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January 9, 2011
As China begins to crack down on EB-5 marketing, the Brooklyn arena roadshow continues; will it violate emerging standards?
Atlantic Yards Report
The recent Reuters investigation of the EB-5 program turned up several examples of immigration brokers in the Far East misleading those seeking green cards via investment immigration--though, as I've argued, the article gave a pass to the New York City Regional Center's framing and presentation of the Brooklyn Arena and Infrastructure Project.
Now several authorities in China are cracking down on abuses, as detailed in several examples within the last month from the EB-5 News Blog run by Brian Su, president of the EB-5 China Market Council and an EB-5 consultant in Illinois.
Report from China: Beijing Police Crack Down on Unlicensed EB-5 Immigration Intermediary Operations:
Beijing has 77 legitimate and licensed immigration agencies, however due to US EB-5 program and other foreign immigration business boom in last two years, many unlicensed immigration intermediary firms are operating without required licenses.
Report from China: City of Chongqing Cleans up Local Exit-Entry Market:
Municipal Public Security Bureau Assistant Commissioner Yang Jian pointed out that this cleaning up motion's goal is to set the standards for foreign immigration intermediary business.
Report from China: Shanghai Exit-Entry Services Association Issues Warning to Members:
On December 27, 2010, Shanghai Exit-Entry Services Association issued a warning notice to all association members that the association will prohibit members to participate in any un-authorized exit-entry industry competition or award events organized by un-authorized entities and organizations. The association has received numerous complaints that a newspaper publisher was hosting a so called "The Most Trustworthy Exit-Entry Service Agency 2011 Award" event.
Report from China: Guangzhou Exit-Entry Administration Sets New Rules for EB-5 Brokers:
In a recent conference with Guangzhou area immigration service providers, Guangzhou Exit-Entry Administration also set new requests to the Guangzhou immigration industry. 1) Set new mechanism for monitoring promotional activities and restrict excessive exaggerations; 2) Publicize risks on overseas investment projects; 3) Each exit-entry service agency must file annual compliance review documentation by the end of December every year; and 4) When handling U.S. EB-5 immigrant investors program, exit-entry service agencies must inform consumers and fully disclose risk factors associated with the program.
Report from China: Role Change of the Beijing Municipal Public Security Bureau Exit-Entry Administration:
As many EB-5 regional centers enter China market, the Beijing government is definitely nervous and closely watching.
And what about the NYCRC?
The basketball push continues. Report from China: New York City Regional Center Continues NETS EB-5 Project Promotion:
A promotional event for New York City Regional Center is to be hosted by a local migration agency in Guangzhou on January 15, 2011. The seminar will be held at 2:00 pm at Westin Hotel, 6 Lin He Zhong Road, Guangzhou. Mr. Gregg Hayden will be attending and entertaining questions. Two NYCRC seminars will take place in Beijing on January 8-9, 2011.
Will the local migration agency "restrict excessive exaggerations" and "fully disclose risk factors"?
Hayden has said the "EB-5 funding, the $249 million we are seeking to raise in the China market, is only 17%, the safest, most secure portion of the capital structure, 17%... portion of the capital structure is the EB-5 portion."
How exactly is that explained and disclosed?
Posted by steve at January 9, 2011 4:27 PM