I’ve worked with foreign investors seeking to live in the U.S. since 1974. The current program, called EB-5, was started in 1990 as a means of promoting economic development. In its early years it was so limited very few investors came forth. When other nations, like Canada, attracted investors and let them live in their country, the U.S. took note and expanded the program. If the rules are followed, it works well – projects get funded (with otherwise unavailable or more expensive alternatives), jobs are created, talented and wealthy individuals come to live in the U.S. However, as is true in many “too good to be true” opportunities, greed begets cheating but it is accepted because “everyone is doing it”. Unfortunately, the flood of developers wanting cheap money and investors needing to move funds broke the dam of the government’s compliance efforts. The government has been overwhelmed, the SEC has gotten under the tent, and investigations appear to be uncovering actors from benign negligence to outright fraud.
It will be a shame if the politicians burn down the barn to get rid of rats. The EB-5 program brings in funding for needed projects and creates new jobs. The government’s job should be to create a better set of rules, provide timely service and enforcement, and let entrepreneurs do what they do best. Then everyone wins – the investor, the developer, and the community.
Please click here to read the full article – http://abcnews.go.com/US/forget-red-cards-soccers-500k-green-card-wealthy/story?id=39169790
