Tuesday, January 6, 2015
Is Mayorkas going down for aiding and abetting visa fraud and money laundering? ICE recommends shutting down regional centers and the new Congress will support it.
It looks like there may be truth in the rumours that we may see some senior executives exit the DHS this year, and we will also end up seeing regional centers being permanently BANNED from the EB-5 visa program in September 2015. Those EB-5 visa investors who're relying on regional centers to get their EB-5 visas may need to urgently confer with their attorneys to review alternative options available to them. It is a well known fact that many agencies (such as Dept. of State,
SEC, ICE, DHS OIG, USCIS, FBI, NSA, etc.) have privately and publicly voiced
concerns about the rampant securities law violations, securities fraud and
money laundering committed by regional centers, and the Democrats ignored these
valid concerns, which infuriated these agencies and career officers who opposed the fraud and money laundering.
It is a well known fact that Republicans have a natural affinity with law enforcement agencies, and with the new Congress being seated with Republican majorities in both the House and Senate, Republicans may try to kill 2 birds with 1 stone. Republicans want payback against Harry Reid for his stunts in the Senate last year to get Mayorkas confirmed, and what better way to make Reid look like an ass than to go after Mayorkas for illegally getting EB-5 visas for Harry Reid and Tony Rodham (the kid brother of Hillary Clinton), and in the process getting rid of both Reid and Mayorkas in a legal manner that makes them look good in the process?
After all, Mayorkas directly helped Harry Reid's son by illegally granting EB-5 visas to investors in
SLS casino and seems to have turned a blind eye to
numerous warnings. This not only helps address the concerns of the law
enforcement and intelligence community, it also helps to effectively and
permanently sabotage the political careers of Harry Reid, Hillary Clinton and
other Democrat heavy weights such as Bill Clinton, Willie Brown, Ross-Lehtinen,
DiFi, Boxer, etc.
Since 2012, ICE has officially recommended banning regional centers from the EB-5 visa program and actually said "there can be no safeguards that can be put in place that will ensure the integrity of the regional center model." See link at https://www.congress.gov/congressional-record/2013/12/19/senate-section/article/s9001-2
The same link above also reports that "DHS OIG audit found that Mayorkas failed to ensure regional centers meet all program requirements. USCIS under the leadership of Mayorkas applied program regulations and policies. USCIS doesn't always properly document decisions and responses, giving the appearance the program is vulnerable to inappropriate influence." I believe this refers to the infamous cases of EB-5 visas being illegally granted to investors in
SLS Casino and
GCFM (with GreenTech Automotive being used to launder millions of dollars).
What can EB-5 visa investors learn from these events?
As thousands of EB-5 visa investors have already learnt to their misfortune, regional centers usually commit securities fraud and launder money. What most EB-5 visa investors don't realize is that regional centers also violate securities laws by illegally offering and selling securities overseas. What most regional centers don't disclose is that EB-5 visa investors face almost certain capital loss, and more importantly, they don't disclose that most EB-5 visa investors do NOT get a permanent green card.
EB-5 visa investors need to 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
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 http://www.smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf)
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
features in a list of top performing franchises (see http://www.slideshare.net/MohammedShaikh4/2012-top200
) 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 15-35% Returns annually, while regional centers offer measly returns of 1%, but have significant capital losses on exit.
The EB-5 visa investor usually earns solid capital gains of over 30% upon exit, 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 is easier 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 those who refuse to guarantee the following:
1. Full disclosure of all material information.
2. Freedom from fraud and conflict of interest.
3. Full refund of Investor's fees in case you’re rejected by USCIS due to our fault.
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.
Mohammed Shaikh, Licensed RE and Business Broker (CA & FL)
Phone: +1 407 535 0616 Online: http://www.smartbusinessbroker.com Skype:mohammed.shaikh