Regional Centers set to expand money laundering as Central Bank of China is all set to increase currency controls due to cash crunch! Another reason for EB-5 visa investors to avoid regional centers!

Chinese EB-5 visa investors in regional centers need to remember that due to the fact that regional centers ILLEGALLY offer and sell securities in China, they have to launder funds to repatriate them to the USA. China has just been hit by a MASSIVE cash crunch (see http://www.bbc.co.uk/news/business-25459444 ), due to which it is expected that the SAFE will impose new capital controls. The only way that regional centers know how to circumvent those controls is by laundering money. It just remains to be seen which regional centers gets to be made the first example by the Chinese Government in the attempt to send a clear message that money laundering will no longer be tolerated by regional centers.

EB-5 visa investors need to remember that Regional Centers are the worst choice due to the fact that they usually engage in securities fraud, money laundering, conflict of interest and securities law violations, and even the premier investigative agency ICE of DHS says (see link http://www.smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf ) that all regional centers need to be shut down as NOTHING can be done to eliminate the fraud that pervades through regional centers.

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 visa. 

 

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 ICE recommends shutting down ALL regional centers.)

 

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 AND 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 20-35% Returns annually, while regional centers offer measly returns of 1% and some partnerships are now known to offer returns of up to 5%, but have capital losses on exit.

The EB-5 visa investor usually earns solid capital gains of over 30% after 3 years, 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 takes about half the time to 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 and ongoing disclosure of all material information.

2.    Freedom from fraud and conflict of interest.

3.    Full refund of your fees in case you’re rejected by USCIS.

 

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.

Yours truly,

Mohammed Shaikh, Licensed RE and Business Broker (CA & FL)

Phone: +1 407 535 0616 Online: http://www.smartbusinessbroker.com  Skype: Mohammed.Shaikh