The EB-5 program is designed to offer foreign investors an opportunity to invest in business opportunities in the United States. The program is viewed by advocates as a win-win situation: investors get to invest and immigrate to the United States on an EB-5 immigration visa and the nation benefits from much needed job creation.
Unfortunately, it doesn’t always work out as planned.
There have been a number of cases of unscrupulous individuals taking advantage of these offerings and putting forward fraudulent investment opportunities. Foreign investors that provide funds for these proposals are bamboozled out of large sums of money and do not receive the visas they believe to be part of the deal.
In an attempt to help protect investors, the NASAA recently published a fraud alert on the EB-5 program.
What is the NASAA?
The NASAA is an international organization devoted to investor protection. The acronym stands for the North American Securities Administrators Association. The organization works specifically with securities and investments, working to protect consumers from fraud.
What does the alert mean?
The alert is specifically designed to protect investors from EB-5 schemes. It points out that investors should be on the watch for red flags. A prime example is a minimization of the risks associated with an investment in a proposed project.
A recent publication by the National Law Review discussed the alert, noting the organization is also encouraging investors to complete due diligence researching a proposal before investing.
What can interested foreign investors do?
Investors that are interested in partaking in this program can still benefit. It is wise to watch for the noted risks and complete your due diligence to avoid becoming the victim of a fraudulent offer.
It is also important to note that this alert may also have negative implications for those who are putting together proposals. As a result, whether looking to invest or put together a proposal, it is wise to seek the counsel of an experienced immigration lawyer. This legal professional will advocate for your interests, working to better ensure a more positive outcome.