How can my client get her EB-5 investment back before an application is made? - EB5Investors.com

How can my client get her EB-5 investment back before an application is made?

I have a client who provided $500,000 to an agent, but has changed her mind and does not want to go forward. I have not seen any contract. If no progress is made, would the investment be refunded?

Answers

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

Regardless of the fact that you "have not seen any contract," there might be a series of other legally binding documents such as the subscription agreement or similar documents that might have encumbered this fund. Get all the facts and documents from the client and the agent in question, then review them before you proceed further. A negotiation may resolve this type of issue but, at times this type of situation may not be released without litigation. Further, the payment of $500,000 also raises a legal issue. Why was the $500,000 paid? Could it be a part-payment for an EB-5 project the client wanted to invest in? This is because $500,000 does not meet the minimum required EB-5 investment amount. Your client needs a minimum of $900,000 for projects in a TEA area or as much as $1.8million in an urban area. Which was he investing in? Advisably, consult an EB-5 attorney for possible strategies because. dealing with this type of situation particularly through an agent is fraught with untidy legal procedures.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

The subscription agreements do not ordinarily provide for people to get their money back unless the EB-5 petition is denied. Absent fraud or misrepresentation would be at the discretion of the project.

Lynne Feldman

Lynne Feldman

Immigration Attorneys
Answered on

It depends on terms of documents signed. The money should have been in escrow before that time.

Sam Silverman

Sam Silverman

Business Plan Writers
Answered on

You would need to see what she has signed so far and review the projects offering documents.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

Immigration Attorneys
Answered on

The right thing to do would be to return the funds but sub docs will address the legal recourse of the investor.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

First, the minimum investment amount is $900,000, not $500,000. Whether the money will be refunded depends on who the agent is and if he or she is honorable and trustworthy (or can be coerced into doing the right thing and returning the funds). Hopefully, there is some documentation or evidence regarding the transfer of the funds and what the funds were for. Transferring EB-5 funds to agents and not directly to the EB-5 project after signing the agreements is not wise.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

It may depend on what she has signed with the project/agent. If she has not filed any immigration paperwork, I would not see why she could not get funds back otherwise.

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