I predicted the controversy that will sink the careers of Alejandro Mayorkas and Harry Reid, and today marked the beginning of their end.

About 2 months ago I'd predicted that Alejandro Mayorkas and Harry Reid will soon end up in trouble (see link http://eb5-expert.blogspot.com/2015/02/you-read-it-here-first-alejandro.html and http://eb5-expert.blogspot.com/2015/01/is-mayorkas-going-down-for-aiding-and.html), and today we see that they're in the middle of a controversy that will snowball into a major Congressional investigation and possible prison terms for both of them.

Similarly, I'd also predicted that HR 616 will fail and we are already seeing media stories and controversies all over the news, and these stories show that regional centers will be removed from the EB-5 visa program in September 2015 due to widespread overt and covert opposition by investigators from DHS OIG, ICE - HSI, USCIS - FDNS, FBI, IRS - CID, Dept. of State, SEC, etc.

The full DHS OIG report is available for review at http://www.smartbusinessbroker.com/DHS OIG EB-5 Report March 2015.pdf

You can read the DHS OIG report on regional centers at http://www.oig.dhs.gov/assets/Mgmt/2014/OIG_14-19_Dec13.pdf

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 http://www.sec.gov/investor/alerts/ia_immigrant.htm

You can read the ICE memo at http://www.smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf 

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. 

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  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 (Acctg), CFE, Licensed Business & RE Broker (CA & FL)
Online: http://www.smartbusinessbroker.com Phone: +1 407 535 0616