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Investors Can Take Action to Help Reduce Risk of EB-5 Fraud

Feb. 13, 2019

There are countless foreign nationals who dream of obtaining a green card and beginning a new life here in New York or elsewhere in the United States. One popular avenue for seeking this opportunity is through the EB-5 visa. Though this program has had its share of allegations regarding EB-5 fraud, investors can take measures that reduce this risk.

Every investment comes with a certain amount of risk. However, when one is investing significant funds and the dreams of a lifetime, the fear of fraud becomes a serious consideration. Foreign investors are encouraged to thoroughly research both the potential project and all of the principals involved. The first step is ensuring an investment project is part of a Regional Center that receives regular oversight and not just approval from federal agencies appointed to safeguard the rights of investors and immigrants.

One of the most important aspects to follow during the five to seven-year approval time for a green card is whether the project meets the employment requirements. Each development project or revitalization plan must provide a minimum of 10 employment opportunities for American citizens. If it fails to meet those targets, then an application can be denied or a green card can be revoked. In addition to ensuring requirements are met, it is recommended that would-be investors conduct a thorough background check on all of the principals in order to ascertain their ability to meet their goals.

Regional Centers should also be thoroughly investigated by potential investors. Furthermore, working with trusted and qualified advisers who are unaffiliated with the project may provide additional assurances of success. Unfortunately, in spite of the care one takes to ensure a sound investment, not every incident of EB-5 fraud can be prevented. New York residents who are concerned about their immigration status regarding their project investment may seek the assistance of an attorney who is skilled in this area of immigration law.