<p>Comment: Attorney Risks<br/>
<p>
There are at least three distinct factors that go into the decision to make
an EB-5 investment, and there are three distinct kinds of licensed experts
that can advise investors about them.
<br/>
<br/>
1) Structured Finance:
<br/>
To evaluate an EB-5 investment one needs to be proficient in the field of
Structured Finance. One needs to evaluate the overall financial structure
for the project, and see where the EB-5 portion fits in. For example,
consider the following three aspects of Structured Finance.
<br/>
• Inter-creditor Agreement(s), especially Subordination Clauses: An EB-5
investment has multiple sources of capital: typically banks in a senior
position, EB-5 sharing the mezzanine position with other mezzanine
investments, such as preferred equity, bridge loans etc. Subordination
clauses govern the relative place and priorities of various investments.
These clauses can be very simple or very complicated or something in
between – and are usually part of an “Inter-creditor Agreement” which could
run into dozens of pages.
<br/>
• Underlying Asset in the deal terms/structure: EB-5 investments have a
complex structure. One needs to determine the value of the NCE’s agreement
with the JCE, especially as regards to what assets are pledged toward the
NCE’s loan. Sometimes the loan is secured by a hard asset such as
land/buildings, sometimes the equity of the JCE, which may or may not have
any value in liquidation proceedings and sometimes debt possessed by the
JCE, which could also be of questionable value in a work-out.
<br/>
• Various entities affecting the investor: We understand that large
projects in New York/Los Angeles/etc, have structures which involve more
than a dozen interacting entities, intimately affecting the NCE and JCE,
–and deal structures which require a combination of a mining engineer,
cartographer and a mini-Einstein to grasp.
<br/>
Structured Finance is a distinct area of law that takes many years to
master. Expertise in that field is needed to understand EB-5 investments
qua investments–and that should be left to those who have the expertise to
untangle the agreements, the clauses, the terms, the structures and the
assets and their relationship to an EB-5 investor to be able to suggest an
EB-5 security to an investor.
<br/>
<br/>
2) Financial Evaluation:
<br/>
Professionals giving financial advice are regulated by SEC. They are
trained to evaluate investments on several criteria such as:
<br/>
• Suitability: Evaluating suitability of the investment for an investor is
exactly what a FINRA registered financial advisor is trained and registered
to do. It is a complex skill obligating the advisor to adhere to certain
professional standards, which are set by SEC and FINRA.
<br/>
• Location: Simply looking at a record or reputation of a developer, or the
nature or location of the project is entirely inadequate to evaluate a real
estate investment. A developer with an illustrious record with a great
location and a successful project can still have a lousy investment
opportunity depending on the price.
<br/>
• Real Estate Expertise: Buying and selling homes is not a qualification
for evaluating the real estate value of a hotel in Los Angeles, a
residential tower in Manhattan or an assisted living facility in Florida.
There are distinct sectors and sub-sectors in the real estate market, each
with their own expertise.
<br/>
Giving financial advice without a FINRA license is a violation of SEC
rules, and is not covered by typical legal malpractice insurance that
immigration attorneys carry and leads to personal liability
<br/>
<br/>
3) Immigration Risks:
<br/>
Immigration attorneys can certainly evaluate the job cushions for the
project, calculate how many jobs have been created based on the models used
etc. They can distinguish projects based on whether the job cushion is 400%
or 4% etc.
<br/>
<br/>
Probably the optimal structure is the financial adviser quarterbacking the
advice–bringing in experts in Structured Finance and Immigration law as
needed. By unwittingly usurping all three functions, and making suggestions
to clients on the choice of EB-5 investments, or giving clients a short
list of “good’ or “reputable” projects or Regional Centers, immigration
attorneys risk their law licenses, expensive litigation, and their personal
assets by violating the SEC laws against investment advice. Advising
investors on financial viability of an investment without having a FINRA
license is a violation of SEC laws, and such violations are not covered by
standard malpractice insurance policies most attorneys carry, even EB-5
specific insurance, which is for legal advice and not for financial advice.
Though Chinese investors have not been litigious, that is not the case the
Indian or other nationalities that dominate today’s EB-5 market. Taking
this large a risk for a relatively small legal fee such as $25,000 makes no
economic sense, since the risks are more than 10 times to 30 times larger
than that. Don’t be sorry, be safe.
</p>
<p>
Please let us know your thoughts by writing to us at <a href=”mailto:editor@ilw.com” target=”_blank”>editor@ilw.com</a></p>.
<div></div>
<!– END Comment –>
<!– Article; Blogging; News –> <!– <p><a href=””></a> –>
<p><a href=”http://discuss.ilw.com/articles/articles/391715-article-amended-hr-1044-in-s-386-happening-now-amid-a-flood-of-concerns-by-alan-lee-esq” target=”_blank”>Article: Amended HR 1044 In S.386 Happening Now Amid A Flood Of Concerns By Alan Lee, Esq.
</a></p>
<p><a href=”http://discuss.ilw.com/blogs/cmusillo/391713-october-2019-visa-bulletin-analysis” target=”_blank”>Blogging: October 2019 Visa Bulletin: Analysis By Chris Musillo
</a></p>
<p><a href=”http://discuss.ilw.com/blogs/immigrationlawblogs/391705-trump-s-authoritarian-attempt-to-bypass-congress-and-overturn-1965-law-prohibiting-immigration-racial-discrimination-is-the-real-national-scandal-house-must-impeach-to-preserve-democracy-by-roger-algase” target=”_blank”>Blogging: Trump’s authoritarian attempt to bypass Congress and overturn 1965 law prohibiting immigration racial discrimination is the real “National Scandal”. House must impeach to preserve democracy By Roger Algase
</a></p>
<p><a href=”http://discuss.ilw.com/articles/news/391716-news-uscis-publish-re-registration-period-now-open-for-individuals-with-tps-under-syria%E2%80%99s-designation” target=”_blank”>News: USCIS Publish Re-Registration Period Now Open for Individuals with TPS under Syria’s Designation
</a></p>
<!– END Article; Blogging; News –>
<!– Focus –>
<p>Focus: October Schedule – Last Grace Period Events!<br>
<table border=”0″ cellspacing=”0″ cellpadding=”0″ width=”100%”>
<tbody>
<tr>
<td>
</td>
</tr>
</tbody>
</table>
<table border=”0″ cellspacing=”0″ cellpadding=”0″ width=”100%”>
<tbody>
<tr>
<td valign=”top”>
<table
border=”0″
cellspacing=”0″
cellpadding=”0″
align=”left”
width=”100%”
>
<tbody>
<tr>
<td valign=”top”>
<table
border=”1″
cellspacing=”0″
cellpadding=”0″
width=”498″
>
<tbody>
<tr>
<td width=”498″ colspan=”3″>
<p align=”center”>
<strong>
OCT INDIA & TURKEY
EXPOS
</strong>
</p>
</td>
</tr>
<tr>
<td width=”498″ colspan=”3″>
<p align=”center”>
<strong>
WESTERN INDIA
</strong>
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Sun, Oct 13 & Mon, Oct
14
</p>
</td>
<td width=”144″>
<p align=”center”>
Mumbai
</p>
</td>
<td width=”174″ rowspan=”4″>
<p align=”center”>
Limited Seats Available
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Tues, Oct 15 & Wed, Oct
16
</p>
</td>
<td width=”144″>
<p align=”center”>
Surat
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Thurs, Oct 17 & Fri,
Oct 18
</p>
</td>
<td width=”144″>
<p align=”center”>
Baroda
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Sat, Oct 19 & Sun, Oct
20
</p>
</td>
<td width=”144″>
<p align=”center”>
Ahmedabad
</p>
</td>
</tr>
<tr>
<td width=”498″ colspan=”3″>
<p align=”center”>
<strong>TURKEY</strong>
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Friday, Oct 25
</p>
</td>
<td width=”144″>
<p align=”center”>
Istanbul
</p>
</td>
<td width=”174″ rowspan=”4″>
<p align=”center”>
Limited Seats Available
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Saturday, Oct 26
</p>
</td>
<td width=”144″>
<p align=”center”>
Izmir
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Sunday, Oct 27
</p>
</td>
<td width=”144″>
<p align=”center”>
Ankara
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Monday, Oct 28
</p>
</td>
<td width=”144″>
<p align=”center”>
Istanbul
</p>
</td>
</tr>
<tr>
<td width=”498″ colspan=”3″>
<p align=”center”>
<strong>
OCT H1B TO EB5 EXPOS IN
THE US
</strong>
</p>
</td>
</tr>
<tr>
<td width=”498″ colspan=”3″>
<p align=”center”>
<strong>US WEST</strong>
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Thursday, Oct 3
</p>
</td>
<td width=”144″>
<p align=”center”>
St. Louis, MO
</p>
</td>
<td width=”174″ rowspan=”4″>
<p align=”center”>
Limited Seats Available
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Friday, Oct 4
</p>
</td>
<td width=”144″>
<p align=”center”>
Denver, CO
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Saturday, Oct 5
</p>
</td>
<td width=”144″>
<p align=”center”>
San Francisco, CA
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Sunday, Oct 6
</p>
</td>
<td width=”144″>
<p align=”center”>
Seattle, WA
</p>
</td>
</tr>
<tr>
<td width=”498″ colspan=”3″>
<p align=”center”>
<strong>US CENTRAL</strong>
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Thursday, Oct 10
</p>
</td>
<td width=”144″>
<p align=”center”>
NYC Metro Area
</p>
</td>
<td width=”174″ rowspan=”4″>
<p align=”center”>
Limited Seats Available
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Friday, Oct 11
</p>
</td>
<td width=”144″>
<p align=”center”>
Washington DC
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Saturday, Oct 12
</p>
</td>
<td width=”144″>
<p align=”center”>
Charlotte, NC
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Sunday, Oct 13
</p>
</td>
<td width=”144″>
<p align=”center”>
Tampa, FL
</p>
</td>
</tr>
<tr>
<td width=”498″ colspan=”3″>
<p align=”center”>
<strong>US CENTRAL</strong>
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Thursday, Oct 17
</p>
</td>
<td width=”144″>
<p align=”center”>
Pittsburgh, PA
</p>
</td>
<td width=”174″ rowspan=”4″>
<p align=”center”>
Limited Seats Available
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Friday, Oct 18
</p>
</td>
<td width=”144″>
<p align=”center”>
Columbus, OH
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Saturday, Oct 19
</p>
</td>
<td width=”144″>
<p align=”center”>
Cincinnati, OH
</p>
</td>
</tr>
<tr>
<td width=”180″>
<p align=”center”>
Sunday, Oct 20
</p>
</td>
<td width=”144″>
<p align=”center”>
Indianapolis, IN
</p>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<table border=”0″ cellspacing=”0″ cellpadding=”0″ width=”100%”>
<tbody>
<tr>
<td valign=”top”>
</td>
</tr>
</tbody>
</table>
<table border=”0″ cellspacing=”0″ cellpadding=”0″ width=”100%”>
<tbody>
<tr>
<td>
</td>
</tr>
</tbody>
</table>
<table border=”0″ cellspacing=”0″ cellpadding=”0″ width=”100%”>
<tbody>
<tr>
<td valign=”top”>
<table
border=”0″
cellspacing=”0″
cellpadding=”0″
align=”left”
width=”100%”
>
<tbody>
<tr>
<td valign=”top”>
<p align=”center”>
<strong>About H1B to EB5 Expos:</strong>
</p>
<p align=”left”>
<br/>
In the last 19 months, ILW
has conducted 70+ H1B to EB5 expos in 17
cities across U.S.,
2480+ attendees, 90% are Indian H1Bs.
</p>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<p>
<strong>
H1B to EB5 Expos
Format:
</strong>
</p>
<ul type=”disc”>
<li>
Half Day Event for
Indian H-1Bs
considering EB-5 Option
(Speaking Opportunity
included). Please bring
brochures, PowerPoint
presentation, table
displays and business
cards.
</li>
<li>
Special Note for
Attorneys: This event
will feature two
immigration attorney
panels solely on
immigration law
matters. The only way
an immigration attorney
can participate and
speak at this event is
if they are nominated
by an issuer who is
exhibiting at the event
(there is no fee
charged to immigration
attorneys).
</li>
</ul>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<p align=”center”>
<strong>
About India Expos:
</strong>
</p>
<ul type=”disc”>
<li>
India is the #1 EB5
Country, larger than
the rest of the world
combined, including
China.
</li>
<li>
India is currently the
world’s fastest growing
major economy, it is
growing faster than
China, the number of
new millionaires
created each year in
India is more than
China.
</li>
<li>
We will quickly put you
in front of investors
and agents to present
your project to. Our
expos will flood you
with many prospects in
a short time.
</li>
</ul>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<table border=”0″ cellspacing=”0″ cellpadding=”0″ width=”100%”>
<tbody>
<tr>
<td valign=”top”>
<table
border=”0″
cellspacing=”0″
cellpadding=”0″
align=”left”
width=”100%”
>
<tbody>
<tr>
<td valign=”top”>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<p>
<strong>
India Expos Format:
</strong>
</p>
<ul type=”disc”>
<li>
Expo featuring seminar
and exhibition; Mini
meetings with investors
and agents.
</li>
<li>
Please bring brochures,
PowerPoint
presentation, table
displays and business
cards.
</li>
<li>
Special Note for
Attorneys: The only way
an immigration attorney
can participate and
speak at this event is
if they are nominated
by the issuer
exhibiting at the
custom expo. (there is
no fee charged to
immigration attorneys).
</li>
</ul>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<table border=”0″ cellspacing=”0″ cellpadding=”0″ width=”100%”>
<tbody>
<tr>
<td valign=”top”>
<table
border=”0″
cellspacing=”0″
cellpadding=”0″
align=”left”
width=”100%”
>
<tbody>
<tr>
<td valign=”top”>
<table
border=”0″
cellspacing=”0″
cellpadding=”0″
align=”left”
width=”100%”
>
<tbody>
<tr>
<td valign=”top”>
<p align=”center”>
<strong>
About Turkey Expos:
</strong>
</p>
<ul type=”disc”>
<li>
Turkey is the fastest
growing of the smaller
EB5 markets, has
significant population,
and serious reasons to
move families to USA.
English is widely
spoken in Turkey
</li>
<li>
Turkey has 80 million
people, 18th largest
country in the world.
Turkey is NOT a poor
country, its GDP is
$751 billion, also 18th
largest in the world
(in other words, it has
a large number of
millionaires and
deca-millionaires)
</li>
</ul>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<table border=”0″ cellspacing=”0″ cellpadding=”0″ width=”100%”>
<tbody>
<tr>
<td valign=”top”>
<table
border=”0″
cellspacing=”0″
cellpadding=”0″
align=”left”
width=”100%”
>
<tbody>
<tr>
<td valign=”top”>
<table
border=”0″
cellspacing=”0″
cellpadding=”0″
align=”left”
width=”100%”
>
<tbody>
<tr>
<td valign=”top”>
<p>
<strong>
Turkey Expos Format:
</strong>
</p>
<ul type=”disc”>
<li>
Expo featuring seminar
and exhibition;
Meetings with
investors.
</li>
<li>
Please bring brochures,
PowerPoint
presentation, table
displays and business
cards.
</li>
<li>
Special Note for
Attorneys: The only way
an immigration attorney
can participate and
speak at this event is
if they are nominated
by the issuer
exhibiting at the
custom expo. (there is
no fee charged to
immigration attorneys).
</li>
</ul>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<br/>
<!– END Focus –>
<!– Headlines –>
<a name=”Headlines” id=”Headlines”></a>
<!– Headline: <a href=””>Click here</a><br/> –>
<p>
Headline: Immigration courts irredeemably dysfunctional and on the brink of collapse
<a href=”https://thehill.com/opinion/immigration/462577-immigration-courts-irredeemably-dysfunctional-and-on-the-brink-of” target=”_blank”>Click here</a><br>
Headline: A U.S.-El Salvador Asylum Deal and Border Patrol Agents Interviewing Families
<a href=”https://www.wnycstudios.org/podcasts/takeaway/segments/us-el-salvador-asylum-deal-border-patrol-agents-interviewing-families” target=”_blank”>Click here</a><br>
Headline: EB-5 Visa changes: Only two months before cost of US entry rockets
<a href=”https://www.biznews.com/sponsored/2019/09/23/eb-5-visa-changes” target=”_blank”>Click here</a><br>
Headline: 526 people were asked to talk politics. The response tested American democracy
<a href=”https://www.cnn.com/2019/09/23/politics/america-in-one-room-political-discussions/index.html” target=”_blank”>Click here</a><br>
Headline: Fake court dates are being issued in immigration court. Here’s why
<a href=”https://www.chicagotribune.com/sns-tns-bc-immigration-fakedates-20190923-story.html” target=”_blank”>Click here</a><br>
</p>
<!– END Headlines –>
<!– Service Provider –>
<!– END Service Provider –>
<!– Classifieds –>
<p>Help Wanted: Immigration Paralegal<br/>
<p>Washington DC – The DC office of Steptoe & Johnson LLP, a Washington, DC based law firm, has an opening for a full-time experienced paralegal to support our busy immigration practice. Minimum of two – five years of immigration paralegal experience preparing non-immigrant (e.g., H-1B, L-1, E-2, O-1) and immigrant (PERM, EB-1 and EB-5) filings. Provide support in preparation and filing of petitions and applications with federal government agencies. Versed in consular processing and practices. Assist with such tasks as: preparing routine correspondence, researching immigration law and procedures, and case management. Play a significant role in gathering information from clients and assisting with immigration strategies. Prepare draft RFE responses, appeals and memoranda. Experience with compliance issues: E-verify and I-9 audits. Knowledge of web-based case management system. Excellent attention to detail and strong organizational and communication (oral and written) skills. Ability to work efficiently in a fast-paced environment with an emphasis on ability to work with a team. Strong skills in working on multiple projects. A four year college degree is required. </p>
<p>Please submit cover letter, resume and writing sample to <a href=”steptoeimmigration@gmail.com”>steptoeimmigration@gmail.com</a></p>
<!– END Classifieds –>
<!– Letters to the Editor –>
<p><a href=”http://discuss.ilw.com/blogs/idblog/391717-letters-of-the-week-sep-23-sep-27″ target=”blank”>Letters of the Week</a></p>
<!– END Letters to the Editor –>
<!– ComingsNGoings –>
<a name=”CNG” id=”CNG”></a><p>Immigration Reading</p>
Mobilizing Global Knowledge: Refugee Research in an Age of Displacement
By Susan McGrath, Julie E.E. Young, et al.
University of Calgary Press, 336 pp.
Paperback, ISBN: 1773850857, $42.99 <a href=”https://www.amazon.com/Mobilizing-Global-Knowledge-Research-Displacement/dp/1773850857/”>https://www.amazon.com/Mobilizing-Gl…dp/1773850857/
</p>
<!– END ComingsNGoings –>
<p>
<hr class=”ilwDailyLine”/>
<span class=”ilwFinePrint”>An Important disclaimer! The
information provided on this page is not legal advice.
Transmission of this information is not intended to create, and
receipt by you does not constitute, an attorney-client
relationship. Readers must not act upon any information without
first seeking advice from a qualified attorney. Copyright
1995-2017 American Immigration LLC, ILW.COM. Send correspondence
and articles to <a href=
“mailto:editor@ilw.com”>editor@ilw.com</a>. Letters and articles
may be edited and may be published and otherwise used in any
medium. The views expressed in letters and articles do not
necessarily represent the views of ILW.COM.</span>
<hr class=”ilwDailyLine”/>
<a name=”publisher” id=”publisher”></a> <!–PublisherEditor–>
Publisher: Sam Udani ISSN: 1930-062X<br/>
<a href=”http://www.ilw.com/immigrationdaily/advisoryboard.shtm”>Advisory
Board</a>: Jason Dzubow, Rami Fakhoury, Matthew Kolken, Chris Musillo,
Lory Rosenberg, Greg Siskind, Joel Stewart, Margaret Wong
<!–END PublisherEditor–>
{$inline_image
