Nowadays, we see a lot of so-called EB-5 visa "practitioners" still peddling regional centers and also offering quite dubious Direct Investment businesses to EB-5 visa investors.
What these so-called EB-5 "practitioners" don't disclose are important facts such as:
- Their actual experience, i.e. how many EB-5 visa investor clients they had, how many were approved for I-526 and how many of them went on to get their I-529.
- The USCIS itself recommends massive changes to the regional center programs due to fraud (see link http://www.lexisnexis.com/legalnewsroom/immigration/b/outsidenews/archive/2013/12/26/eb-5-audit-report-dhs-oig-gives-uscis-low-marks.aspx as well as the actual DHS OIG memo expressing concerns about the fraud committed by regional centers at http://www.oig.dhs.gov/assets/Mgmt/2014/OIG_14-19_Dec13.pdf ), while US ICE recommends shutting down ALL regional centers due to fraud (see details at http://www.grassley.senate.gov/judiciary/upload/EB-5-12-12-13-ICE-memo-security-vulnerabilities.pdf ). This shows that not one but two major US Government agencies of the DHS are worried about the fraud committed by regional centers. We should also remember that even the SEC issued their own memo about fraud committed in the EB-5 visa program by regional centers illegally and fraudulently offering securities (see link at http://www.uscis.gov/news/alerts/investor-alert-investment-scams-exploit-immigrant-investor-program )When at least 3 US government agencies themselves are warning about fraud being committed by regional centers in the EB-5 visa program, it is to protect EB-5 visa investors, and EB-5 visa investors should remember that the ONLY safe and quick way to get EB-5 visas are Genuine Direct Investment Businesses.
- The fact that those who apply for EB-5 visa through regional centers have to usually wait for 16-22 months, while those who apply for EB-5 visa through Genuine Direct Investment Business have to usually wait for only 4-7 months to get their EB-5 visa.
- The fact that the exit strategy in regional centers is terrible while the exit strategy in Genuine Direct Investment Businesses is very easy and straightforward.
- Capital gains are common in Genuine Direct Investment Businesses and Capital Losses are very common in regional centers and other Direct Partnerships.
- Regional Centers and Direct Partnerships usually illegally offer and sell securities.
- Genuine Direct Investment Businesses usually offer decent operating income that is usually sufficient to help an EB-5 visa investor support their spouse and kids quite comfortably. In regional centers and shady partnerships, it is hard to even get a 1% annual return, which is in mst cases inadequate to support an EB-5 visa investor's family.