Will S. 1501 cause most regional centers to be kicked out of the EB-5 visa program?

It looks like Senator Grassley and DHS Chief Jeh Johnson are having a good laugh over the dog and pony show they've put up. First Jeh Johnson wrote to Senator Leahy and Senator Grassley in April 2015 to make changes to the EB-5 visa program, and then these same senators introduce a bill (see link at https://www.govtrack.us/congress/bills/114/s1501/text) purportedly incorporating these changes, to "renew" the same regional center program with a few major headaches for the smaller regional centers. It basically looks like the bigger regional centers are trying to use legislative influence to kick out the smaller regional centers.

 The problem is, many in the law enforcement community oppose this bill as it does not do much to prevent the money laundering and illegal offering and sales of regional center securities overseas, and is just favouring the larger regional centers over the smaller ones, which will probably lead to serious infighting in the IIUSA (which is the regional center trade association). 

As predicted for the past few months, HR 616 is all but dead as Congressman Jared Polis failed TWICE in a row to get Congressional approval to extend the regional center program, due to which the major regional centers are now using Senators to get approval to extend regional centers in the EB-5 visa program and simultaneously squeeze out the smaller programs. The question that now faces regional centers (with less than 4 months to go) is whether they will come up with enough Senators who're foolish enough to vote against the wishes of hundreds of investigators from over a dozen federal law enforcement agencies.

The only obvious beneficiaries are EB-5 visa investors who choose to invest in Direct Investment Businesses. EB-5 visa investors need to remember that the ONLY safe way to get approved is through Genuine Direct Investment Businesses. Considering the fact that legislation is gridlocked in D.C. and due to existing and upcoming scandals as well as opposition by Jeh Johnson (head of the DHS), ICE-HSI and dozens of law enforcement agents, it is the opinion of legislative analysts that there is now little chance of the Regional Centers being extended in the EB-5 visa program (see link at https://www.govtrack.us/congress/bills/114/hr616 and also https://www.govtrack.us/congress/bills/114/s1501 for actual probability).

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 http://www.smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf.  Even the SEC warns EB-5 visa investors to avoid regional centers. See link http://www.sec.gov/investor/alerts/ia_immigrant.htm

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 BBQ 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, 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