The USCIS has issued the final EB-5 Adjudications Policy memorandum on uscis.gov. The memo emphasizes the importance of flexibility and has renewed confidence in the EB-5 program. Dawn Lurie does an excellent job sharing the highlights of the memorandum. The EB-5 Adjudications Policy memorandum acknowledges that the adjudication of EB-5 petitions and applicants is based on preponderance of evidence standard, offers that the “petitioner or applicant does not need to remove all doubt f...
Big Implications of Final Policy Memo
According to Suzanne Lazicki, the EB-5 Adjudications Policy Memorandum “has some nice clarifications on issues like escrow outside the US and bridge financing, keeps a few of the mysterious provisions from the previous version, and drops one major bomb regarding the nature of Regional Centers.”
Jun032013
More Cautions About New EB-5 Policy Changes
Joseph Whalen June 03, 2013 comments Regulatory
Joseph Whalen urges caution and study before jumping on a particular policy change. Even though the USCIS will allow for certain issues to be altered without the demand for an I-924 Amendment, you must be sure you are clean on which is which. “Make sure to reconcile the Policy with the controlling statues and regulations.” Read More.
Jun032013
Publicity and EB-5 Offerings: What on Earth Are You People Doing?
Sara Hanks June 04, 2013 comments Regulatory
I’m new to the EB-5 world. What I’m seeing here almost makes me want to run screaming back to my old world, where I practiced corporate and securities law (including at the SEC) for 30 years. How are you getting away with violating the securities laws? I’m seeing violations of Section 5 of the Securities Act all over the place and this has serious implications for the success of the projects that are being funded by EB-5. Let’s start with some legal fundamentals: The term “security” ...
Jun042013
Lessons I Learned From My First EB-5 Capital Raise: A Developer’s Perspective
Vantage Pointe Investments, developers of assisted living communities and luxury apartment communities throughout the Southeast, had utilized conventional funding for capital stack needs in much the same manner and from most of the same types of sources used by all developers. When the economy began changing in 2008, we began looking for alternate sources of debt as well as equity. We were introduced to the EB-5 world by happenchance shrugging it off as likely just another government program ...
Feb212013
EB-5 Regional Center Payments to Chinese Emigration Agents
Steven Blayney February 13, 2013 comments Regulatory
Implications under the U.S. Foreign Corrupt Practices Act by STEVEN BLAYNEY, Esquire It has been alleged that in some cases some EB-5 regional center projects, in order to gain a competitive advantage in the Chinese market, may pay substantial commissions to Chinese emigration agents in China without informing Chinese investors of such commissions. In the case of the controversial Chicago Convention Center SEC case, it has been alleged that some Chinese emigration agents in Ch...
Feb132013
SEC DISCUSSES EB-5
USCIS & SEC Hold Intra-Agency Conference Call on Securities Issues Related to the EB-5 Investor Visa Program U.S. Citizenship and Immigration Services (USCIS) and the Securities and Exchange Commission (SEC) invited interested individuals to participate in a stakeholder teleconference to discuss the EB-5 Immigrant Investor Program. It was held April 3, 2013. During the engagement, subject matter experts from the SEC discussed securities law compliance in the context of EB-5 regional c...
Apr302013
EB-5 Stakeholder Meeting Executive Summary
The Office of the Citizenship and Immigration Services Ombudsman (Ombudsman's Office) held a stakeholder meeting on the EB-5 Immigrant Investor Program on March 5, 2013. Opening Remarks Ombudsman Maria Odom began her remarks by emphasizing that the purpose of the meeting was to discuss solutions to challenges in the EB-5 Immigrant Investor Program. She noted that the EB-5 program can be an engine of economic growth and spur job creation. Ms. Odom reported the following: Tod...
Mar222013
Group Holds Roundtable Discussions on Securities Best Practices
Group Holds Roundtable Discussions on Securities Best Practices with U.S. Regulatory Agencies & Dept. of Commerce Following the IRCTC action and an increased concern about the practices of raising capital by unregistered firms and persons, fraud and misrepresentation in the EB-5 program, a group of securities attorneys, broker dealers and investment advisors met with officials and regulators with the Securities & Exchange Commission (SEC), Financial Industry Regulatory Authority (...
Apr232013
How EB-5 Regional Centers and Sponsors can Evaluate Broker-Dealer, Investment Company and Investment Adviser Registration Requirements Under U.S. Securities Laws
Catherine Holmes & Victor Shum August 13, 2014 comments Regulatory
Part I: EB-5 Offerings Do Not Fit Standard SEC Registration Requirements by Victor Shum & Catherine D. Holmes The SEC has not provided clear guidance on how to comply with U.S. securities laws requiring registration as a securities broker-dealer, investment company or investment adviser when conducting EB-5 offerings The U.S. Securities and Exchange Commission (SEC) has stated in open meetings with the United States Citizenship and Immigration Services (USCIS) and the Association to...
Aug132014
SEC Charges Private Equity Firm, Former Executive, and Consultant for Improperly Soliciting Investments
On March 11, 2013, the Securities and Exchange Commission announced charges against New York-based private equity firm Ranieri Partners, a former senior executive, and an unregistered broker who violated securities laws when soliciting more than $500 million in capital commitments for private funds managed by the firm. The federal securities laws require that an individual who solicits investments in return for transaction-based compensation be registered as a broker. An SEC investigat...
Mar212013