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August 1, 2011
Down the rabbit hole: federal agency says immigrant investors in EB-5 program can get credit for all the jobs created or saved; critic suggests most EB-5 investments "are of much lower quality"
Atlantic Yards Report
I'm still waiting for more media outlets to latch on to the absurdity of the federal EB-5 program, which is exploding as immigrants seeking to buy their way into the country hook up with entrepreneurs who devise plans that aim to meet the letter, if not the spirit, of a vaguely defined law.
Remember, the $500,000 from each immigrant investor, which gains green cards for the investor and his/her family, is supposed to generate ten jobs.
In the case of Atlantic Yards, no new jobs would be created, but Forest City Ratner's raising $249 million from 498 investors who've been told, misleadingly, that they're investing in an arena.
Most people, learning that wealthy foreigners can buy their way into the country, are taken aback that the program even exists. I focus on whether the letter and spirit of the law are being followed, and whether there's sufficient oversight.
And, as noted below, critic David North suggests that most EB-5 investments are of lower quality than other deals on the open market, which makes sense, since the lure is not financial return but green cards.
Posted by eric at August 1, 2011 10:14 AM