GAO Audit report means that current and future bills (to be introduced by Issa and Goodlatte) to renew regional centers in the EB-5 visa program are doomed to fail.

I just read an article at http://politicalnews.me/?id=34931&keys=LACK-OVERSIGHT-REGIONAL-CENTER which shows that as expected (and predicted by me since January 2015), the GAO Audit Report on the EB-5 visa program is quite damaging and makes it impossible for the current and planned bills to be introduced by Issa and / or Goodlatte to be written into law. It is quite sad to see politicians receiving money from desperate trade associations knowing that the politicians can't possibly deliver any results.

It is expected that this report shall make a lot harder for HR 616 and HR 3370 to pass, and as it is, GovTrack showed that both bills had no chance of passage. See https://www.govtrack.us/congress/bills/114/hr616 and https://www.govtrack.us/congress/bills/114/hr3370 to get a realistic assessment of each bills chance of passage, which is NONE!

So far, it looks very likely that regional centers shall expire in 6 weeks, and after that only Direct Investment Businesses shall be available as a choice for EB-5 visa investors.

Another major development that may kill the regional center program (which relies heavily on indirect job creation) is a lobbying effort by http://www.maj-a.us/, which was created by the promoters of E3 Investment Group, Marcos Pizza and Voodoo BBQ, etc. They're lobbying Congress to eliminate the indirect job creation category altogether, which would lead to the automatic end of all regional centers, as regional centers are unable to prove even 30% direct job creation. I personally don't think very highly of E3 investment group, Marcos Pizza or Voodoo BBQ due to the fact that I believe the promoters of E3 and Voodoo engaged in conflict of interest, and the Indian marketer of Marcos Pizza may potentially be committing fraud. However, I do agree with them that there are plenty of direct job creation opportunities, due to which the indirect job creation rule should be eliminated from the EB-5 visa program.

From an analytical perspective, the ONLY potential bill that MAY succeed in temporarily renewing the regional center program is S 1501, as HR 616 and HR 3370 seem to have no chance of passage. However, the regional center industry is actively opposing S. 1501, which means that there may potentially be a chance that the regional center program will expire in September 2015, and Direct Investment is probably going to be the only option for EB-5 visa investors.

EB-5 visa investors need to remember that the ONLY safe way to get a permanent green card in the EB-5 visa category is by investing in Genuine Direct Investment Businesses. At present, there is very little chance of either of the regional center extension bills being written into law due to stiff Congressional and law enforcement opposition.

Some of the important reasons that EB-5 visa investors should ALWAYS choose Genuine Direct Investment Businesses and avoid regional centers are:

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 Voodoo BBQ 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 see 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. 

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