Friday, January 30, 2015

The "American Entrepreneurship and Investment Act of 2015" introduced by Jared Polis has no chance of passage.

Regional Center owners as well as their partners in crime failed in their attempt to get regional centers extended in the EB-5 program last year and are once again trying to get the regional center program extended, but this year looks to be the last year that regional centers will be in existence due to the following reasons:

  1. Several law enforcement and government agencies such as IRS, SEC, DOS, ICE, USCIS, FBI, etc. are all vehemently opposing such an extension and are actively lobbying to get regional centers kicked out of the EB-5 visa program.
  2. Republican Senators want payback against Harry Reid for the unusual and borderline illegal Alejandro Mayorkas appointment, and this is the ideal opportunity for them to kill 2 birds with one stone by showing the fraud committed by regional centers with Mayorkas' help in order to kick out Mayorkas AND permanently scuttle Harry Reid's career. 
  3. GAO is conducting it's own separate investigation into the irregularities and efficiency of regional centers in the EB-5 visa program, and the result is expected to be extremely unfavourable.
  4. The rejection rate for EB-5 visa applicants seems to be rising as the money laundering probe seems to gain traction, and this is weakening even major regional center operators and is expected to crush the newer and smaller regional centers.
  5. SEC, Dept. of State and GAO are all expected to introduce their own proposals that are expected to effectively make it impossible for regional centers to survive.
  6. Three very powerful Senators who were publicly opposed to regional centers are now sitting in crucial posts and are expected to kill the bill in committee itself, and prevent it from coming up for a vote. In addition, there are at least 8 and probably 11 more Senators who're quietly opposing the regional center extension and suddenly the odds don't look so great for the bill. As a matter of fact, GovTrack gives the bill a VERY LOW 2% probability of passage (see link at, and I personally think that those folks are being generous. In DC's poisonous atmosphere, it is close to impossible for the bill to pass, and regional center marketers and executives may be committing securities fraud if they fail to disclose this important fact to EB-5 visa investors.
EB-5 visa investors need to remember that the ONLY safe way to get approved is through Genuine Direct Investment Businesses, and they should avoid regional centers not only due to the fact that they are about to get kicked out of the EB-5 visa program, but also due to the rampant fraud, securities law violations and conflict of interest seen in regional centers and risky investments such as E3 Investment Group, Voodoo BBQ, Marco's Pizza, Twistee Treat, etc.

EB-5 visa investors now know and understand that Genuine Direct investment businesses are the safest option for EB-5 visa investors in every single respect. 

Here are some of the critical reasons that EB-5 visa investors should ALWAYS choose Genuine Direct Investment Businesses and avoid regional centers:
  1. In a Genuine Direct Investment Business, it is quite unusual to encounter fraud or conflict of interest. This alone is THE biggest reason why EB-5 visa investors usually experience capital loss if they opt for regional centers or unsafe Direct Investments (such as Twistee Treats or Voodoo or Marcos Pizza), while those who opt for Genuine Direct Investment Businesses usually NEVER experience capital loss. 
  2. EB-5 visa investors who choose Genuine Direct Investment Businesses usually earn annual ROI of 15% to 40%, while those who select regional centers usually earn 0-2% annual ROI. 
  3. Genuine Direct Investment Businesses offer easy exit strategies to EB-5 visa investors while those who invest in regional centers experience TERRIBLE exit strategies. 
  4. Regional Centers usually commit securities fraud and securities law violations while this is usually unheard of in Genuine Direct Investment Businesses. 
  5. EB-5 visa investors usually get capital gains if they invest in a Genuine Direct Investment Business and almost NEVER get capital gains if they invest in a regional center. 
  6. EB-5 visa investors in Genuine Direct Investment Businesses usually see faster processing and approval of their petitions, while it takes much longer for EB-5 visa investors to get their immigrant visa through regional centers.  
  7. EB-5 visa investors in Genuine Direct Investment Businesses have a higher chance of getting their permanent green card, while those who opt for regional centers have a lower chance of getting their 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.
Many immigration attorneys and so-called due diligence "experts" fail to disclose important facts to investors. One such set of facts is that it takes 3 years to get a temporary green card and an additional 30+ months to get a permanent green card in EB-5 visa category, while investors can get a permanent green card in less than 2 years with EB-1C category visas.

The advantages of EB-1C over EB-5 visas are as follows:

1) Very little chance of fraud, compared to rampant fraud seen in regional centers in the EB-5 visa program.

2) Significantly lower investment amount. In EB-5 visa, a minimum investment of $500,000 is needed, whereas I've had clients get approved with even $350,000 investment in EB-1C visa category.

3) There is total flexibility about location: EB-1C visa investors face no restrictions about location, whereas EB-5 visa investors see significant location based restrictions if they invest only $500,000, and investors have to invest minimum $1 Million to avoid location based restrictions.

4) The EB-5 visa program has onerous proof of fund requirements, whereas the fund documentation requirements are definitely not as stringent in EB-1C visa program.

5) The job creation requirements are a lot more onerous in EB-5 visa, and I've seen that creating even 4 jobs suffices for an EB-1C visa.

6) Unlike the EB-5 visa program, there is no conditional green card in EB-1C visa program.

7) The time to get a permanent green card under EB-1 visa program ranges from 1-2 years, whereas it takes almost 5 years to get a permanent green card under EB-5 visa category. Business owners & executives can immediately move to the US on L1A visa, and get their green card in hand within a matter of months, whereas EB-5 visa holders have to wait for about two years to just get a temporary green card.

Keeping the above factors in mind, most investors are now choosing to go with EB-1C visa as it is a lot cheaper, faster, safer and easier to get compared to the EB-5 visa.

If you are a business owner or high net worth individual interested in migrating to the US, please hire our team. We offer a turnkey solution and have a solid track record of success, as we believe in delivering results and not excuses to our clients. That is why we have a 100% fee refund guarantee while our competitors usually don't offer such a guarantee.

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

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