U.S. Justice Department and SEC Take Action to Strengthen Protections for EB-5 Investors

The U.S. Securities and Exchange Commission in conjunction with the Justice Department has taken legal action to further protect investors and uphold the integrity of the EB-5 program by stopping a California regional center from allegedly defrauding EB-5 investors and pursuing criminal charges against the persons involved.The integrity of the EB-5 program along with the continued protection of its investors is paramount in making the program successful. Peter D. Joseph, Executive Director of IIUSA, said earlier this month, “Proper oversight, transparency, compliance with – and enforcement of – all applicable securities, anti-fraud and immigration laws and regulations are essential to maintain the confidence of all industry stakeholders and ensure that the EB-5 program continues to bring capital and job creation to American communities.” IIUSA, the Association to Invest in the USA, is a trade association representing hundreds of EB-5 programs and whose members are responsible for 95% of all capital raised through the EB-5 program. Joseph went on to say, “Our position is clear – efficient and effective enforcement of U.S. securities laws is as essential for the EB-5 program as it is for any investment vehicle.”Among the many initiatives being put in place to further protect foreign investors in the EB-5 program are “Investor Alerts” which will be issued by the SEC and USCIS. These alerts will provide investors with information on completing all of the necessary due diligence evaluations of EB-5 securities offerings to ensure they are reputable investments. Another investor protection initiative will be the Financial Industry Regulatory Authorities distribution of guidance for broker-dealers marketing EB-5 related securities.President Obama and his administration have included several important reforms in their comprehensive immigration reform legislation that would further strengthen law enforcement and national security protections. We at Colombo & Hurd, fully support all of the initiatives being put in place to further protect investors. Our attorneys have an excellent record representing investors to successfully obtain EB-5 investor visas. With years of experience in the EB-5 program we only guide our clients toward sound investments that meet and exceed all requirements put in place by the SEC, USCIS and other regulatory organizations. You can find more information about U.S. investor visas here or to speak with one of our EB-5 Attorneys call our office to set up a consultation at (800) 549-5523.