It seems likely that an EB-5 investor will come to a regional center via a foreign migration agency. However, since the investor funds will likely be in escrow until I-526 approval, at what point in the process is it typical for the foreign migration agency to be paid? What restrictions are there on paying foreign migration agencies who subscribe EB-5 investors?
The S.E.C. regulations govern the legal circumstances on how and when foreign migration agents can be paid finders fees by the issuer. The agreement between the agent and the issuer will determine when and how the finders fees will be paid.
Regional centers might pay outside service providers, including foreign migration agencies, from their own revenue, exclusive of the investor''s EB-5 capital. They also might have access to syndication fees or administrative fees that are released to the regional center upon I-526 filing or approval, as agreed upon with the investor in the escrow agreement. Regional centers should have their own legal counsel to guide them, including getting advice on SEC matters, to make sure that the regional center is complying with all U.S. laws and regulations.
The restrictions are that regional centers may not pay "finders fees." Usually any fees are negotiated and paid overseas. Each agency will have their own practices. Beware of SEC regulations.
Generally migration agents are paid upfront from the subscription fees which are not put in escrow.
This deal is between the regional center and you. There are SEC laws that restrict the location of agency and advertisement venues...But the terms of fee is a contractual issue. What others do cannot be and should not be the standard of right and wrong.
