"IIUSA does not support requiring certification of securities law compliance by Regional Centers." The reason is obvious: Regional centers violate securites laws!

This is so strange that I couldn't make it up even if I wanted to. For almost a decade, I've been saying it repeatedly that regional centers have actually been committing securities fraud AND violating securities laws, and now IIUSA (the trade association of regional centers) said it quite clearly (see page 2 of the linked document at https://iiusa.org/blog/wp-content/uploads/2015/05/IIUSA-ltr-to-Senate-Judicary-re-DHS-reform-ideas.pdf): "IIUSA does not support requiring certification of securities law compliance by Regional Centers." Even if IIUSA modifies this document, I've still got the originals saved up.

The  question EB-5 visa investors need to ask is, WHY does IIUSA NOT support requiring certification of securities law compliance by regional centers, and yet on the same page claim to support strong enforcement of US Securities law, and not overseas securities laws? The reason is simple: Regional centers usually violate securities laws OVERSEAS and commit securities fraud overseas, due to which regional center owners and executives will usually REFUSE to offer a sworn affidavit that they haven't violated securities laws overseas or committed securities fraud overseas.

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 NO chance of the Regional Centers being extended in the EB-5 visa program (see link at https://www.govtrack.us/congress/bills/114/hr616).

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, and also see the Congressional debate 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. 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

WHY is IIUSA going on a publicity blitz and trying to mislead politicians and EB-5 visa investors with an inaccurate report?

I noticed that the IIUSA recently released a study about the economic impact and contribution of the EB-5 visa program. Nobody doubts that it has had a positive effect, but what IIUSA doesn't seem to be very candid about is the actual number of jobs. Commissioning a report filled with misleading information (and having an MBA in Accounting, I can say this quite confidently) and releasing it 2 years down the line has only 2 motives at this stage: To get more votes in order to prevent regional centers from being kicked out of the EB-5 visa program due to strong pressure from ICE, and to pre-emptively counteract the negative report that will soon be released by the GAO.

The fact is, the report was made up by folks whose core educational focus seems to be forest economics and agricultural economics (see link to check out their credentials http://www.alwardinstitute.org/index.php/about-us)

The "report" ESTIMATES that the SPENDING (and not investment) associated with EB-5 regional center investors contributed USD 3.58 BILLION to the US economy in 2013 and supported over 41,000 jobs. In my opinion, "economists" who actually had any integrity would have actually gone ahead and also clearly stated the actual number of jobs created, and just how much of the money was invested and how much was diverted as commission to overseas visa agents in China and other places. The fact that these "economists" failed to report that 12-25% of the investment is actually diverted elsewhere and not actually invested in a business shows that their research was not thorough.

An economist with integrity would have definitely reported on the low probability of getting a permanent green card if an EB-5 visa investor were to invest in a regional center as well as the almost certain prospect of seeing part if not all of the capital being lost due to investment in a regional center.

The report also seems to have been backdated, as it claims it was based on 2013 data, and I believe a review of USCIS data will reveal that in 2013, the number of regional centers was definitely below 600, contrary to what the IIUSA report claims.

When the report itself starts with inaccurate figures, it does not bode well for the rest of the report.

The reason ICE - HSI opposes regional center renewal in the EB-5 visa program  (which actually IS permanent) is that there is widespread money laundering and securities fraud committed by regional centers.

The reason USCIS FDNS opposes regional center renewal in the EB-5 visa program  (which actually IS permanent) is that there is widespread visa fraud committed by regional center investors.

The fact is, SEC actually advised EB-5 visa investors to avoid regional centers.

The fact is, even DHS chief Jeh Johnson acknowledged the rampant fraud and conflict of interest seen with regional centers.

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 NO chance of the Regional Centers being extended in the EB-5 visa program (see link at https://www.govtrack.us/congress/bills/114/hr616).

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, and also see the Congressional debate 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. 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

What are the consequences for EB-5 visa investors who chose regional centers when the regional center program expires in September 2015?

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 NO chance of the Regional Centers being extended in the EB-5 visa program (see link at https://www.govtrack.us/congress/bills/114/hr616).

I also read one more shocking story of 27 EB-5 visa investors who lost their time and money by making the mistake of investing in a regional center. See story at http://america.aljazeera.com/articles/2015/1/30/chinas-louisiana-purchase-new-orleans-own-battle-of-algiers.html

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, and also see the Congressional debate 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. 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

Sharp increase seen in number of EB-5 visa petitions denied by USCIS at I-526 and I-829 stages

It seems that an increasing number of EB-5 visa investors are seeing RFE's and rejections at both the I-526 and I-829 stages due to increased scrutiny and review of petitions. It is common knowledge that EB-5 visa investors who choose regional centers experience loss of all or part of their capital, but the increasing number of denials shows that regional centers continue to be a bad idea for EB-5 visa investors.

Even DHS Chief, Jeh Johnson, has asked Congress for more powers against regional centers.

The regional center program is expiring in September 2015. It is expected that at least 16,000 EB-5 visa investors will have pending petitions when the regional center program expires. Last year, a bunch of lawyers were asked to opine on what would happen to EB-5 visa investors whose petitions were pending when the regional center program ended (see link http://www.eb5investors.com/qa/what-happen-regional-center-pilot-program-not-extended). The fact is, despite the frantic efforts of regional center supporters who're signing up co-sponsors, there is ZERO chance of regional centers continuing to exist in the EB-5 visa program as per GovTrack: see link https://www.govtrack.us/congress/bills/114/hr616.

Most of these lawyers were unwilling to even contemplate the possibility of this happening even though a similar bill died last year (see link https://www.govtrack.us/congress/bills/113/hr4178) and the current bill is also expected to die due to fierce opposition from investigators from USCIS FDNS, IRS - CID, FBI, SEC, Diplomatic Security Service, ICE-HSI, etc., due to which the official probability of the regional center renewal bill is now 0% (see link https://www.govtrack.us/congress/bills/114/hr616)

The reasons that the regional center renewal bill is Dead on Arrival is due to massive scandals, scams, money laundering and securities fraud violations as well as juicy opportunities for politicians to settle old scores and unprecedented opposition from law enforcement agencies and law enforcement agents. There are at least 2 more regional center related EB-5 visa issues that will soon be coming up, of which one issue that makes it difficult to get the necessary votes is the soon to be released GAO report that is expected to be quite unfavourable for the regional center industry.

The simple question that these attorneys failed to contemplate and answer is: 

Will USCIS approve a petition if on the date of the visa adjudication, the visa category for the petition does not exist any more? 

I will be asking the question myself tomorrow in the USCIS EB-5 stakeholders conference call, and hopefully we shall see some clarity although I suspect that the answer is a no.

The only safe option for EB-5 visa investors is to choose Genuine Direct Investments as it is the only permanent portion of the EB-5 visa program.

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

What happens to over 16,000 EB-5 visa investors who invested in regional centers when the regional center program expires in September 2015?

The regional center program is expiring in September 2015. It is expected that at least 16,000 EB-5 visa investors will have pending petitions when the regional center program expires. Last year, a bunch of lawyers were asked to opine on what would happen to EB-5 visa investors whose petitions were pending when the regional center program ended (see link http://www.eb5investors.com/qa/what-happen-regional-center-pilot-program-not-extended) 

Most of these lawyers were unwilling to even contemplate the possibility of this happening even though a similar bill died last year (see link https://www.govtrack.us/congress/bills/113/hr4178) and the current bill is also expected to die due to fierce opposition from investigators from USCIS FDNS, IRS - CID, FBI, SEC and other agencies.

The official chance is given as 1% (see link https://www.govtrack.us/congress/bills/114/hr616) and the unofficial prognosis for the bill is Dead on Arrival due to massive scandals, scams, money laundering and securities fraud violations as well as juicy opportunities for politicians to settle old scores. There are at least 2 more scandals that will soon be coming of which one is related to the SEC and a whole bunch of lawyers who illegally received commissions, and the other scandal that makes it difficult to get the necessary votes is the soon to be released GAO report that is expected to be quite unfavourable for the regional center industry.

The simple question that these attorneys failed to contemplate and answer is: 

Will USCIS approve a petition if on the date of the visa adjudication, the visa category for the petition does not exist any more? 

I will be asking the question myself tomorrow in the USCIS EB-5 stakeholders conference call, and hopefully we shall see some clarity although I suspect that the answer is a no.

The only safe option for EB-5 visa investors is to choose Genuine Direct Investments as it is the only permanent portion of the EB-5 visa program.

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

State Department announces retrogression of EB-5 visa for Chinese nationals

I read an article online (see link http://www.natlawreview.com/article/department-state-announces-eb-5-retrogression-chinese-nationals-effective-may-1-2015 ) announcing retrogression of visa numbers in the EB-5 visa category to May 2013. This means that only those who filed visa petitions after May 2013 are probably going to have to refile once the regional center program expires in September 2015.

What are the practical effects on EB-5 visa investors who invest in regional centers?
The obvious effect will be the fact that as the regional centers are anyway expiring in September, they will probably need to invest in a Direct Investment Business. Please check with your immigration attorney to get accurate advice. This retrogression only applies till September, as the new visa year and new tranche of visas is available in October. However, as we all know, regional centers are now as good as gone with not even 2% of Congress willing to be associated with the regional center renewal effort.

What are the options available to the Chinese investors?

Chinese investors need to ask their lawyers if an L1A + EB-1C visa would work for them. It is similar to the EB-5 visa, but requires a smaller investment amount and does NOT have the restrictions

Does the retrogression affect citizens of other countries?

NO. As per the State Department, it only affects Chinese citizens.

Who else does the retrogression affect?

It definitely affects regional centers as it seems quite likely that they will never get any EB-5 visa investor funds released to them ever again, as by the time the retrogression is over, regional centers will already be out of the EB-5 visa program.

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

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

How can the EB-5 visa program be reformed? Steps needed to eliminate fraud and abuse in the EB-5 visa program.

The growing scandal of visa fraud, money laundering, securities fraud and securities law violations has effectively sunk the careers of Alejandro Mayorkas and Harry Reid, and is expected to soon sink the political careers of Hillary Clinton and Terry McAuliffe in addition to causing a PR nightmare for Bill Clinton. Senator Grassley has already asked for Mayorkas to be kicked out of the DHS as Mayorkas helped his friends the Clintons, Terry McAuliffe and Harry Reid to fraudulently obtain EB-5 visas for their investors. See Grassley's letter at www.smartbusinessbroker.com/Grassley_demands_Mayorkas_ouster_March_2015.pdf

USCIS figures leave no doubt about the fact that EB-5 visa investors have an approximately 40% chance of getting their permanent green card if they invest in EB-5 visas, and the ICE memo (see the memo at smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf ) that recommends that the regional center program be shut out of the EB-5 visa program is a great first step.

The bill proposed by Jared Polis (HR 616) to extend regional centers in the EB-5 visa program is a terrible idea as it does basically NOTHING in order to protect EB-5 visa investors or the integrity of the EB-5 visa program.

I personally believe that ICE-HSI's recommendation to remove regional centers from the EB-5 visa program is actually a fantastic way to help eliminate fraud in the EB-5 visa program, but in case regional centers do wish to stay in the program, they should be made to adhere to the following guidelines: which would significantly help reduce if not eliminate fraud and abuse in the EB-5 visa program:

1. For the past 7 years, regional centers have illegally offered and sold BILLIONS of Dollars of worthless securities in overseas markets such as China. USCIS and SEC should require that any regional center that offers and sells securities overseas should provide documentation that they are doing so in a lawful manner by providing authenticated evidence of approval to offer securities from the overseas regulator. Any regional center that fails to offer this evidence should see their petition rejected.

2. Require all regional center CEO's to offer sworn affidavits that they do not and will not engage in conflict of interest. Those regional centers whose CEO's refuse to offer this affidavit should be barred from the EB-5 visa program.

3. Require all regional center CEO's to offer sworn affidavits to their EB-5 visa investors that they have fully disclosed and will disclose all material facts on an on-going basis.

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

Upcoming media coverage about massive securities law violations and securities fraud committed by regional centers is expected to sink HR 616 (resulting in removal of regional centers from the EB-5 visa program).

It is common knowledge that regional centers usually violate securities laws overseas in countries such as China, India, Russia, Ukraine, UAE, etc. AND commit securities fraud by failing to disclose material facts to investors.

It is believed that as a follow up to the corruption scandals about Alejandro Mayorkas helping the Clintons, Terry McAuliffe and Harry Reid fraudulently obtain EB-5 visas, we may soon see several news reports that instead of mere cronyism, Mr. Mayorkas actually aided and abetted visa fraud by helping his friends fraudulently obtain EB-5 visas for investors who were statutorily ineligible to obtain EB-5 visas. It is also believed that we may soon end up reading news reports detailing how regional centers and firms such as SLS Casino and GreenTech Automotive violated securities laws in China by illegally offering and selling hundreds of millions of dollars worth of securities without first obtaining permission from CSRC to do so. There is also the matter of regional centers making illegal commission payments, but that is a minor issue compared to the securities fraud, visa fraud and securities law violations committed by regional centers, and that is a massive scandal that will sink the political career of Hillary Clinton in the same way it has already damaged the careers of Harry Reid, Alejandro Mayorkas, Terry McAuliffe, Hailey Barbour etc.

The other issue that will further end up causing more damage to the regional center industry is the fact that the GAO audit is expected to release highly damaging information that will make it harder for politicians to support the regional center renewal bill this year than it was last year.

The final and biggest reason why regional centers are expected to be kicked out of the EB-5 visa program is the fact that not only was ICE-HSI actively recommending that regional centers be removed from the EB-5 visa program (see memo at http://www.smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf ), but now even investigators from other agencies such as DHS - OIG, USCIS - FDNS, SEC, DoS, IRS - CID and FBI are recommending that regional centers be shut down.

As a matter of fact, I can state with confidence that till today, not even one single regional center has legally offered or sold securities in China, India, Korea, Taiwan, Singapore, Russia, Mexico and UAE, and the reason I can do so is because I checked with their regulators that a) American companies including regional centers need approval before marketing or selling securities there, b) they do not have any records indicating that any regional center has sought or obtained approval to market and sell securities in their jurisdictions.

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)

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 all USCIS employees are actively opposing the extension of the regional center program, and are joined by ICE - HSI, DHS OIG, SEC, IRS - CID, etc., 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%

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 for regional center affiliated EB-5 visa petitions as DHS, IRS, ICE, SEC and FBI continue to crack down.

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:

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