My husband and I started the EB-5 process a couple of years ago. After we signed the subscription agreement and sent most of the money in, we won the green card through the diversity lottery. So, we cancelled our agreement with the regional center and requested a full refund. It has been over a year now and we have not heard anything from them. Is there anything we can do to secure the return of the money?
As a start, you should certainly read the subscription agreement you signed prior to investing if you have not read it already. You should also look into all the other supporting documents that are referred to in the subscription agreement, such as the private placement memorandum. They would have spelled out the rules of your investment. Most projects allow for the investment funds to be returned if your I-526 is rejected for reasons beyond your control that is project related. At the same time, most projects will not obligate themselves to return your funds if suddenly you decide to voluntarily withdraw the funds for reasons independent of the EB-5 project, such as winning the diversity lottery. They would maintain that if they were to return your funds in that scenario that would not be fair to the rest of the EB-5 investors in the project because it would create undue risk of funding shortage. On the other hand, if you could find a substitute investor, however, who would be replacing the lost investment due to your withdrawal the regional center would most likely accommodate you and refund your investment. Best course of action here is to hire an attorney who could first precisely figure out your rights and then become your advocate with the regional center.
With respect to your decision to not pursue your EB-5 investor petition that was filed on your behalf on Form I-526 and your ability to re-coup your money, you would have to review with the assistance of your attorney, the pertinent documents (including the subscription agreement) and the private placement memorandum. Under the terms and conditions of your investment, you may not be eligible to immediately obtain same for some period of time, but it depends again upon the agreement you made at the time your EB-5 petition was filed.
That should be governed by the agreement. You should have your attorney review the provisions for a refund in your circumstance and pursue the return of funds.
Check the PPM and the subscription agreement. Most projects will be willing to refund if an I-526 is denied or withdrawn before approval, but again, depends on the project. Check with them.
Look at your subscription agreement. This has to be an irrevocable investment and winning the green card lottery is most likely not a ground for a refund.
For the sake of expediency, you should hire an attorney to undertake the resolution process. While it should not be the first option, a notice of legal action may be needed and should be considered.
That is a matter of the deal with the particular regional center, not an immigration matter. If the offering documents allow for refunds under only certain circumstances, you have to follow those.
You should refer to the clause of return of funds in the subscription documents. It should explain the process.
You need a contract attorney to review the documents you signed with the project and advise on your rights.
Your refund timing likely will depend on the terms of your subscription agreement and the text of the private offering memorandum. However, if you have the proper right to obtain a refund and one of the parties to the investment transaction is not complying with the terms of its own documents, then you may have to file a complaint in court.
The answer will depend upon the terms of the subscription agreement and related documents. If you have the right to a return of your funds, another demand from a lawyer may be enough for them to comply. If not, you may need to initiate some type of legal action, either in court or through arbitration. Such proceedings can be expensive and the right to recover attorneys? fees in addition to your investment will again depend upon what the documents say or any statute that might apply.
It depends on the terms laid out in the subscription documents. These documents should outline how and when the investment capital will be returned.
You need to review your offering documentation with the regional center project to determine how the EB-5 funds are to be returned in the event you wish to withdraw and not proceed with I-526 petition filing. We have had a few clients like that who successfully received funds back without any issues. Many projects require a replacement EB-5 investor for the return of EB-5 funds in order not to jeopardize other EB-5 investors in the project. You may want to hire a corporate lawyer to determine the course of action depending on what the project tells you why it is not reasonably prompt in returning EB-5 funds. It is likely your subscription fee is not refundable or possibly partially refundable.
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