Can You Recover Monies Invested in an EB-5 Program?
The Law Offices of Howard M. Rosenfield has been successful in recovering investor assets invested in the EB-5 Program where the EB-5 broker-dealer has failed to complete due diligence prior to providing a private placement memorandum or marketing materials to potential investors.
EB-5 Placement Agents are required to complete due diligence for Eb-5 Programs. The due diligence should include sufficient information to allow an EB-5 Investor to make an informed decision on the merits of the program. These might include background checks on management, site visits, interviews with developers, interviews with project promoters, interviews with Regional Centers, review of construction timelines, review of exit strategies, review of financial models, exit strategies, and review of marketing materials.
If the Placement Agent for your EB-5 Program has failed to disclose important information, you may be able to seek an investment recovery.
The EB-5 program permits foreign investors to obtain a U.S. visa in exchange for investing in projects that create U.S. jobs. The Immigration and Nationality Act of 1990 provides a method for foreign nationals to obtain U.S. residency by investing in domestic projects that will create or preserve a minimum number of jobs for U.S. workers. Known as the EB-5 Program and administered by the U.S. Citizenship and Immigration Services, this program provides that foreign nationals may qualify to obtain U.S. residency if individuals invest $1,000,000 (or at least $500,000 in a "Targeted Employment Area" – i.e., a high unemployment or rural area) in a project that creates or preserves at least 10 jobs for U.S. workers, excluding the investor and his or her immediate family.
SEC Regulation S or Regulation D may provide exemptions from registration of EB-5 programs. However, EB-5 Programs must have sufficient disclosures to allow investors to make informed choices after all material information concerning the proposed project is disclosed.
EB-5 programs are typically sold as fractional interests in a pool of investor assets under one of the exemptions from registration such as Regulation D or Regulation S promulgated under the Securities Act of 1933.
The EB-5 Program securities are often transactions that involve pooled investments sold through private placements. The marketing of these issues raise many of the same concerns as those associated with sales of any private-placements. In this regard, the SEC recently filed a civil action in federal court alleging securities fraud in connection with EB-5 Program securities transactions. Additionally, FINRA and the SEC included EB-5 private placements on their Enforcement Priorities Lists in recent years.
If you believe you have a claim against a developer and/or a broker-dealer in connection with an EB-5 Program investment, call securities fraud lawyer Howard M. Rosenfield at (800) 637-3243 or send us an e-mail at email@example.com.
Time limits may apply, so contact our offices before you lose your rights.