How can investors do due diligence on EB-5 regional centers and service providers?

The only effective way is to make sure you work with an experienced lawyer who acts as the quarterback or manager and can guide you through the process. There are only a handful that have been doing this for a long time. The key is to work with someone who has 10-20 years of experience, then they likely know the ropes.

First, you need to recognize that you will require (a) an immigration attorney to assist in preparation of your paperwork with USCIS and (b) a securities attorney to assist in the review of offering documents and operative corporate documents as well. Most securities attorneys in the EB-5 space are familiar with providers who run compliant operations and who have minimal amounts of customer complaints. These attorneys as well as skilled in the review of deal documents to ascertain what issues you may face on things such as redeployment, withdrawals, liability insurance and escrow decisions. The attorney can also assist in negotiation of better terms with the issuer. It should be noted that a securities attorney or an immigration attorney should not be giving investment advice. For this reason, it is strongly suggested that investors work with a broker-dealer who actually does research on projects that can then be reviewed more efficiently by counsel. While there are many attorneys who can assist you, your best place to start is through use of the sources at EB5investors.com. Many attorneys work differently from one another, in particular in matters of hourly rates and fee structures. You will need to find the ones with whom you are not only comfortable, but also those who mesh well with your own personality.

Investors should conduct extensive due diligence on the regional centers before proceeding and only consider reputable regional centers with strong track records of success, professional management, and reduced liability. The best situation is one where the regional center is also sponsoring its own active EB-5 projects and is not strictly a rent-a-center. The key here is that it is better to have a regional center with aligned incentives of remaining in compliance with the USCIS for the duration of the project. As part of the due diligence, investors should ask if the investors of a regional center have had any I-526 or I-829 petitions denied and, if so, why. Furthermore, legal compliance is essential. Regional centers must comply with both state and federal laws spanning numerous areas of legal practice. As a result, developers should ask potential regional centers what their procedure is to remain in compliance with all laws and USCIS policies. This is where having an experienced/knowledgeable immigration attorney is critical.

I would ask about their projects to date, immigration track record of I-526 and I-829 approvals. How many projects have been completed, how many jobs created. Their advisors who will give you an informed opinion on the financials of the project. For the attorney, you want to look at their reviews and arrange to talk to several to see who fits your style and how responsive. Does the attorney talk to you when you call; do you feel like you will be well taken care of, ask them if they have done many EB-5 cases - what types - have they been approved.

You should retain an investment advisor first and foremost.