May 16, 2016
This is getting monotonous. On May 4 we reported a middle-sized case of H-1B fraud involving both the loss of jobs to U.S. residents and the exploitation of Indian workers by Indian criminal employers in Virginia.
On May 12 we wrote about a somewhat similar case in California, and today we have the third case in the set, this time in Memphis, Tenn. Three cases in 12 days, all in the federal courts.
This time the corrupt employer, Ramesh Basa, has pled out and has agreed that the feds can seize six pieces of his real estate valued at half a million dollars as part of the deal. The agreement also included a joint recommendation by attorneys on both sides of the case for a one-year jail term for Basa. Read more...
May 13, 2016
Multiple EB-5 developments — all discouraging for the program's backers — are coming hard and fast as the September 30 termination of the main part of the program looms. Read more...
May 12, 2016
Last week one of my informants sent me an article headlined "US: 4 Indian-Americans charged with H-1B fraud".
Since I had written a blog post a few days earlier involving five Indian-Americans in a case of H-1B fraud, my initial assumption was that the headline writer simply had the wrong number of culprits.
It turned out, however, that the five earlier ones were in Virginia, while the four current ones were in California. Two completely separate cases, but with many of the same characteristics: Read more...
May 11, 2016
Last month we published 20 years of data on the E-1 (Treaty Trader) and E-2 (Treaty Investor) nonimmigrant programs. The tables, covering the years 1994 to 2013, show that the number of visas issued in the E-1 category dropped from over 11,000 a year to about 7,000, while issuances of E-2 visas moved in the opposite direction, from about 19,000 to about 35,000 a year. Data for 2104 show E-1 visas at 7,330 and E-2 visas at 36,825. Read more...
May 11, 2016
One of the hidden specialties of the U.S. immigration system is the way it facilitates the immigration of aliens deep into, or beyond, their working lives.
The country-of-origin limits on immigration, coupled with high demand from some nations such as the Philippines, means that many migrants have been waiting for 20 years or more – and are thus about 20 years older than the average migrant when they finally arrive in the U.S. You can imagine what this does to the welfare costs.
I was reminded of this by a Homeland Security press release proclaiming: Read more...
May 9, 2016
The Department of Homeland Security has shown, once again, that it is very good at locking the barn door, not only after the horse has been stolen, but long after the stolen horse has died of old age. In short, it occasionally takes appropriate action, but years — even decades — too late.
The latest example comes from America's far, far West, the Island of Tinian, in the Commonwealth of the Northern Mariana Islands, just north of Guam in the Pacific. That is the location of the Tinian Dynasty Hotel & Casino; the casino has been closed for several months, and the adjacent hotel is operating, but just barely. Read more...
May 4, 2016
The feds charge that $20 million was obtained fraudulently in an immigration scheme that involved hundreds of Asians, and that part of the scam involved a geographic area that our government has ruled to be economically depressed.
Sounds like another EB-5 scandal, right?
Wrong! Most of the money, according to an indictment in the Eastern District of Virginia, came out of the H-1B program, with lesser sums being obtained from Small Business Administration benefits.
The whole thing started out on what I — if not the feds — regard as a romantic moment. Read more...
May 2, 2016
One must search with a magnifying glass, but sometimes there is good news on the immigration front. Here is an example.
As background: Some schools that have been charged with being visa mills — letting illegal aliens into the country in return for tuition payments — have been accredited by an organization essentially licensed by the U.S. Department of Education to be an accreditor. This entity is the Accrediting Council for Independent Colleges and Schools (ACICS). Read more...
May 1, 2016
To: America's Governors and other Elected Officials
From: David North, Center for Immigration Studies
Re: Warning: Overseas Travel to Promote EB-5 Investments Can Be Risky
The invitations look attractive — a trip to China or Vietnam, a place you have never been, all at the cost of either the EB-5 promoters or the state business development budget. All you have to do is appear at an event or two to promote the EB-5 (immigrant investor) program, and you will surely get a nice trip; and maybe you will bring some investment-created jobs to your state.
The big problem is that many EB-5 investments turn out to be disasters for the investors and for everyone connected, directly or indirectly, with them. And it can happen to pols in both parties. Read more...
April 29, 2016
If it had not been for the terrorist shootings in San Bernardino, CA, an immigration/marriage fraud situation would probably have gone unnoticed by the authorities.
But because of the killings by Syed Rizwan Farook and the woman he brought to the United States as his alien bride, Tashfeen Malik, the fraudulent marriage between Farook's friend, Enrique Marquez Jr., and Mariya Chernykh has now — months later — led to yesterday's immigration fraud indictments against the three people in the middle of the chart below: Read more...
April 25, 2016
Building ski lodges is a relatively old, relatively low-tech activity, but the EB-5 promoters in Vermont, now subject to court action, were also proposing to build a state-of-the-art medical facility to manufacture artificial human organs.
The organs were to be developed in the rural reaches of northern Vermont, near the Canadian border, in an area not known for high-tech medical work.
Other aspects of this now-exposed Vermont scandal involved the apparent theft of $50 million, as we reported earlier. Read more...
April 22, 2016
One of the reasons our rulers are rarely worried about foreign worker programs is that such programs never adversely impact them, their relatives, or their college classmates.
If you are in Congress or one of the big foundations or universities, the likelihood is that no one you know personally ever lost a job to an under-paid foreign farm worker or had their wages reduced by a contractor's use of H-2B temporary workers. And if you can't identify with the victims, it is hard for you to see — as you should — that something is very wrong. Read more...
April 20, 2016
If authorities hear about a murder or terrorist attack plot, they move immediately to prevent people from being killed.
But what should the authorities do when they become suspicious of an embezzlement in the works? Move in immediately to prevent the loss of more money, and in the rush risk losing the case against the bad guys – or let it play out till all the facts are in order and no innocent victims, like carpenters on the building site, are hurt.
This is the dilemma that faced the state of Vermont and the Securities and Exchange Commission (SEC) in the huge EB-5 scandal that emerged in that state last week. Here are five considerations: Read more...
April 19, 2016
This particular EB-5 conflict is between folks who want to protect us against rabid bobcats, on one hand, and the green-eyeshade types at USCIS, on the other; it is rural health providers vs. urban regulators, and my initial sympathies are with the former, but it is more complicated than that. Read more...
April 18, 2016
For a period of at least seven years, the Department of Homeland Security either did not know about the theft of $50 million in its Vermont EB-5 program, a sign of remarkable incompetence, or knew about it and did nothing about it, a sign of something worse.
The loss of these moneys in a well-honed Ponzi scheme was announced last week by the Securities and Exchange Commission — once again riding to the rescue — and by chagrined officials of the State of Vermont, as we reported at the time.
As of Sunday, DHS had — perhaps understandably — issued no statements on the disaster to the program, which is like the Titanic's owners saying nothing after its sinking. Read more...
April 18, 2016
The Border Patrol continues to discover tunnels under the U.S.-Mexico border in, shall we say, a low-tech manner.
The most recent Border Patrol press release on the discovery of a tunnel said, in effect, that one of its agents encountered the tunnel when the ground opened up before him, or to quote the release:
As the agent approached the anomaly [a depression] in the soil on foot, it began to give way exposing a hole 18 inches in diameter.
April 15, 2016
There are two iron rules of immigration-related fraud:
- If someone violates the immigration law they are likely to violate other laws, too.
- Fraud is often inflicted on later arrivals by earlier arrivals from the same country.
A recent case in Chicago was exactly in line with these two rules. Richard and Maribel Tinimbang, descendants of Filipino immigrants, charged with swindling $45 million in Medicare funds, were also charged with immigration fraud in connection with their effort to obtain forced household labor from a new arrival from the Philippines. Read more...
April 14, 2016
The EB-5 program received a major body blow today. Projects in Vermont have been regarded as pure as driven snow, but now it turns out that one of the major players misused $50 million, which, among other things, allowed him to purchase a luxury condominium in Manhattan's Trump Place. Read more...
April 14, 2016
It's always aggravating when watching a congressional hearing to find that the very best of the witnesses is arguing for the point of view that is exactly opposite to your own. Read more...
April 13, 2016
Although the Border Patrol has many expensive, often high-tech tools at its disposal — drones, helicopters, tethered balloons, and fixed-wing planes in the air and an impressive array of sensors and alarm systems on the ground — it is obvious that sometimes technology helps the other side.
Here are some examples:
Their Drones. Ominously, the Border Patrol reported earlier this month that smugglers' drones, usually two to four feet wide, are being used to ferry drugs from Mexico to the United States. Read more...
April 12, 2016
While there have been news stories and congressional hearings on EB-5 visas (the immigrant investor program), a roughly comparable program that brings in about four times as many aliens has drawn virtually no attention.
This is the Treaty Trader (E-1) and Treaty Investor (E-2) program. It provided nonimmigrant visas for more than 42,000 aliens in 2013, the last year for which we have statistics. Unlike the EB-5 program, it offers only temporary visas for traders and investors, and unlike the EB-5 program its growth in recent years has been steady, but not dramatic. Read more...
April 5, 2016
In an unusual and commendable move, Immigration and Customs Enforcement (ICE) established a phony visa mill, created a network of recruiters for it, and then arrested 21 of the conspirators yesterday.
ICE established the totally imaginary University of Northern New Jersey (UNNJ), which was described to recruiters of foreign students as having no classes, and then watched as these recruiters (for a fee) enrolled "students" in the scheme. Since the whole enterprise was known as a fraud to everyone concerned — recruiters, brokers, "students", and some employers of the "students" — all were clearly participating in illegal activity. Read more...
April 5, 2016
In his usual oafish way, Donald Trump has brought a usually ignored aspect of immigration economics to the fore: the outward flow of remittances to Mexico and other nations, and how those transfer payments harm the American economy.
Trump has proposed to block all such transfers to Mexico until Mexico agrees to pony up $5 billion to build his wall. He sets the amount at about $25 billion a year to Mexico; about an equal amount goes to other nations.
While it is useful that The Donald has raised the remittances issue, he has used a sledgehammer when a more precise tool would be more effective. Read more...
April 1, 2016
Finally, after years and years of avoiding the issue, South Dakota Attorney General Marty Jackley (R) has filed a handful of criminal charges against the former state official in charge of the EB-5 (immigrant investor) program, Joop Bollen, according to an account in the Rapid City Journal by Seth Tupper. Read more...
March 31, 2016
Nervous Chinese millionaires and multi-millionaires, sensing that the rock-bottom level of investment now set by the U.S. government for a handful of immigrant visas ($500,000) is about to increase, have, along with others, filed enough EB-5 petitions to meet the program's ceiling for five years to come.
It is the Obama administration's dream come true — there is so much demand for these visas that it can now argue for an expansion of the program beyond the decades-long ceiling of 10,000 visas a year. Read more...
March 30, 2016
The Securities and Exchange Commission, once again, has galloped onto the scene to clean up messes created by the ever-messy EB-5 (immigrant investor) program — this time handing down orders on two different cases within a few days of each other in the week of March 21.
It ordered one set of middlemen, in Florida, to disgorge about $3.2 million in ill-gotten EB-5 fees; in a Washington State case, it consented to a settlement in which an EB-5 lawyer agreed to pay the Commission $278,169 in disgorgement, interest, and penalties.
In both cases the parties had acted as unregistered broker-dealers; one might think that professionals handling multi-million dollar EB-5 deals would know better, but that was not the case. The EB-5 program gives sets of green cards to investors (for the alien, the spouse, and all their children under 21) who provide DHS-licensed regional centers with half-million-dollar investments. Read more...
March 29, 2016
Suppose there was a large, U.S. government-operated program that permitted U.S. employers to hire nothing but White Anglo Saxon Protestant (WASP) college-graduate men between the ages of 22 and 30.
Suppose that program, more narrowly, allowed major U.S. employers to discriminate in favor of descendants of men who had graduated from an Ivy League College before World War II. (After WWII the Ivy League dropped its restrictive admissions practices.) Read more...
March 28, 2016
Never let it be said that the EB-5 (immigrant investor) program does not create jobs in the American economy.
It may not do much for factory workers or hotel employees, but it is a bonanza for lawyers, and yet another expensive legal dispute came into view recently. Read more...
March 25, 2016
If you were a creature from outer space, complete with really good computational skills, and you were examining U.S. immigration policy, you would find that our policy resembles a 10-layer cake, coated with a Cuban frosting.
While immigration law sometimes applies equally to aliens from all nations, as in the case of a U.S. citizen seeking a visa for an alien spouse, different rules often apply to different kinds of migrants from different countries, in a maze of complications. This blog post is an effort to illustrate how the total set of migration rules impacts different nations. (In some cases a nation will appear in two or more layers, and some of the layers will be much more populated than others.) Read more...
March 23, 2016
Turkey may, similarly, be induced by European money to play a similar role in the near future.
The quotation above was part of a blog post late last year in which I suggested that maybe in the future Europeans would follow our example and hire Turkey to block the path of migrants to Europe, as we seem to have done with Mexico in connection with the Central Americans, if not the Cubans. That has come to pass. Read more...