Sources of information on the EB-5 Visa

 

We are working on the final chapters of our book on the implications of investing in the EB5 regional center program. As part of our research we looked at the information currently available to immigrants undertaking due diligence into the various regional centers. We have become aware that all may not be what it seems.

 

 

In many ways the internet is now the first point of information for many people. However, all too often, all is not what it appears to be at first sight. 

 

Among the problems we have come across are –

 

Sites that appear independent and seem to provide impartial and useful information, often with some legal explanations. However, after doing extensive source checks, we have uncovered some sites where the information presented is actually related to one specific center. There would be nothing wrong with this if this was made clear to the reader that the site is actually focused on a particular center –remember sites tend not to criticize their own schemes!

 

Self help advice from individuals own sites, some of whom are in the process of applying for the EB5 others from emigrants trying to be helpful. The problem here can be that everybody has different requirements. Assuming that the circumstances relating to someone else’s decision process mirrors your own requirements can be dangerous.

 

Immigration blog sites can seem particularly helpful and the chatty exchanges seem reassuring. Having researched these in depth we have concerns that they can contain some potential dangers. After all, at least if you read a company website you know what to expect (i.e. it is unlikely to offer the negatives of their own program), whereas reading an expat blog you tend to assume sound, honest advice. We came across one site which contained a thread highlighting fears of scams regarding the EB5 which in some ways were good and clearly adds credibility to the sites information. A question was raised on that thread regarding a particular individual/agent and a subscriber responded by giving feedback of their positive experience with them. If anyone had taken that advice they would now have serious problems as the person concerned is under investigation by three law enforcement agencies following alleged missing millions of immigrant funds! The advice given was probably honest, genuine, and of good intent but it highlights the need to know the whole picture, rather than one person’s experience.

 

Some immigration web sites seem to offer sound advice, although on further investigation it is evident they HAVE NOT VISITED THE REGIONAL CENTERS and have simply plagiarized information from other sites (we are presently initiating action against two such sites).

 

 

 

A number of immigrants considering relocation to the USA find it useful to go to an emigration exhibition. These can provide an opportunity to obtain information from presenters identified as experts and the opportunity to talk to a number of the exhibitors.

 

There is a perspective that by talking to stand holders at exhibitions gives a feeling of insurance as presumably they have been checked out by the exhibition organizers, particularly if the organizers are a well known magazine or promoter.

 

It needs to be remembered however that exhibition organizers do not always have the facilities to check out all the companies who are exhibiting and in the past this has led to occasional problems with rogue traders.

 

Currently there are investigations by the FBI into allegations against New Horizons and Derrick Coles regarding missing escrow funds. This company presented free emigration and property seminars and also featured at a number of emigration shows for several years, giving advice at the invitation of the organizers as expert speakers. Following recent developments an article in a local UK newspaper alleged a history of problems which a comprehensive background check could have exposed, see the following article: www.derickcoles.com/Images/lymingtontimes.pdf

 

Sadly we have been made aware of a number of other problems arising from information given at exhibitions subsequently involving scams or false information. Emigrants have applied for visas through an illegal scheme losing not just the opportunity for a visa, but also their life savings. Although there have subsequently been prosecutions and TV coverage warning others, these have not helped the unfortunate victims. 

 

Although these issues affect only a small minority of emigrants they obviously have a devastating impact on the victims.

 

 

 

Magazine articles can be another favored source and as we have mentioned all may not be as it seems. Over the years we have written articles for a number of magazines and newspapers as well as being invited as specialists to write regular reader advice responses. We are presently finalizing books on the EB5 visa and relocation to the USA and as part of our research have analyzed several hundred related articles from magazines and newspapers.

 

The biggest trap immigrants researching options fall into when reading magazine articles is failing to ask themselves who wrote this article, why and what the intention behind it is. Magazines and newspapers generally receive income from two sources – readers who buy the magazine and advertisers who pay to be in it. Although editors generally protect their independence they may upset their advertisers in doing so.

 

The result of this conflict of interest became evident to us when reviewing some publications focusing on emigration –certain articles on the EB5 visa were written by the very companies also advertising particular EB5 programs in the magazine. Further analysis of these companies that appeared to be presented as knowledgeable experts in the magazine, showed that at the time of writing they had processed few if any EB5 regional center visas.

 

From a reader’s perspective it can be easy to assume emigration articles are a safe, impartial and even learned source of information, perhaps not.