Friday, March 27, 2015

Growing EB-5 visa scandal causes Harry Reid to decide to retire, and it looks like Mayorkas is next and Hillary Clinton's campaign is affected too. (HH, JTAB)

Senator Harry Reid has announced that he will retire and won't run for re-election as news emerged that his lobbyist son Rory Reid was representing Sam Nazarian's SLS Casino at the same time he was having Alejandro Mayorkas pressurize DHS employees to illegally approve EB-5 visas for SLS Casino in a clear violation of ethics rules. See link and opinion of a former US Attorney at

The obvious attention of Congressional investigations will now be on Alejandro Mayorkas and Bill Clinton, and the result is that not only H.R. 616 (the bill to permanently extend regional centers) but even Hillary Clinton's campaign are in serious trouble, as photos have emerged of Bill Clinton marketing GreenTech Automotive, which was the business that was headed by Terry McAuliffe, and funded by GCFM (that was headed by Tony Rodham). The problem with GreenTech Automotive is the same problem faced by SLS Casinos, as they both illegally marketed and sold securities in China, laundered over ONE HUNDRED MILLION Dollars each, violated securities laws in China, committed securities fraud and also fraudulently obtained EB-5 visas for their investors in an unlawful manner. It is surprising that some Greenberg Traurig Attorneys feel that H.R. 616 still has a chance of being passed, when ICE-HSI, IRS - CID, USCIS FDNS, FBI, SEC and Dept. of State investigators are actively opposing the bill. As a matter of fact, the first Congressional hearing was held yesterday (see link ) and many more hearings are expected.

The DHS recently released a report on the investigation of fraudulent conduct by Mayorkas, and Congress is looking at the fact that the DHS OIG report is incomplete. 

The full DHS OIG report is available at OIG EB-5 Report March 2015.pdf and EB-5 visa investors can read it to understand that due to the fact that all USCIS employees are actively opposing the extension of the regional center program, and are joined by ICE - HSI, DHS OIG, SEC, IRS - CID, etc., the practical chances for the extension of the regional center program are zero percent and the the theoretical chances for the extension of the regional center program are 1% (see the independent bill tracker to confirm that the chances for the extension of the regional center bill are basically slim to none)

You can read the DHS OIG report on regional centers at

SEC has also advised EB-5 visa investors to avoid regional centers due to the fact that securities fraud is quite common in the regional center program. See the SEC memo at

In practical terms, this means that those EB-5 visa investors whose petitions were not approved by September 2015 may probably have to re-apply under the Direct Investment Program, and this will significantly help boost the EB-5 visa program by eliminating the fraud and conflict of interest seen in the regional center program. It would also help increase actual employment in the US as opposed to the hypothetical numbers seen in the "indirect employment" model given to regional centers.

The upcoming EB-5 visa stakeholder's conference is expected to show a continuing trend of growing backlog of petitions, very long approval times and increased denial rates. I believe over 10,000 EB-5 visa investors will very soon become intimately familiar with the money laundering statutes that authorize the seizure of ALL assets and funds, and not just the invested funds of an EB-5 visa investor.

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  Even the SEC warns EB-5 visa investors to avoid regional centers.

EB-5 visa investors need to remember that the ONLY safe way to get approved is through Genuine Direct Investment Businesses.

Here are some of the critical reasons that EB-5 visa investors should ALWAYS choose Genuine Direct Investment Businesses and avoid regional centers:
·         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 Voodoo or Marcos Pizza), while those who opt for Genuine Direct Investment Businesses usually NEVER experience capital loss.
·         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.
Genuine Direct Investment Businesses offer easy exit strategies to EB-5 visa investors while those who invest in regional centers experience TERRIBLE exit strategies. 
·         Regional Centers usually commit securities fraud and securities law violations while this is usually unheard of in Genuine Direct Investment Businesses. 
·         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. 
·         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. 
·         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. 

If you are a business owner or high net worth individual interested in migrating to the US using EB-5 visa or L1A + EB-1C visa, please contact us for a free consultation. We offer a turnkey solution and have a 100% fee refund guarantee if a client is denied due to our fault.

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

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