Be Careful When Investing in US Companies for EB-5 Visas
Many people describe EB-5 visas as “golden tickets,” allowing investors to pay a sum of money in exchange for living in the United States. The truth is that it’s not quite as simple as that. Anyone who tells you that it is that simple probably should not be trusted. Unfortunately, there are all kinds of investment scams out there that specifically target immigrants. It is important to not only do due diligence before engaging in these business endeavors, but also to work alongside immigration attorneys who you can actually trust.
Businessman and Immigration Attorney Charged by the SEC
On November 21st of 2023, The Securities and Exchange Commission announced that two individuals had been charged with fraud and unregistered sales of securities. These individuals had been running a scam targeting immigrants, and one of the defendants is apparently an immigration lawyer. The scam revolved around the EB-5 visa – a type of visa that allowed investors to pursue permanent residency status after investing in a new US company that creates a certain number of new jobs in the country.
Over a four-year period, these individuals apparently created a number of companies that seemed to fit this requirement. Investors were told that if they injected funds into these companies, they would qualify for the EB-5 visa. In reality, the person who established these businesses was using the foreign investment funds to pay off his previous debts. In total, the defendants apparently raised almost $67 million in funds from these foreign investors.
Not only did some of these funds get diverted, but the entire endeavor was a violation of SEC regulations. As a result, the SEC charged everyone involved with the sale of unregistered securities. They also pointed out that none of the foreign investors ever received a return on their investments, despite pouring in tens of millions of dollars within a four-year period.
Although the defendants certainly experienced justice for their activities, the investors may also have been deported as a result of their involvement with this fraudulent company. The DHS is not hesitating to remove individuals who longer have a basis to be in the United States, and they demonstrated this with a press release on November 21st. In the press release, they announced that they had facilitated “dozens of removal flights,” sending both adults and entire families back to their respective countries. These countries include not only South and Central American nations, but also Eastern nations such as India.
Where Can I Find an Immigration Attorney in Palm Beach County?
If you’ve been searching for a qualified, experienced Palm Beach County immigration attorney, look no further than the Devore Law Group. Over the years, we have helped numerous immigrants seeking a new home in the United States – including EB-5 visa applicants. Although it may seem alarming to hear tales of investment scams, there are still plenty of ways to settle in the United States while contributing meaningfully to this nation’s economy. Book your consultation today to discuss your options.
Sources:
sec.gov/news/press-release/2023-238
dhs.gov/news/2023/11/21/dhs-continues-remove-individuals-and-families-without-basis-remain-united-states
