A foreigner and every member of his or her family are granted green cards when he or she can provide at least $500k for investment – this is made possible through the EB-5 visa program. Some of the biggest real estate projects ever seeing in America were funded with money borrowed from foreign investors coming to the country under the EB-5 visa.
EB-5 Immigrant Investor Program has launched about three decades ago, 1990, and was designed for eligible foreign investors who can invest $1M in a new commercial enterprise that employs at least ten people. Such investors, alongside their spouses and unmarried children below 21 years, are granted U.S. green cards and later get citizenship.
The U.S. Citizenship and Immigration Services administered program was unleashed, as part of a comprehensive changes to legal immigration, to help American businesses access fund easier and cheaper than what is obtainable with banks, create employment in the country and the foreigners get citizenship legally as well as get their finds back with interest, representing a win-win-win situation for businesses, employees and foreigners.
Since the inception of the EB-5 visa program, there have been criticisms of inherent flaws warranting almost yearly call for the cancellation of the program. Stakeholders express constant concern about the program’s susceptibility to fraud and abuse.
In a report written in 2015 by the Government Accountability Office (GAO) on the EB-5 visa program, it was revealed that the fraud issues plaguing the program are continually evolving making it difficult to control. GAO revealed that U.S. Citizens and Immigration Services officials continually uncover new fraud schemes.
In 2013, emergency action had to be taken by the Securities and Exchange Commission (SEC) in order to rid the program of a good measure of fraud.
Wall Street players exploit unsophisticated foreigners for profit, and these foreigners are often bullied and embarrassed by courts used by U.S. Immigration Fund according to Doug Litowitz – Chicago attorney.
EB-5 visa program is undoubtedly one designed with best intentions, but there is a need for much effort to restructure the program to nip fraud and abuse in the bud.
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