What due diligence should be done in a redeployment scenario? - EB5Investors.com

What due diligence should be done in a redeployment scenario?

I am a China born investor. My I-526 has been approved but my priority date has not become current yet. Now my regional center told me that they would need to redeploy my investment capital and asked for my permission. Should I be involved in this? As far as I know, the first investment was successful and the required jobs have been created. The developer is able to return the money to us now. But I have heard about the “at risk” requirement from USCIS. What are my options here? Do I have to participate in the redeployment? What kind of due diligence should I do at this stage?

Answers

Blake Harrison

Blake Harrison

Immigration Attorneys
Answered on

The funds will need to be redeployed so that you meet the "at risk" requirement, which must be met to receive your permanent green card.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

Before you answer the request from the regional center, consult an attorney and comb through your agreement to ensure you are not unnecessarily exposed to risks associated with redeployment. Also, the fact that your permission is being sought indicates the issue is either not clearly addressed in your agreement or even not addressed at all. Generally, redeployment is not advisable and you do not need to participate as it may lead to material change in the business plan underlying your petition. Also, no amount of due diligence will prevent "the risk" associated with redeployment. It is advisable that you consult an attorney before you proceed on an option.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

Unfortunately you have to be involved with this because your Regional Center has indicated that they need to redeploy your investment capital in order to protect your right to remove your conditions. This is being done almost entirely for your benefit. Thus, unless you have some questions about the integrity of the Regional Center and the project developer, you would normally want to give permission. You are correct, the investment must remain "at risk" up until you become a permanent resident and you file your Petition to Remove Conditions. You should do the normal due diligence to get as much information as possible from the Regional Center about how the funds will be redeployed.

Jinhee Wilde

Jinhee Wilde

Immigration Attorneys
Answered on

Because your investment must be still invested and at risk until you submit your I-829, you really do not have a choice but to consent to the redeployment. You need to ask all the same questions you did when you were first investing in the project. Where is the money going, who controls it, what reports will you get and when, etc. The regional center must give you all the information and answer all the questions you have.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

It is very important that you be represented by independent legal counsel so that your rights are protected and you are fully informed. In order to receive your conditional green card (and in fact, in order to get the condition removed), you must demonstrate that you sustained your investment, in addition to creating the jobs within the two-year conditional period or within a reasonable time thereafter. You should consult with an attorney on this matter.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

Immigration Attorneys
Answered on

First, you need to read the PPM and subscription docs you signed at the time of I-526 filing. These will answer many of your questions. Then you need to discuss with your Immigration attorney regarding any decision making power (if any) you may have in this process.

Mark AM Catam, Esq

Mark AM Catam, Esq

Immigration Attorneys
Answered on

The investment must remain at risk throughout the entire sustainment period. Hence, the funds would have to be redeployed to remain at risk.

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