Great example of why EB-5 visa investors should use our firm to go with Direct Investments instead of dishonest firms marketing regional centers.

I just reviewed the website of a regional center marketer Mr. Xavier Augustin of Y-Axis (see link http://www.theeb5visa.com/)and noticed it provided a superb opportunity for us to highlight why EB-5 visa investors should choose our firm to apply for an EB-5 visa.

Our competitors charge USD 50,000 for the regional center's administrative fees that are used to pay the commission for the marketing agents. This administrative fee is on top of the USD 500,000 investment. They also charge $20,000 for the attorney fee and offer no fee refund guarantee in case the petition is denied. They lie to EB-5 visa investors that petitions would be approved in 6-8 months, when the truth is, it takes about 14 months to get an EB-5 visa petition approved. They falsely implied that investors will get their funds back with good returns "Apply now for the EB5, and five years later, when your money comes back – with returns – you will realize that you certainly made the wisest decision in your life." when the fact is, those who invest in regional centers usually experience capital losses AND get low or no returns." This is wrong on several fronts as a) it is against USCIS regulations to promise a return of capital, b) Those who invest in regional centers usually see loss of part or all of the capital, c) They offer terrible value for money, d) Their exit strategy is terrible and e) They usually offer terrible return on investment on top of charging absurdly high fees.

In contrast, those who invest in Genuine Direct Investment Businesses usually earn ROI's that are significantly larger than the measly returns offered by regional centers, and capital losses are quite uncommon in Genuine Direct Investment Businesses in contrast to regional centers, where capital losses are the norm.

As it is, regional centers will cease to exist after September 2015 due to massive pressure on politicians by investigators and prosecutors from multiple agencies as well as the recent scandal involving Alejandro Mayorkas, who helped at least 3 regional centers fraudulently obtain EB-5 visas. The legislative impact of this scandal is that the bill to extend the regional center program is dead in the water as it has become a political hot potato, and IIUSA + Greenberg Traurig will again fail to get it passed this year as they failed to get it passed last year. (see the independent bill tracker https://www.govtrack.us/congress/bills/114/hr616). Even last year Congressman Polis tried to extend the regional center program, but could not succeed, and this year looks like the same story as few politicians wish to be openly associated with supporting such a scandal ridden program.

The full DHS OIG report is available for review at http://www.smartbusinessbroker.com/DHS OIG EB-5 Report March 2015.pdf and EB-5 visa investors can read it to understand that due to the fact that USCIS employees are actively opposing the extension of the regional center program, and are joined by ICE - HSI, DHS OIG, SEC, IRS - CID, etc., which means that the practical chances for the extension of the regional center program are zero percent and the theoretical chances for the extension of the regional center program are 1%

The DHS OIG report on regional centers is at http://www.oig.dhs.gov/assets/Mgmt/2014/OIG_14-19_Dec13.pdf

Even the SEC has 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

The ICE memo recommending a complete ban of regional centers can be seen 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 will 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 for regional center affiliated EB-5 visa petitions as DHS, IRS, ICE, SEC and FBI continue to investigate fraud and money laundering.

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

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:

A.     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.

B.      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. 

C.      Regional Centers usually commit securities fraud and securities law violations while this is usually unheard of in Genuine Direct Investment Businesses. 

D.     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. 

E.      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. 

F.      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: http://www.smartbusinessbroker.com Phone: +1 407 535 0616