FREE Sign upLogin
EM Capital Global Advisors has established an international practice group focused on assisting the full range of EB-5 stakeholders in troubled, fraud-related and underperforming EB-5 investments and litigation.

EM Capital Global Advisors has established an international practice group focused on assisting the full range of EB-5 stakeholders in troubled, fraud-related and underperforming EB-5 investments and litigation.

EM Capital Global Advisors, based in San Francisco, led by Seth Richard Freeman, CIRA, Senior Managing Director, has established an international practice group focused on assisting the full range of EB-5 stakeholders in troubled, fraud-related and underperforming EB-5 investments and litigation. Our Shenzhen based multilingual Senior Managing Director, Michael Changyao Chen, is available to assist Chinese investors and agents on protecting their investment and green card applications.

U.S. Senator Chuck Grassley's recent statement denouncing inaction on reforming the EB-5 Investment program highlights the urgent need for investors, their agents and immigration attorneys, as well as regional centers, project sponsors and their professionals and counter-parties, such as securities attorneys, broker dealers and senior lenders to adopt and implement a significantly higher level of investment management industry "best practices" and compliance policies and procedures.

We expect senior secured lenders that have financed EB-5 projects to abruptly realize their loans and the bank's reputation in relation to news about having lent on high-profile EB-5 projects that under-perform or fail due to fraud, require professional financial advisory services, including due diligence, forensic accounting, workouts, restructuring and interim fiduciaries, such as receivers. We imagine that many EB-5 senior lenders are not aware of the complexities of having 10, 50, 100 or more foreign investors, most of whom are Chinese with little understanding of the U.S. legal system individually and as a class, making claims against banks. Resolving such lawsuits and claims requires cross-cultural negotiation expertise and cross-border business experience.

Likewise, U.S. immigration lawyers, EB-5 regional centers and EB-5 project sponsors are also targets for suits and enforcement action brought by EB-investors and regulators. Securities attorneys that drafted private placement offering documents are equally exposed in claims related to investment fraud by anxious EB-5 investors seeking to protect their green card applications and investments.

While we believe that many of Senator Grassley's proposed EB-5 program reforms will be implemented, current and prospective EB-5 investors and their immigration attorneys and senior lenders should consider engaging professional firms such as EM Capital Global Advisors to provide financial advisory services intended to perform on-going monitoring and due diligence, and insist upon significantly higher frequency of project reporting and accounting and financial detail from regional centers and project sponsors. Investors and their advisors that suspect or have evidence of problems should not delay in seeking professional assistance. In general, investors and management wait too long to seek professional advice that only increases the challenges of mitigating and resolving complex situations and fraud-related problems. Feel free to contact me at seth.freeman@emcapitalmanagement.com.


https://www.linkedin.com/pulse/us-senator-grassley-denounces-inaction-flawed-eb-5-seth?trk=pulse_spock-articles


Subscribe for News

Site Digest


Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.