The EB-5 investor-visa program saw its largest-ever settlement last week — $150 million in the Jay Peak ski resort case — and the receiver for that matter, Akerman LLP's Michael Goldberg, told Law360 in a wide-ranging interview he's hoping Congress will change the program to provide more relief to victims of fraud.
Goldberg, who has helped draft proposed changes to EB-5, said one of the major problems with the current program is that it forges too strong of a link between the investor and the developer, and when that chain is broken, as happened at Jay Peak, it becomes difficult for investors to come away with a green card, which for most is the primary investment objective.
Currently, EB-5 investors commit as little as $500,000 to a project and, assuming the project creates 10 jobs per investor, the investor comes out of the deal with some minimal investment gains and a green card.
The program, which will expire at the end of April unless Congress extends it, has various proposed changes on the table, including raising the minimum investment threshold, increasing the 10,000-visa-per-year quota and changing the way the quota is defined such that dependent visas are not counted.
Read more by clicking below image