Tuesday, October 28, 2014

Regional centers apprehensively await the results of the mid-term elections as Senator Grassley is expected to lead the Senate Judiciary Committee & widen the crackdown on fraud by regional centers.

Republicans look all set to go ahead and win the mid-term elections (see link, and it is expected that a long term foe of regional centers will now have more power to permanently shut them down.

The SEC and USCIS have been advising EB-5 visa investors to avoid regional centers due to rampant fraud and money laundering. (See memo at

Even ICE has recommended closing ALL regional centers due to fraud and money laundering. (See memo at

As Democrats look all set to lose control of the House and Senate to Republicans, regional center promoters and marketers are wondering how to deal with the deluge of denials that are facing EB-5 visa investors as more regional centers get targeted for closure.

What does Republican control of the House and Senate mean for the EB-5 visa program?
Republican politicians are anyway more sympathetic to the concerns of government agencies (such as ICE, USCIS, FBI, SEC, IRS, etc.) who've voiced serious concerns about the fraud, money laundering etc. seen with regional centers. and when these concerns are aligned with a chance to link relatives of prominent politicians to securities fraud, money laundering, perjury, conspiracy etc., it is expected that we shall see a lot more regional centers being shut down, and several thousand EB-5 visa applicants being denied.

HOW can EB-5 visa investors avoid this certain wave of EB-5 visa denials and regional center shutdowns?
The ONLY certain way for EB-5 visa investors to avoid this upcoming wave of I-526 and I-829 denials and regional center shutdowns is to invest in Genuine Direct Investment Businesses.

What are some things to watch out for?

a) Is the promoter / marketer being paid to market this franchise to an EB-5 visa investor? If the answer is YES, then it is probably not a Genuine Direct Investment Business. Some examples are Marcos Pizza, Voodoo BBQ (Joe Sloboda and Fred Burgess seem to be master franchisors), Twistee Treat, Carl's Jr. (David Tashroudian), E3 Investment Group, etc.

b) Is the marketer and CEO of the business willing to offer a written guarantee of freedom from conflict of interest and full disclosure of material facts?
In case the answer is no, then the investment is VERY risky and should be avoided.

c) Do they offer a fee refund guarantee in case the investor is denied?
Professionals are always willing to go the extra mile to ensure that they offer the best service to their clients. This is why we confidently offer a fee refund guarantee in case our client is denied due to our fault. Our competitors don't offer this guarantee at all.

Here are some of the reasons that EB-5 visa investors should ALWAYS choose Genuine Direct Investment Businesses:

EB-5 visa investors who choose Genuine Direct Investment Businesses usually earn annual ROI of 15% to 40%, while regional centers usually offer 0-2% annual ROI.

Genuine Direct Investment Businesses offer easy exit strategies to EB-5 visa investors while regional centers offer TERRIBLE exit strategies.

Regional Centers usually commit securities fraud and securities law violations while this is rare in Genuine Direct Investment Businesses.

EB-5 visa investors usually get capital gains if they invest in a Genuine Direct Investment Business and usually don't get capital gains if they invest in a regional center.

EB-5 visa investors in Genuine Direct Investment Businesses see faster processing and approval of their petitions compared to regional centers.

EB-5 visa investors in Genuine Direct Investment Businesses have a higher chance of getting their permanent green card.

The ONLY safe, fast and usually profitable way to get an EB-5 visa is through investment in a GENUINE Direct Investment Business. An even faster and easier way to get a PERMANENT green card is to apply for the L1A visa and then the EB-1C visa.

If you are an EB-5 visa investor interested in applying for your EB-5 visa, please contact us for a free consultation.

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

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