SEC’s recent enforcement action under EB-5 has allegedly led to hundreds of millions of dollars losing investment, including claims that regional centers and operators were muddling, fraud, error in their representation, and self-handling.
Under the current law, the required amount of investment is $900,000 or 1,800,000. The investment amount necessary for the EB-5 program depends on the location where investment is made. If you believe that you have been the victim of such a scam, please contact us.
Investors outside of the U.S. apply to “regional centers” for the EB-5 program to invest money into projects in exchange for visas or residency in the U.S. The regional centers are sponsoring EB-5 investor capital ventures. Foreign investors want to provide valid investment opportunities that qualify for EB-5 in regional centers.
However, the U.S. government departments usually do not argue for validity. Other firms advertise themselves as qualifying investments under EB-5 without being a regional center. These companies collect and take advantage of foreign investors’ capital. This grant does not contribute to job creation or the U.S. economy and is thus not available for the EB-5 Immigration Programme. There will be no capital for foreign investors and no means of applying in the United States.
The EB-5 immigrant investor program is a program through which those who have made a certain amount of investment and have created jobs by the means of investment can obtain a U.S. green card and reside in the United States.
Regional centers are companies that are authorized to develop a specific area. These companies aggregate investors’ funds and allocate them to their projects. Should investors manage to acquire a permanent green card, these companies will return investors’ investment funds in cash or by offering them share ownership in the company, an issue which hinges on the terms of the agreement.
A seasoned veteran in the EB-5 space, Taher Kameli gained substantial insight into the inner workings of EB-5 Regional Centers. Quickly seeing the appeal of the EB-5 immigation program, Mr. Kameli began helping families through the process of immigration by investment in 1996. Unfortunately, after spending over twenty years in the space and facilitating numerous projects, Mr. Kameli has witnessed just how quickly a good project can turn bad. While many projects fail due to uncontrollable circumstances, an equal amount ends up failing due to regional center malfeasance. Mr. Kameli has first-hand experience with how a project can quickly run afoul of the strict disclosure and operational requirements with which regional centers must comply. Having spent decades working with regional centers, including seven years fighting the SEC, Mr. Kameli leverages his insider knowledge to help immigrant investors try to recover their funds when regional centers cross the line. Whether the result of insufficient disclosures, misrepresentations, deviations, or fraud, Taher Kameli has both the experience and drive to help make you whole.
“In June 2016, the SEC filed a complaint against Xin “Lisa” Wang and Charles C. Liu for misusing investors’ money that was raised for the purpose of building a cancer treatment center. According to the complaint Wang and Woo raised more than $27 million from Chinese EB-5 investors to build a center that would treat cancer through proton beam radiation. After 18 months of raising funds, no construction took place at the proposed site and Liu transferred $11 million of investor funds to firms in China and diverted another $7 million of investor funds to his wife’s personal account.” – https://www.sec.gov/litigation/litreleases/2016/lr23556.htm
“In September 2018, the SEC settled charges with an Illinois-based regional center CMB Export, its CEO Patrick Hogan, and 37 affiliated limited partnerships related to securities issued under the EB-5 Immigrant Investor Program. Between 2011 and 2015, the entities affiliated with CMB Export LLC offered EB-5 securities in the form of limited partnership interests without registering them with the SEC and without a valid exemption from registration.
The order found that Hogan paid transaction-based compensation to U.S. individuals and entities for soliciting foreign investors to purchase these securities. The order also requires CMB Export to pay a $5.15 million penalty, Hogan to pay a penalty of $515,000, and each of the 37 CMB limited partnerships to pay a penalty of $160,000, for total monetary relief of $11.585 million” https://www.sec.gov/news/press-release/2018-208
“Between April 2014 and March 2017, Edwin Shaw LLC solicited foreign nationals to invest in securities issued by a taxi and limousine company based in Queens, New York. The investments were marketed to investors interested in applying for legal residency through the federal government’s EB-5 Immigrant Investor Program, which provides a path to legal residency for foreigners who invest directly in a U.S. business or private “regional centers” that promote economic development in specific areas and industries.
According to the SEC’s order, Edwin Shaw was not registered with the SEC as a broker or dealer when it engaged in the solicitations and otherwise effectuated these securities transactions, thereby violating Section 15(a) of the Securities Exchange Act of 1934. For each successful investment, Edwin Shaw received a fee ranging from $5,000 to $50,000. More than 30 foreigners invested in the program after solicitations by Edwin Shaw, which improperly used approximately $400,000 of the investor fees on its own expenses and personal expenses of Edwin Shaw’s principal”.- https://www.sec.gov/news/press-release/2018-30
“The Securities and Exchange Commission today charged a Chicago-based immigration attorney with defrauding investors participating in the EB-5 immigrant investor program by improperly commingling and misusing a portion of the approximately $88.7 million raised.
The SEC alleges that Seyed Taher Kameli and his companies, Chicagoland Foreign Investment Group, LLC and American Enterprise Pioneers, Inc., falsely claimed to at least 226 foreign investors that each of their $500,000 investments would be used to help construct a specific senior living project in the Chicago area or Florida and create at least 10 permanent full-time jobs within that project. This would qualify each investor for a potential path to permanent U.S. residency through the EB-5 program.” – https://www.sec.gov/litigation/litreleases/2017/lr23866.htm