Saturday, May 27, 2017

Grassley Seeks Investigation of Chinese Companies’ Promises of Green Cards

(Source: US Senator Chuck Grassley) Senate Judiciary Committee Chairman Chuck Grassley asked the Department of Homeland Security and the Securities and Exchange Commission to review potentially fraudulent claims by two Chinese companies affiliated with the development of One Journal Square in Jersey City, N.J.
 
The Qiaowai Group and another private Chinese company calling itself the “U.S. Immigration Fund” have reportedly offered assurances to investors that they can provide a “permanent green card” and full protection of investor funds in exchange for investment into the One Journal Square project.  However, guarantees of this kind potentially violate the rules of the EB-5 Investor Visa program and certain securities laws, as EB-5 investments are required to be “at risk” for investors to qualify for upgraded immigration status.  Misrepresenting risk to potential investors may also constitute investment fraud.  The “U.S. Immigration Fund” has reportedly contributed millions of dollars to significant lobbying efforts to undermine reform of the chronically abused EB-5 visa program.
 
“Given all of these concerns, a closer look at Qiaowai Group and the U.S. Immigration Fund are clearly warranted, as reports suggest both companies have long employed questionable practices,” Grassley wrote in his letter.
 
Further, these companies claimed to have ties to the current administration, apparently because the One Journal Square development project involves Kushner Companies, which could raise further doubts about the integrity of the EB-5 program. See the letter at https://www.grassley.senate.gov/

2017 New Regulations and Trends: China Outbound Investments Seminar is taking place on June 6, 2017 in Chicago, Illinois.  Please register at https://2017investusa.eventbrite.com

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