Friday, May 16, 2014

Practical reasons Broker dealers can't sell securities for US regional centers overseas. Why should EB-5 visa investors select Genuine Direct investment businesses?

Chinese law requires offering and sales of securities to be done only after prior approval from CSRC. Similarly, Indian law requires offering and sales of securities to be done only after prior approval from SEBI. While it is true that US based Broker dealers can use foreign associates to offer and sell securities, most broker dealers and regional centers know, but won't disclose the pertinent fact that those foreign associates are REQUIRED to be be in compliance with the securities laws governing their foreign jurisdictions.

Most regional centers and fraudulent partnership promoters offer and sell their securities through immigration agents who're UNLICENSED to offer and sell securities in their respective jurisdictions, and this usually results in not only illegal offering and sales of securities, due to which the sale can be rescinded (rolled back) if the EB-5 visa investor wishes to do so, but also usually results in grounds for suing the regional center and the unlicensed (to sell securities) immigration agents for securities fraud, as failure to disclose the material fact that they were NOT licensed to offer and securities in that foreign jurisdiction where the securities were offered and sold constitutes securities fraud, and so does failure to disclose the material fact that the regional center's offering was unauthorized by that jurisdiction's regulator. Even if regional centers employ US based broker dealers to help offer and sell securities overseas, both the regional center AND the broker dealer are required to ensure that they do so only through licensed securities professionals overseas, and that the securities offering is approved by the overseas regulator. A practical example is as follows: Any US based broker dealer can check that the securities regulatory authority in China and India are CSRC and SEBI respectively, and is required to ensure that their foreign affiliates are licensed by those regulators and are offering the US based securities in a manner compliant with foreign laws. This means that if a broker dealer is required to check and ascertain that in China, anyone offering or selling securities needs to be licensed by the CSRC and the securities offering needs to be approved by the CSRC, and if the broker dealer fails to do so, then under the doctrine of respondeat superior, not only the broker dealer, but the regional center itself would be liable for damages under the doctrine of respondeat superior, as a broker dealer does have an affirmative duty to confirm that it's affiliate is duly licensed AND that the security it is offering is also duly approved for sale in any overseas jurisdiction that it is offered in.

The problem for regional centers as well as fraudulent direct investment offerings (such as E3 Investment group) is that they deliberately refuse to offer and sell securities through licensed securities professionals overseas, and more importantly, they deliberately refuse to obtain approval of their securities offering from the overseas regulator, which basically means that till date, every single regional center that has ever offered and / or sold securities in India and China (I've only done comprehensive checks for these 2 countries) has done so illegally and fraudulently, and if a regional center promoters wishes to claim otherwise, they are welcome to step up and prove that they didn't violate securities laws.

EB-5 visa investors need to remember that it is easy to burn money and hard to earn money, and most, if not all, regional centers are such lousy investments that US investors will NEVER invest in them. Regional center investors usually lure investors into investing in loss making ventures, and then say that the money was at risk and was lost. I firmly believe that risk can and should be mitigated, and from past experience, I can personally confirm that it is very easy to profitably create jobs in Genuine Direct Investment Businesses, but very hard to do so in Limited Partnerships and Regional Centers.

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 my competitors usually don't 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.

Mohammed Shaikh, MBA, CFE, Licensed Business and RE Broker (CA & FL)
Phone: +1 407 535 0616 Skype: Mohammed.Shaikh
Online: The safest EB-5 option!

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