Category Archives: EB-5

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Not Every Broker-Dealer is an EB-5 Broker-Dealer

Nearly all U.S. broker-dealers are members of the Financial Industry Regulatory Authority (FINRA).  FINRA regulates, and provides oversight and guidance for its member firms.  When a broker-dealer becomes a FINRA member, they enter into a membership agreement which, among other things, specifies which financial products and services the broker-dealer is permitted to offer to its … Continue Reading

SEC Charges Attorneys Across the Country for Acting as Unlicensed Securities Brokers

Last week, the U.S. Securities and Exchange Commission (SEC) announced a series of enforcement actions against lawyers across the country, charging them with offering EB-5 investments and receiving compensation while not registered to act as brokers. According to the SEC, the attorneys and firms involved in these matters assisted in the facilitation of investment sales … Continue Reading

SEC Files a Complaint and TRO against Seattle Developer Alleging Misuse of EB-5 Funds

Yesterday, the SEC filed a civil action and a motion for a temporary restraining order (“TRO”) against a well-known Seattle EB-5 developer.  The SEC alleges, inter alia, that a developer used funds from one EB-5 project for other projects under his control without informing investors. In addition, the SEC claims that the developer used investors’ … Continue Reading

Who Can Source Investors For EB-5 Projects: The World of Finders, Consultants, Attorneys, and Broker Dealers

Use of EB-5 as part of the capital stack for an EB-5 project is a highly complicated prospect. Identifying the right Regional Center or forming a Regional Center and structuring the project so that it is compliant with the myriad of USCIS/DHS rules is a daunting endeavor. The other very real concern for these projects is … Continue Reading

SEC Charges two Businesses for Acting as Unlicensed Broker-Dealers in EB-5 sales

Yesterday, the U.S. Securities and Exchange Commission (SEC) ordered a US-based foreign finder operation to cease and desist from operation as an unlicensed broker-dealer.  The charges are some of the first against brokers handling investments in the EB-5 Immigrant Investor Program and follow earlier SEC actions against fraudulent EB-5 offerings. According to the SEC’s order, … Continue Reading

U.S. Securities Regulators Take Notice of EB-5

After a nationwide conference call of industry participants sponsored by agencies of the U.S. government and several years of cautionary discussions, through its recent actions, the agency that regulates securities sales in the United States, the Securities and Exchange Commission (SEC), and its self-regulatory arm, the Financial Industry Regulatory Authority (FINRA), have made compliance with … Continue Reading
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