Concerns Over EB-5 Fraud May Lead to Revisions or Shut Down
June 12, 2017
Hopeful immigrants have access to different visa programs when they are searching for the best fit for their needs. However, there is one that may either be revised or cancelled over allegations of EB-5 fraud or misuse. Many investors currently living in New York have gained their green card through this particular visa program.
The EB-5 Visa program allows a foreign national to invest in a development project here in the United States for a minimum outlay of $500,000. Once there is proof that a project provided a minimum number of employment opportunities for Americans, the investor is granted the opportunity to receive his or her visa. Ten years ago, the percentage of Chinese investors was approximately 12 percent. That number climbed to an estimated 82 percent as of last year.
Now, due to ongoing concerns from some members of congress, the program could either be cancelled in September or could have the minimum investment raised to $1.35 million per project. Many cite concerns over the fact that wealthy investors are given preferential treatment over others who lack the financial means to qualify for this particular visa. Senators Dianne Feinstein and Charles Grassley have introduced legislation that would end the program, as they see the visa as a way to sell green cards to wealthier immigrants.
One Chinese family sold their home as a way to raise the capital they needed for their visa. They hope to be granted their green cards within the next eight to 10 years since there are restrictions on the numbers of visas issued to each nationality. This program has been the subject of investigations based on allegations of EB-5 fraud over misuse of funds or unfinished projects. New York residents who believe that they have been victims of this visa fraud are assured of the right to consult with an attorney experienced in this area of law.
Source: The Washington Post, ““Everyone in China has the American Dream” and a popular path to it may disappear“, Tracy Jan, July 7, 2017