What is EB-5 Investment Fraud?

EB-5 investment fraud is a specific type of scheme that takes advantage of the Immigrant Investor Program, targeting foreign investors eager for U.S. citizenship. Fraudulent businesses often market themselves as legitimate EB-5 qualifying investment opportunities, luring foreign investors with promises of green cards and permanent residency. Unfortunately, victims of these scams not only risk losing their substantial financial investments but also face the denial of their immigration petitions. The fraudulent entities pose as regional centers or falsely advertise EB-5 qualifying investments without proper designation, collecting investors’ money and misusing it for personal gain. Despite these challenges, the EB-5 program remains a popular avenue for foreign investors, particularly from China, to obtain U.S. green cards and permanent residency. The program’s allure lies in its potential for economic benefit and a clear path to U.S. citizenship for those who can meet the investment requirements. However, the inherent risks of EB-5 investments cannot be ignored. These investments are often exempt from certain securities laws and regulations, making them susceptible to exploitation. The SEC has issued warnings about scams that exploit the program, highlighting the need for stringent oversight and due diligence by potential investors to avoid falling victim to fraudulent schemes.

What risks are associated with EB-5 investments, and how can investors protect themselves from fraud?

EB-5 investments carry inherent risks, as they are often exempt from certain securities laws and regulations, making them vulnerable to exploitation. Fraudulent businesses may misrepresent their success or the legitimacy of their projects, leading to financial losses and denied immigration petitions for investors. The SEC and USCIS have issued warnings about these scams, emphasizing the need for thorough due diligence.

How does EB-5 investment fraud occur, and what are the consequences for investors?

EB-5 investment fraud occurs when businesses falsely market themselves as qualifying for the EB-5 program, attracting foreign investors with the promise of U.S. residency. These fraudulent entities may misuse investor funds for personal gain, failing to create the required jobs or contribute to economic growth, which disqualifies the investment from the EB-5 program. Victims of such scams not only lose their money but also risk having their immigration petitions denied.

What measures has the U.S. government implemented to prevent EB-5 investment fraud?

To prevent EB-5 investment fraud, the U.S. government, through agencies like USCIS and the SEC, has implemented several measures. These include stringent background checks on regional centers and their principals, regular audits and compliance reviews of EB-5 projects, and enhanced reporting requirements. USCIS also collaborates with other federal agencies to identify and investigate fraudulent activities. Additionally, the SEC issues public warnings and educational materials to help investors recognize and avoid scams.

What are the common pitfalls that EB-5 investors should be aware of?

Common pitfalls for EB-5 investors include selecting fraudulent or poorly managed regional centers, failing to understand the complex legal and financial requirements, and not conducting thorough due diligence. Investors may also face challenges if their chosen project does not meet the job creation requirements or if the regional center misuses funds. Additionally, changes in U.S. immigration policy or economic conditions can impact the success of EB-5 investments.

What is EB-5 Investment Fraud?

EB-5 investment fraud is a specific type of scheme that takes advantage of the Immigrant Investor Program, targeting foreign investors eager for U.S. citizenship. Fraudulent businesses often market themselves as legitimate EB-5 qualifying investment opportunities, luring foreign investors with promises of green cards and permanent residency. Unfortunately, victims of these scams not only risk losing their substantial financial investments but also face the denial of their immigration petitions. The fraudulent entities pose as regional centers or falsely advertise EB-5 qualifying investments without proper designation, collecting investors’ money and misusing it for personal gain. Despite these challenges, the EB-5 program remains a popular avenue for foreign investors, particularly from China, to obtain U.S. green cards and permanent residency. The program’s allure lies in its potential for economic benefit and a clear path to U.S. citizenship for those who can meet the investment requirements. However, the inherent risks of EB-5 investments cannot be ignored. These investments are often exempt from certain securities laws and regulations, making them susceptible to exploitation. The SEC has issued warnings about scams that exploit the program, highlighting the need for stringent oversight and due diligence by potential investors to avoid falling victim to fraudulent schemes.

What risks are associated with EB-5 investments, and how can investors protect themselves from fraud?

EB-5 investments carry inherent risks, as they are often exempt from certain securities laws and regulations, making them vulnerable to exploitation. Fraudulent businesses may misrepresent their success or the legitimacy of their projects, leading to financial losses and denied immigration petitions for investors. The SEC and USCIS have issued warnings about these scams, emphasizing the need for thorough due diligence.

How does EB-5 investment fraud occur, and what are the consequences for investors?

EB-5 investment fraud occurs when businesses falsely market themselves as qualifying for the EB-5 program, attracting foreign investors with the promise of U.S. residency. These fraudulent entities may misuse investor funds for personal gain, failing to create the required jobs or contribute to economic growth, which disqualifies the investment from the EB-5 program. Victims of such scams not only lose their money but also risk having their immigration petitions denied.

What measures has the U.S. government implemented to prevent EB-5 investment fraud?

To prevent EB-5 investment fraud, the U.S. government, through agencies like USCIS and the SEC, has implemented several measures. These include stringent background checks on regional centers and their principals, regular audits and compliance reviews of EB-5 projects, and enhanced reporting requirements. USCIS also collaborates with other federal agencies to identify and investigate fraudulent activities. Additionally, the SEC issues public warnings and educational materials to help investors recognize and avoid scams.

What are the common pitfalls that EB-5 investors should be aware of?

Common pitfalls for EB-5 investors include selecting fraudulent or poorly managed regional centers, failing to understand the complex legal and financial requirements, and not conducting thorough due diligence. Investors may also face challenges if their chosen project does not meet the job creation requirements or if the regional center misuses funds. Additionally, changes in U.S. immigration policy or economic conditions can impact the success of EB-5 investments.

Important Update: We We are no longer accepting new cases related to alleged EB-5 Regional Center investment fraud issue. However, this page remains available for informational purposes. If you’re seeking legal assistance for class action matters, visit our Class Action cases page for active investigations.

Case Update

EB-5 investment fraud is a specific type of scheme that takes advantage of the Immigrant Investor Program, targeting foreign investors eager for U.S. citizenship. These businesses market EB-5 limited partnership investments to foreign investors with promises of green cards and permanent residency. While McCune Law Group is no longer accepting new cases related to this issue, we remain committed to raising awareness about investment related concerns. For over 30 years, we’ve successfully represented clients in cases against major corporations like Wells Fargo, Chase, and other financial institutions.

We are no longer taking cases related to potential EB-5 Regional Center investment fraud . Do you have another class action concern?

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$16.5 Million
Class Action
Personal Injury

$11 Million
Class Action
Personal Injury

$5.5 Million
Class Action
Personal Injury

$200 Million
Class Action
Product Liability

EB-5 Regional Center Investment Fraud: What You Need to Know

An EB-5 regional center is an economic entity, either public or private, in the United States that promotes economic growth through job creation and capital investment by foreign investors. Designated by the United States Citizenship and Immigration Service (USCIS), these regional centers participate in the Immigrant Investor Program. Established by Congress in 1990, the EB-5 program aims to stimulate the U.S. economy by attracting foreign capital. In 1992, Congress created the Regional Center Program to facilitate this process by setting aside EB-5 visas for investors in commercial enterprises linked to USCIS-approved regional centers.

EB-5 investment fraud is a specific type of scheme that takes advantage of the Immigrant Investor Program, targeting foreign investors eager for U.S. citizenship. These businesses market EB-5 limited partnership investments to foreign investors with promises of green cards and permanent residency. However, some EB-5 Regional Centers spend the majority of their time marketing a never-ending series of limited partnerships to foreign investors, making millions in fees in the process. Once the partnerships are sold, these Regional Centers do little if anything to manage the investments. As a result, a substantial percentage of investors lose the entirety of their $500,000 investment in the program and some may not be able to secure permanent US residency.

What Can Affected Individuals Do?

Although McCune Law Group is not accepting new cases at this time, you still have legal options. If you’ve experienced issues with your investment matters, you can:

Visit the USCIS Website: Visit the United States Citizenship and Immigration Services website for more information regarding the EB-5 program.
Explore Other Legal Avenues: If you have experienced financial hardship due to this issue, you may still qualify for legal action. Explore our financial services case page for more details.

Related Cases and Legal Areas

Though we are not currently taking cases related to this matter, we may be able to assist you with a similar case. We recommend exploring the following practice areas:

Financial Services: Concerns related to borrowing, lending, or otherwise transacting are best addressed by a financial services attorney.
Commercial Litigation: Business owners looking for legal strategies pertaining to anti-trust violations fraud, breach of fiduciary duty and other matters may be best served by an attorney specializing in commercial law.
Class Action: When multiple parties have been harmed by the same issue, they may form a class to pursue justice as a collective.

Need Legal Assistance?

If you are dealing with another financial issue or class action related matter, our experienced attorneys are here to help. Get in touch with our team to explore your legal options.

For general inquiries, you can reach us at (909) 345-8110 or via our online form.

Final Note

This page is no longer accepting new clients related to potential EB-5 Regional Center investment fraud but remains active as an informational resource to serve affected account owners.

Attorney Advertising

McCune Law Group, APC is responsible for this advertisement. The information provided on this website is for general information purposes only. The information you obtain is not, nor is it intended to be, legal advice. Use of this website or submission of the online form does not create an attorney-client relationship.

Counsel Richard McCune is licensed to practice only in the state of California.  The law firm of McCune Law Group has attorneys licensed to practice law in AZ, CA, IL, MO, NJ, NY, and PA.  This information section is not intended to be a solicitation for services in states where it is forbidden for non-barred attorneys from advertising for services, and McCune Law Group does not have attorneys barred in that state. McCune Law Group is a national firm that brings lawsuits in a majority of the states. In states where one of its attorneys are not barred, it does so by filing the complaint along with local counsel barred in that state. 

The results discussed do not guarantee, warrant, or predict the results in future cases.

We are no longer taking cases related to potential EB-5 Regional Center investment fraud . Do you have another class action concern?

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