EB-5 Investor Alert – Investment Scams Exploit Immigrant Investor Program

The U.S. Securities and Exchange Commission's ("SEC") Office of Investor Education and Advocacy and U.S. Citizenship and Immigration Services ("USCIS") have jointly issued an Investor Alert to warn potential investors about fraudulent investment scams that exploit the Immigrant Investor Program, also known as "EB-5." The SEC and USCIS have issued this alert in response to their awareness of investment scams targeting foreign nationals who seek to become permanent lawful U.S. residents through the EB-5 program.

In close coordination with USCIS, which administers the EB-5 program, the SEC has taken emergency enforcement action to stop allegedly fraudulent securities offerings made through EB-5. The EB-5 program provides certain foreign investors who can demonstrate that their investments are creating jobs in this country, with a potential avenue to lawful permanent residency in the United States. Business owners apply to USCIS to be designated as "regional centers" for