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How can we get our investment back if the principal EB-5 investor died?

My father applied for the EB-5 visa two years ago with an investment of $500,000. He died 10 days ago. Can we get the money back, as the investor died, or should we wait another three years? How do we get it back?

Answers

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    BoBi Ahn

    Immigration Attorney
    Answered on

    You would need to look at the subscription agreement that your father/EB-5 investor signed as far as the terms of the return on funds are concerned but, in most cases, the death of the investor may not result in money back.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    First, look at the terms of the EB-5 Agreement. Then consult either the attorney who filed the petition and, if this through a regional center (RC), consult the RC as well. You should be able to resolve the situation. Advisably, you may need an attorney to help straighten things out.

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    Charles Foster

    Immigration Attorney
    Answered on

    I am sorry to hear about your father. If an EB-5 investor dies, he or she may be able to recoup their funds depending upon the terms of the investment. You should contact the EB-5 regional center or job creating entity and request same. Under certain conditions your family of the deceased investor can continue on with the immigrant process.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    I am sorry for your loss. If the investment was through a regional center project, you will need to look at the Limited Partnership Agreement and subscription documents to review the terms and see what happens when an EB-5 investor has passed away and how the investment will be returned in that case. If it was a direct investment, a limited partnership agreement, a limited liability company agreement or buy-sell agreement will generally govern the event of death of a partner or LLC member.

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    Irina Rostova

    Immigration Attorney
    Answered on

    I am sorry to hear about the loss of your father. Most likely you will not be able to receive the investment return early due to the death. Most projects are structured in a way that the investment continues to remain for the full term, despite a death of an investor. When the investment funds will be ready to be refunded, they will be considered a part of your father''s estate and will go to the person or persons who are entitled to the inheritance according to the will or the probate process. Some projects allow the investor to designate a beneficiary in their documents. If that was the case, the beneficiary that you father selected will be entitled to the return of the funds. You should contract the regional center for more details and make sure you work with an estate or probate attorney.

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    Ying Lu

    Immigration Attorney
    Answered on

    I am sorry for your loss. If you no longer wish to proceed with the EB-5 application, you can contact the regional center to seek the possibility of an early withdrawal. It all depends on the Limited Partnership Agreement your father signed with the regional center. However, if you still wish to proceed with the EB-5 application, you may want to refer to 8 CFR 216.6 (a)(6) and INA section 204(l) to see if you can continue the petition even though the principal has deceased. Talk to an experienced immigration attorney to find out the best route for you.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Unfortunately, this is not an issue that could be addressed by a general answer without looking at the subscription and the partnership agreements. Please consult with the immigration attorney that your father used, as well as the corporate attorney, to review the terms of those agreements.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Contact the project and review the documents your father signed.

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    Robert V Cornish Jr

    Securities Attorney
    Answered on

    I am sorry to hear about your loss. This question poses interesting issues, as the PPM for the project and the partnership/LLC agreement should have some provisions in there about the death of an investor/limited partner/member. You should review those documents. While I am not an estate attorney, the investment would be part of the decedent''s estate and might have to be handled through probate. That itself might lead the sponsor to honor a request to return the funds. Whatever the case, you are going to have to discuss this with the attorney handling your late father''s estate (and if you do not have one, get one), and also get someone involved who understands EB-5 investments to guide your estate attorney. I highly doubt there are many estate attorneys out there who know EB-5, but there may be some out there.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The death of the investor will not ordinarily provide a basis for refunding the money. You need to review the subscription agreement to determine the reasons for refunding the money.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    If your father had an investment immigration attorney, I recommend you contact him or her. Alternatively, you may want to contact the regional center directly. If you are in the United States you may also want to consult with a probate attorney.

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