As the popularity of the EB-5 Program increases year after year, it's more important than ever for EB-5 investors to learn how to avoid EB-5 Program fraud.
New cases of fraud continue to arise in the United States. The massive fraud allegations at Jay Peak ski resort in Vermont put the EB-5 Program in the news this year.
A new case in California has kept the EB-5 Program in the news. Husband and wife, Charles C. Liu and Xin Wang, defrauded 50 Chinese EB-5 investors out of nearly $27 million when they falsely claimed they would use the investment capital to build a proton therapy cancer treatment center in California and instead pocketed the money.
Despite these high-profile cases of fraud, the EB-5 Program continues to stimulate the U.S. economy by spurring investment and creating jobs for U.S. workers.
Learn how to avoid EB-5 Program fraud with these 5 tips:
- Due your due diligence when selecting an EB-5 agent. For more information about finding a reputable Chinese EB-5 agency, click here.
- Select a designated regional center that was a solid track record and reputation. For more information on selecting a regional center, click here. And for a list of questions you should consider when conducting due diligence into a regional center, click here.
- Select a regional center EB-5 project that is located in a major city and one that's in a major industry. Avoid EB-5 Program fraud by avoiding projects located in smaller cities and in less common industries (such as ski resorts and proton therapy centers). For more information about trending EB-5 industries, click here.
- Find a qualified EB-5 attorney that can not only review and file all your petitions, but one that can look at the regional center and proposed EB-5 project and find red flags. For more information about the an EB-5 attorney will look at when conducting due diligence for their EB-5 investor clients, click here.
- Familarize yourself with the regional center's economic report and learn how they propose to create indirect jobs. To learn more about how regional centers create indirect jobs, click here. For more information about the EB-5 professionals you should have on your team, click here.