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Kushner company investigation over possible EB-5 fraud

In 1990, the federal government was seeking avenues to obtain more funding for development projects in the poorer economic regions of the country. From those efforts, a new visa program was started that allowed foreign investors an opportunity to obtain a visa through investments in projects that provide a minimum of 10 jobs for current residents. Unfortunately, the program has since been the target for a few unscrupulous developers who have engaged in EB-5 fraud and misappropriated monies meant for specific projects, possibly including some here in New York. 

Jared Kushner is the son-in-law of the current president and holds a position as a senior advisor in the current administration. Though he has stepped down as the president of a real estate company based in New York, he still has an interest in the company. The SEC recently announced that it is conducting an investigation into the business' practice of using funding from the EB-5 visa program for several projects both here and in a neighboring state.

There have been allegations that the company has misrepresented its investment opportunities by exploiting its connection to the current administration. There were promotional materials that were distributed during presentations in foreign countries that may have appeared to take advantage of Kushner's relationship to the president. Along with the SEC investigation, federal prosecutors are likewise looking into the company's use of the visa program.

On its part, the company has denied any wrongdoing and claims it ceased using any materials that may have been deemed inappropriate in its marketing pitches to potential investors. Along with these investigations, there is another one that is focused on a foreign financial institution that has conducted business with the company in the past. New York residents who have invested in this program and are concerned that they may have been a victim of EB-5 fraud may seek the services of an attorney who can help protect their rights and determine the best approach to resolve the situation.

Source: nymag.com, "SEC Investigating Kushner Family Business Over EB-5 Visa Use", Chas Danner, Jan. 7, 2018

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