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YOUR NEW EB-5 COLORING BOOK

By Joseph P. Whalen (Monday, September 19, 2016)

ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The EB-5 Promoter

The promoter is in it for the money. Some promoters properly follow all the complex rules and fully disclose everything. Some do not. Be careful and do your own due diligence. It would be impractical to perform a full blown due diligence on everything so at the beginning, at least check the major claims, do some fact-checking. Once serious about a project, do more.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The “Big-Bad” Government

Beware the promoter who paints a picture of the U.S. government as the “opponent” in EB-5 deals. They are probably afraid of “being found out” at something. The same promoters might tack the opposite approach and tell

you that there is no risk because the government guarantees repayment.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The “Innocent” EB-5 Investor

Some potential EB-5 “investors” have never invested before in their life. This investor is looking for someone to hold their hand throughout the entire EB-5 process. Naïve investors should seek professional guidance but must be careful to choose wisely. Is the professional licensed or registered? Is that a requirement? Do not believe that one person is qualified to advise you about everything. If someone says they are, look for help elsewhere.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The Uninformed EB-5 Investor

This potential investor might or might not be new to investing. Sometimes it is the veteran investor who makes the bigger mistake of failing to learn all about the EB-5 requirements and looks only at potential profits. A big mistake.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The Ideal Conscientious Fairy Tale EB-5 Regional Center

In a perfect world, which this is not, the investor has a marvelous EB-5 support system readily available in a competent Regional Center. This gentle giant will hold your hand throughout the process. They will tell you what they can and will do; and tell you what they cannot do. They will help you understand your own responsibilities in the process. They will let you know the types of outside service providers that you will likely need but will not mandate that you use

someone in particular.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The Far Too Often Encountered Nightmare EB-5 Regional Center

Rolling around out there amongst the things that go bump on the night, are dangerous incompetents and fraudsters. Some folks will present real projects but will mismanage them because they are trying to do things that they are not qualified to do. At the other end of the spectrum, some folks are planning fraud from the very beginning, and to sucker as many people, out of as much money, as quickly as possible. Be careful and check out the RC sufficiently.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

Honest & Smart EB-5 Service Providers Who Truly Help Navigate EB-5

EB-5 does have far more “good guys” than “bad guys”. A major problem is that the “bad guys” make bigger headlines. American tabloid press and people who hate immigrants use the minority of “bad guys” to denounce the whole program unfairly. In the news business, if it bleeds, it leads! Warm and fuzzy, cute and cuddly stories are relegated to “magazines” and “magazine shows” on Sunday

morning.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The Diligent EB-5 Investor (A “Rare Breed”)

My favorite character in this cast is the diligent EB-5 investor who first learns about EB-5 by studying it before ever looking at an EB-5 offering. This person will understand the program requirements so that they can evaluate that aspect of any offering. This person will have found out all about EB-5 “Best Practices” and pass over Regional Centers and practitioners who do not follow any of them. Circumstances and project specifics will influence which EB-5 “Best Practices” are needed.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The Wrong Kind of Help; That Does More Harm Than Good

If you are not careful, there are predators who will eat you alive. They often have undisclosed conflicts of interest. Most conflicts are merely unethical but

might be criminal. The wrong help can hurt.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

The Wrong Kind of Help; That Does More Harm Than Good

These unprofessional professionals do many bad things. They might have had their licenses suspended or revoked. Some are practicing a profession for which they have not qualified. Some practice law without a license because they never had one, it was temporarily taken away, or they were disbarred. Investment advisors and broker-dealers must register and you can check their status online (free of charge on government databases). Incompetent fools will cause you pain and suffering; and could get you in legal trouble. These folks are rip offs.

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ONE INTERPRETATION OF THE EB-5 CAST OF CHARACTERS

USCIS’ Immigrant Investor Program Office (IPO)

IPO will go through all of the project’s paperwork thoroughly. I mean, they will “shred” those documents. Sometimes (OK-most of the time), the agency takes so long that the petitioners file mandamus lawsuits. I personally think that is a wasted effort because it will never change the adjudication decision and processing times are so long that it makes little if any difference. Sometimes it is USCIS that discovers a fraud and when they catch one early enough and alert the SEC, most of the funds can be frozen and then returned. In other situations, it might not be an issue of fraud but instead, the project does not

meet EB-5 requirements.