Investor Beware: Choose Your Advisors Wisely

When selecting a regional center project for investment, do not follow the advice of unlicensed EB-5 “due diligence consultants.”  If you want to know why, try asking one of these firms to show you the research that they claim to have done on the center they are presenting to you. Most likely they won’t have any research, and you will realize they are sending you not to the best centers but rather to the centers that are paying them the highest fees. Following the advice of such firms is especially dangerous because they are showing you only the regional centers that are willing to commit a securities law violation to obtain investor referrals. This means that someday the SEC could come knocking on the regional center’s door and shut down the entire operation while it conducts an investigation (see for a discussion of the consequences of securities law violations). In such a scenario, the project you are investing in is not likely to be concluded in time, if at all, and the necessary jobs will not be created for all investors. I’ll note also, that the most reputable regional centers do not do business with such firms.

For further reading on this subject, see

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