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...