The first proposal was to require furnishing authenticated documents such as tax returns, bank statements, etc., as opposed to the current practice where unauthenticated documents are filed as supporting documents for the I-526 and I-829 petitions. If the USCIS does adopt this proposal, a significant chunk of laundered money will be effectively barred from the EB-5 program, and will primarily impact regional centers.
Another proposal was put forth to require regional centers to furnish evidence that they'd lawfully marketed and sold securities overseas to EB-5 visa investors, and if adopted, this proposal would prevent regional centers from accessing EB-5 capital unless and until they could prove that they'd lawfully marketed and sold securities to EB-5 visa investors overseas. This means that every regional center or LLP would be required to prove that if they'd marketed and / or sold securities overseas, they'd done so in compliance with the law overseas. At present, every single regional center that has ever sold securities overseas has done so illegally, and if this proposal is adopted, they would be unable to do so in the future.
Equal footing rules were also proposed, which would mean eliminating indirect jobs rules that are presently used by regional centers, so that regional centers competed on an equal footing with direct investment businesses. There were also several proposals made in favour of premium processing for EB-5 visa investor petitions, as well as opposition to such proposals until such time as USCIS didn't first effectively act to prevent fraud and money laundering in the EB-5 visa program.
I don't think even a single regional center CEO can honestly state that they have not violated or attempted to violate securities laws, and I also don't believe that we can find even 1 regional center where fraud and conflict of interest do not exist. In simple terms, EB-5 visa investors strongly prefer capital gains and decent income during the process of getting their green cards, and will NOT settle for paltry returns and almost certain capital losses (caused due to fraud and conflict of interest) anymore.
We see many "Due diligence experts" who claim to know how to do due diligence for regional center (or even Direct Investment) investment opportunities, and these phonies give false assurances to EB-5 visa investors that regional center investments are safe and great. These so-called experts seem to be turning a blind eye to the fraud and conflict of interest that can be so easily seen in over 98% of the cases, be they regional centers or even so-called Direct Investments such as the fraudulent and conflict of interest ridden offerings of Twistee Treat, Voodoo BBQ (by Fred Burgess and Joe Sloboda) or Carl's Jr. by David Tashroudian or Marcos Pizza by Mr. Hall (to cite just a few examples of extremely risky franchise offerings).
An easy way to do due diligence is to ask the HARD Questions, which so-called due diligence experts such as Michael Gibson, Wassem Amin, Mark Ivener, etc.
Some of the ways these so-called experts seem to be negligent (and potentially liable for damages too) are:
1) They failed to advise EB-5 visa seekers that regional centers were illegally offering and selling securities overseas.
2) They failed to advise EB-5 visa seekers that regional centers were engaging in conflict of interest.
3) They failed to advise EB-5 visa seekers that regional centers were committing securities fraud by failing to fully and truthfully disclosing all material facts.
4) They failed to advise EB-5 visa seekers that approval times for regional centers were far longer than those for Direct Investment Businesses.
5) They failed to advise EB-5 visa seekers if they received any remuneration from regional centers, and if so, how much?
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?
This is important because capital loss is very commonly experienced by EB-5 visa investors in regional centers and other partnerships, while none of our clients has experienced it, as we only offer Genuine Direct Investment Solutions to EB-5 visa seekers.
2) What is the mean and median processing time for regional center sponsored I-526 and I-829 petitions?
This is important as 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?
This is important as EB-5 visa investors have easy exit strategies in our recommended businesses while they are stuck for years in regional centers.
4) What is the mean and median annual ROI that is offered by your partnership / regional center?
This is important as EB-5 visa investors usually earn a lot more in businesses recommended by us than in regional centers.
5) Are you willing to offer a sworn affidavit that you have not engaged in and won't in the future engage in conflict of interest?
6) 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 offer this guarantee in a notarised affidavit.
7) Are you offering and selling securities overseas in full compliance of US and overseas securities laws?
Avoid those who refuse to confirm this in a notarised affidavit.
8) Are the business founders, CFO and CEO willing to offer written guarantees of FULL refund of fees if the EB-5 visa petition is denied at any stage through no fault of the EB-5 visa investor?
EB-5 visa investors should avoid those who refuse to offer this guarantee in a notarised affidavit.
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:
- Faster processing and approval times.
- Easy exit strategy.
- Investors usually get a much higher Return on Investment.
- Investors usually get a much higher Capital gain, whereas regional center investors usually get capital losses.
- Our clients have a 100% approval rate of I-526 and I-829, while those who choose regional centers or other partnerships don't.
- 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.
- Full control of business and capital, which helps prevent fraud, conflict of interest and losses.
- 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.
- We offer a written guarantee of freedom from fraud and conflict of interest, whereas our competitors usually don't offer this guarantee.
- We offer a written guarantee of FULL disclosure of material facts on an ongoing basis, whereas our competitors usually don't offer this guarantee.
- 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.
- 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.
- 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.
- 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.