How we have helped USCIS Officers:
- Advising on Regional Center Compliance Review methodology and analysis.
- Commenting on proposed changes to EB-5 regulations.
- Proposing policies to effectively detect and deter fraud by reference to SEC Reg D, Rule 506(d) & (e) Bad Actor Disqualification and Disclosure.
Case Studies – Helping USCIS Officers
Case Study 1: Preventing and Detecting Fraud at the Regional Center and NCE/JCE Level
USCIS Officer M.T was part of a USCIS team conducting an EB-5 Regional Center Compliance Review. In a post review conversation, we suggested ways their review could be more effective in preventing and detecting fraud at the regional center and NCE/JCE level. We recommended that EB-5 Regional Center Compliance Review process include a request that EB-5 Regional Center operators provide a completed SEC Reg D, Rule 506(d) & (e) Bad Actor Disqualification and Disclosure for covered persons. We explained that nearly all EB-5 Offerings are made under the registration exemptions contained in SEC Reg D. Since 2013, an offering is disqualified from relying on Rule 506(b) and 506(c) of Regulation D if the issuer or any other person covered by Rule 506(d) has a relevant criminal conviction, regulatory or court order or other disqualifying event. SEC rules have required Reg D Issuers to complete a Bad Actor disclosure, so this should be readily available from the regional center and each affiliated NCE and JCE.