A lawsuit, originally filed in October 2019, claimed investors were defrauded in making EB-5 investments. The investors applied to U.S. Citizenship and Immigration Services after making the investment. Their petitions were denied, stating it was unclear if the funds had been used to create the property or if the required jobs would be created.

The defendants worked to throw out the plaintiffs’ original suit. The plaintiffs refiled their claim. The second suit has been thrown out and permanently closed when the filing failed to provide adequate proof that the investors had been defrauded.

In another matter, a lawsuit filed in California in 2015 for EB-5 fraud was reconsidered. A fund created when the lawsuit was finalized created a fund to be paid out to investors affected by that fraud. The law firm that originally filed the lawsuit was not granted any fees. The funds are managed by the Securities and Exchange Commission (SEC) and as such, law firms are not eligible to receive funds from a federal receivership. Upon further review, the firm has been granted a fee given the presumption that without their filing, the funds may have been lost or hidden.

The importance of these separate matters is the same. If you are considering an EB-5 investment in order to qualify for a visa, it is critical to work with an experienced immigration attorney. Due diligence in terms of investigating the investment opportunity is critical to protect yourself and your funds.

If you have questions about the EB-5 visa or any other immigration-related issue, contact us at ILBSG. Our attorneys have extensive experience across immigration visas. We put our expertise to work for you to ensure you get the right advice.

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