Wednesday, June 15, 2016
SEC and EB-5 Regional Center agree to Offers of Settlement.
(Source: SEC) Respondents paid transaction based compensation to unregistered broker-dealers, causing the broker-dealers to violate Section 15(a)(1) of the Exchange Act. Those unregistered broker-dealers, who were mostly immigration attorneys, represented individuals seeking U.S. residency through the Immigrant Investor Program and recommended and helped effect the purchases of securities offered by American Life. For a period of time, Respondents paid transaction-based compensation to these unregistered broker-dealers for each investment that they facilitated.
Respondent American Life Shall pay a civil money penalty in the amount of $1,000,000 to the Securities and Exchange Commission for transfer to the general fund of the United States Treasury, subject to Exchange Act Section 21F(g)(3). Read settlement here.