Tuesday, May 13, 2014

Combined SEC and DHS enforcement action is expected to cause a complete collapse of regional centers due to liquidity crunch. EB-5 visa investors should always select Direct Investment Businesses.

I had a very interesting conversation with 2 government employed attorneys, and was advised that even if a regional center hired a broker dealer, who then paid overseas immigration agents a commission, the broker dealer and the regional center would still be liable and the securities sale agreement would still be subject to rescission at the buyer's discretion. It seems that the SEC is determined to stamp out the widespread practice of regional centers illegally paying steep commissions to Chinese (and other country's) immigration agents who help regional centers in illegally offering and selling securities overseas without the approval of overseas regulators, as required by law.

As it is, the SEC is not only sending out subpeonas to regional centers, but the SEC + FBI + DHS are also in the middle of their own investigations about securities fraud and illegal marketing and offering of secutiries by regional centers. The very fact that regional centers fail to disclose to EB-5 visa investors that they are illegally offering and selling securities overseas is an an act of securities fraud. Now that Regional Centers are lining up to hire broker dealers, they also have to strictly comply with the AML (Anit Money Laundering) statutes, which serves to further restrict their ability to raise capital from China, India and most parts of Latin America, as Broker Dealers will refuse to handle laundered funds for regional centers.

In a nutshell, regional centers are now effectively barred from most capital markets, and are logically expected to die a natural death in the near term due to a liquidity crisis caused by a failure to adapt to regulatory changes and enforcement action.

As it is, the ROI from regional centers is quite low, and when other factors such as terrible exit strategy, lengthy delays, high risk of failure, securities law violations and conflict of interest are bundled on top of it, then the only option for an EB-5 visa investor is to opt for a Genuine Direct Investment Business.

Direct Investment Businesses usually offer the following advantages to EB-5 visa investors:

    Significantly higher ROI compared to regional centers.
    Extremely low risk of fraud and conflict of interest.
    Easy exit strategy.
    Decent capital gains.
    Quicker processing.

I've helped 70 EB-5 visa investors get their green card under the Direct Investment category, and have so far had a 100% approval rate. If you're an EB-5 visa investor interested in getting your green card safely, quickly and usually profitably, please call me. You'll be glad you did as I offer the following guarantees that none of my competitors usually offer:

1. I offer a 100% fee refund guarantee in case a client is denied due to our fault.
2. I offer a guarantee of freedom from fraud and conflict of interest to my clients. NONE of the regional centers will EVER agree to this clause.

Yours truly
Mohammed Shaikh, MBA, CFE, Licensed Business and RE Broker (CA & FL)
Phone: +1 407 535 0616

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