Sunday, January 12, 2014

Why are so many regional centers facing investigation for fraud? Why are Direct Investment Businesses getting I-526 (EB-5 visa) approvals in less than half the time taken for

I read a news article at and another, which discusses how more regional centers face Congressional, DHS and SEC investigations for fraud.

Just recently, DHS OIG, US SEC and USCIS issued recommendations to make massive changes to the regional centers by putting more restrictions on them due to rampant fraud, while US ICE actually recommended shutting down regional centers altogether due to fraud in a confidential memo made public by Senator Grassley (see link The DHS OIG report recommended procedural safeguards in response to the rampant fraud committed by regional centers, due to which only approximately 40% of the EB-5 visa investors actually have a chance of getting their permanent green card, and of the over 400 regional centers in existence, not even 1 regional center's CEO, CFO and marketing agents are willing to offer written guarantees of freedom from fraud and conflict of interest. This goes to show that it is not just one but multiple government agencies that are requesting that all regional centers either be shut down or be placed under extensive oversight in order to prevent fraud that regional centers are famous for.

EB-5 visa investors should also avoid dealing with shady individuals such as Brian Su, Joe Sloboda, Fred Burgess, Kevin Jeffers, etc. who used to help illegally market and sell regional center securities in a fraudulent manner, and are are now marketing direct investments without disclosing material facts or conflict of interest.

EB-5 visa investors should remember that IT IS VERY HARD TO EARN MONEY AND VERY EASY TO BURN MONEY. A Genuine Direct Investment Business is the SAFEST, FASTEST and usually most PROFITABLE way to get an EB-5 visa.

A Genuine Direct Investment Business has the following characteristics:
It is 100% owned and controlled by the investor. This eliminates conflict of interest and significantly reduces the possibility of fraud. Even ICE, USA's biggest investigative agency says that all Regional centers usually commit fraud, conflict of interest and violations of securities laws (see ICE recommends shutting down ALL regional centers.)
It is in either a premium franchise such as Five Guys / KFC / Hertz etc. or in a solid non-franchise business such as banquet hall, used car lots, etc. If the business is a risky franchise such as Voodoo BBQ, Marcos Pizza, etc., it is unsafe. A franchise is suitable for investment only if it is on a major bank's list of approved franchises AND features in a list of top performing franchises (see ) AND is recommended by an experienced business broker who owes a fiduciary duty to the EB-5 visa investor. Most franchises are unsuitable for EB-5 visa investors due to their inability to PROFITABLY generate 10 jobs. 
It is easily saleable in the open market. For example, it is easy to quickly sell off a Five Guys or KFC Franchise in the open market, while there is no market for partnership or regional center securities, risky franchises such as Marcos Pizza / Voodoo BBQ / Twistee Treat, etc. due to which EB-5 visa investors are stuck for 5-9 years and have to PAY to sell their share. 
What are the advantages of choosing a Genuine Direct Investment Business to get the EB-5 visa?
The EB-5 visa investor gets FULL control and ownership of their business and corporate funds. This helps  eliminate conflict of interest and fraud, and results in higher earnings and capital gains.
The EB-5 visa investor usually earns 20-35% Returns annually, while regional centers offer measly returns of 1% and some partnerships are now known to offer returns of up to 5%, but have capital losses on exit.
The EB-5 visa investor usually earns solid capital gains of over 30% after 3 years, while those who invest in risky franchises, partnerships and regional centers usually end up with capital losses.
The EB-5 visa investor has an easy exit strategy and can sell their business (usually for a profit) as soon as they get their permanent green card (I-829 approval),  while risky franchises, partnerships and regional centers lock in funds for 5-9 years.
It takes about half the time to get the I-526 approval (temporary green card) using a Genuine Direct Investment Business in comparison to regional centers.
Genuine Direct investment Businesses are usually able to help the EB-5 visa investor get their I-829 approved, whereas less than half of the EB-5 visa investors who chose regional centers, partnerships and risky franchises were able to get their I-829 approved.
There is usually no conflict of interest and fraud seen in a Genuine Direct Investment Business, whereas there is usually extensive conflict of interest and fraud to be found in regional centers, partnerships and risky franchises. An excellent example is how Joe Sloboda and Fred Burgess sold Voodoo BBQ franchises to EB-5 visa investors without disclosing the fact that they were the master franchisors and earned money on the back end.
EB-5 visa investors should avoid dealing with entities who refuse to guarantee the following:
1.    Full and ongoing disclosure of all material information.
2.    Freedom from fraud and conflict of interest.
3.    Full refund of your fees in case you’re rejected by USCIS.
If you're an EB-5 visa investor interested in getting their EB-5 visa quickly, please contact us. You'll be really glad that you did.
Yours truly,
Mohammed Shaikh, Licensed RE and Business Broker (CA & FL)
Phone: +1 407 535 0616  
Skype: Mohammed.Shaikh

No comments:

Post a Comment