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Tag: EB – 5

An EB-5 Regional Center is an organization designated by United States Citizenship and Immigration Services (USCIS) that sponsors capital investment projects for investment by EB-5 investors. The major advantage for regional center designation is that the regional center can take advantage of indirect job creation.

EB-5 applicant invests $500,000 into a regional center, and If the process goes smoothly, the entire family could receive their green card in about 12 to 14 months. The money is held for around six years, each year the EB-5 investors are supposed to receive a yearly return on their investment

Is there fraud in the EB 5-regional center programs?

There are some regional centers that have a questionable background and questionable track record. In fact, 2013,the U.S. Securities and Exchange Commission (SEC) announced that The U.S. District Court Judge, ordered the return of more than $147 million in funds to investors who had given capital to the Intercontinental Regional Center Trust of Chicago. And presently there is a regional center in Texas and a regional center in South Dakota that are under investigation by federal authorities.

The foreign investors who invested capital into these regional centers did not receive the proper advice and did not do the proper due diligence before they invested in these regional centers.

It depends on what the EB-5 regional center the investor wants: if he or she wants a large return of their investment, they may choose a risky or regional center that offers a high return.

If they just want their $500,000 return at the end of a six-year time they may choose a regional center with a high success rate who gives a very low return.

 

*** Andrew P. Johnson, a New York Immigration Lawyer, practices immigration law and has litigated immigration cases throughout the country. His office handles all immigration issues and problems. The Law Offices of Andrew P. Johnson has submitted proposed regulations for Congress in order to help streamline the US CIS. In addition, Andrew P. Johnson, has been invited to speak in front of United States ambassadors and United Nations ambassadors regarding all aspects of immigration law. The law office can reach for comments regarding Immigration Reform at 212.693.3355 or apjlaw@gmail.com.

For all countries, there is an allocated 7% of the total EB 5 visas available per year. For China, that equates to about 9940 per year. The Department of State has estimated that the Chinese nationals will reach that number in 2014. This means that if the EB 5 is filed, and 9940 visas were already been submitted this year, the applicant needs to wait for an additional 6 to 12 months to process their EB 5 case. Moreover, if more Chinese nationals keep applying, the backlog will increase in time.

 

In addition, the Canadian investor program has been recently terminated. Canada offered a guaranteed permanent residence status in exchange for a guaranteed $800,000 investment. The United Kingdom, Australia and New Zealand require as much as 5 to 10 million dollars, and do not offer up-front permanent residency.

 

A percentage of Chinese nationals who are planning to invest in the Canadian investor program are now filing the EB – 5 applications in the United States since the United Kingdom, Australia and New Zealand require between 5 to10 million dollar investments. This will obviously increase the backlog and longer waiting time for the US program.

 

The good news is that there are numerous congressmen who are trying to increase the monetary amount for the EB 5 requirement, however, the US Congress does not appear on planning to pass any immigration reform anytime soon.

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