As part of our ongoing due diligence we recently identified significant potential problems  on a particular EB5 program, this reinforces one of our ongoing concerns that some families focus only on the legal implications of the visa and seek minimal advice or ask the wrong questions on the investment implications.

All too often clients start by asking which particular program gives the highest investment return; this is not only the WRONG QUESTION TO ASK it can also be extremely dangerous.

With so many regional centers offering the EB-5 pilot program, up to 49 at the latest count,  it is inevitable issues would  arise sooner or later particularly with some investors from counties where English is not their first language. Frequently these families are reliant on local sales agents representing only one or two programs and it is possible that a significant number of investors do not realize the potential weaknesses of the program they entered.

A regional center that has, according to a recent report, run into problems, sold extensively in Asia with legal advice focused mainly on obtaining the visa. The majority of investors failed to obtain separate independent advice of any other options and the investment implications of the center in question. The problem now is not only do they stand to lose all or part of their $500,000 investment by making an inappropriate decision on their program of choice, but also their right to stay in the USA if the project fails and the jobs are not created.

As part of our due diligence process we monitor programs closely to identify issues. Being aware of what is happening at the regional centers is very important and pretty much impossible to do if you are several thousand miles away, possibly relying on a local sales agent or an attorney focused specifically on just the legal emigration question as opposed to the potential investment repercussions.

The potential problems with this particular center, as well as the earlier cases of alleged fraud by a visa consultant, (currently being investigated by the U.S. Secret Service) emphasize the importance of seeking independent advice before selecting a center. There are some excellent programs available and the EB5 visa is for many both the fastest and perhaps the only option for permanent residency, but obtaining impartial advice is critical.

For questions and answers on your personal EB-5 options and choices please contact Which EB5 directly.