How can you find out if an EB-5 project is legal?

Through diligent research of the persons involved, various government agencies and the project itself. They should be able to show you various documents evidencing government approval.

Ask for proof of regional center designation. Inquire how many I-526s and I-829s they had had approved. Have a securities analyst go over their finances to assure you of the legality and strength of the project. If the green card is the goal and not the investment return, then look for a good, solid immigration track record.

It is not a question of legal. If they claim to be a regional center, you can check it out with the USCIS web site. If it is just a project, then they need to provide you with all the documentation regarding the project and why they believe it will be accepted as an EB-5 project by USCIS. You need a business plan, a job creation analysis, operating agreement, partnership agreement, etc. Then you must perform your own "due diligence".

You should review the offering documents and the USCIS regional center designation letter. You could also hire an attorney or a due diligence firm to investigate the project and see if it is legitimate. As in any investment, there will be risks, but there is no reason to take unnecessary or unreasonable risks in deciding on an EB-5 investment.

Retain immigration counsel to review the EB-5 immigration law compliance. For the business viability, a financial or investment adviser can assist you.

As an eligible EB-5 investor, he should request and obtain all the offering documents, such as the description of the project, who the developer is, the partnership agreement and subscription agreement, etc. to review. He also should check on what kind of EB-5 track record that the project or regional center that is offering the project has. There are not that many EB-5 projects in Washington, D.C. so it would be easy to check.

Retain counsel and a due diligence service in the United States to guide your friend in the review of the documents, including performing due diligence to make sure the project is legitimate.