged in violations of securities laws, securities fraud and money laundering, but this takes the sensitivity to an entirely new level, as the GOP may well use legitimate national security and crime fighting concerns to come down hard on Democrat allied regional centers such as GCFM (which had Terry McAuliffe and Hillary Clinton’s kid brother Anthony involved in securities fraud, securities law violations AND money laundering) to Bay Area Regional Centre (where his Willieness has done quite well) to American Dream as well as probably US Freedom Capital, American Life and Pacifica too. 
After all, when multiple goals CAN be achieved with one initiative, and the GOP gets to totally hamstring Hillary’s bid for the presidency and legitimately ruin the political careers of several prominent Democrat politicians such as Harry Reid, Terry McAuliffe, Hillary Clinton and others, they’d be stupid to let that opportunity go to waste.
The fact is, there is NO ambiguity when it comes to defining the best option for EB-5 visa investors, and any objective attorney and CPA will clearly advise EB-5 visa investors to choose a Genuine Direct Investment Business and avoid regional centers and partnerships due to fraud, conflict of interest, mismanagement, low returns and terrible exit strategies.

 EB-5 visa seekers should remember that Genuine Direct Investment businesses are THE BEST option to get the EB-5 visa quickly, safely and usually profitably for the following reasons:
  1. Faster processing and approval times.
  2. Easy exit strategy.
  3. Investors usually get a much higher Return on Investment.
  4. Investors usually get a much higher Capital gain, whereas regional center investors usually get capital losses.
  5. Our clients have a 100% approval rate of I-526 and I-829, while those who choose regional centers or other partnerships don't.
  6. Our clients have very little risk as we conduct extensive due diligence and work hard to prevent fraud and conflict of interest, whereas regional centers and partnerships are overrun with fraud and conflict of interest.
  7. Full control of business and capital, which helps prevent fraud, conflict of interest and losses.
EB-5 visa investors need to remember that we offer THE BEST service when it comes to offering a turnkey solution for the following reasons:
  1.  Our clients ALWAYS have full control of their business and their money. Those who choose regional centers and partnerships usually have to kiss their money goodbye, and are STUCK for 5-9 years.
  2. We offer a written guarantee of freedom from fraud and conflict of interest, whereas our competitors usually don't offer this guarantee.
  3. We offer a written guarantee of FULL disclosure of material facts on an ongoing basis, whereas our competitors usually don't offer this guarantee.
  4. We offer a written guarantee of full fee refund in case a client is rejected due to our team's fault, while our competitors usually don't offer this guarantee because they are incompetent cowards who are unsure about the quality of their work.
  5. Since 2004, our clients have NEVER been denied at the I-526 and I-829 stage, and have NEVER suffered operating or capital losses, and have usually earned over 22% annual Return on Equity because of our focus on due diligence and our extensive efforts to reduce risk by preventing fraud and conflict of interest. Try finding a regional center or partnership that boasts of this record.
  6. We are quite objective in our assessments, and owe a fiduciary duty to our EB-5 visa investor clients, while those who sell regional center and partnership securities usually do not owe fiduciary duties to EB-5 visa investors. In plain words, we are required by law to put our clients interests first, and we do so because it helps us more than it helps our clients! We advise our clients diligently and help them make solid decisions.
  7. We are probably the ONLY firm that actually encourages our clients to always stay in full control of their business and their funds at every stage as this helps us avoid escrow accounting and reduces potential for fraud, embezzlement and litigation.
If you're an EB-5 visa investor who wants to get their green card quickly, safely and in a usually profitable manner, please contact us. You'll be glad you did!
Yours truly,
Mohammed Shaikh, Licensed RE and Business Broker (CA & FL)
Phone: +1 407 535 0616 Online: htttp://

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