This story is from September 28, 2019

2 US senators introduce bill to tackle scams in EB-5 visa program

2 US senators introduce bill to tackle scams in EB-5 visa program
Mumbai: Two US Senators have introduced a bill, ‘The EB-5 Reform and Integrity Act, 2019’, to tackle fraud in the EB-5 Investor Visa Program. While this cash for green card scheme has recently attracted a lot of attention among rich Indians — including those who are currently holding an H-1B visa, it has seen more than its fair share of scams.
The bill calls for setting up an integrity fund, among other measures.
It proposes that regional centres and investors will pay fees to be used by the Department of Homeland Security (DHS) to conduct audits and site visits to detect and investigate fraud in the US and abroad.
Currently, the EB-5 program provides a green card to individuals who invest $ one million in a business project that creates ten jobs. The investment limit is lowered to half a million for investments in high unemployment and rural areas.
Investments under this program are typically made via regional centres, which pool funds from investors and invest in it in eligible projects — real estate projects are the most popular. After holding a conditional green card for 21 months, the investor can apply for permanent residence, subject to fulfillment of conditions.
Investors, largely from China and some from India, have lost money invested in dubious projects, where the funds were diverted and the requirements of the EB-5 program such as job creation were not met. Such scams leave investors high and dry without their obtaining the much-coveted green card.
In the largest scam, detected till date, recently three Oakland based businessmen were charged for raising $110 million from investors in China, India and Vietnam. The funds were diverted to buy properties including the Tribune Tower.

Regional centres will now have to contribute an annual fee of $ 20,000 or $ 10,000 (where investors number less than 20) to the fund. The investors, when applying for an immigrant visa, will have to pay a $ 1,000 fee.
The bill also calls for continuity of the regional centre programs up to September 2024. Under the bill, regional centres will also have to file detailed applications for investments in a particular project, which will reflect investment risks, pending litigation, conflicts of interests among others. This will provide more transparency to investors. DHS will also carry out background checks of the people associated with regional centres and projects.
As reported by TOI, new investment norms will kick in from November 21, requiring an investment of $ 1.8 million and $ 900,000 respectively. It should also be noted that Senator Rand Paul is seeking to block implementation of this upward proposed revision through a Congressional Review Act resolution.
Response on the provisions in the bill from immigration advocates is mixed. Some feel that recent scams have given a bad name to the program and the bill, if enacted, will provide some assurance to potential investors. Yet others are of the view that it will add to the investment costs.
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