Questions & Answers

What qualifies as lawful source of funds documentation for EB-5?

I have sold an internet domain name for more than $1 million. I have screenshots and emails as proof of the sale. Would these documents be sufficient to prove my lawful source of funds for the purpose of applying for an EB-5 visa? What qualifies as lawful source of funds documentation for EB-5?

Answers

• A Olusanjo Omoniyi

  Immigration Attorney

  Answered on May 26, 2015

  There is no hard and fast rule on what constitutes "lawful source of funds" as cases are evaluated case-by-case based on their underlying facts. In your circumstance, based on your facts, it seems you may be able to prove your fund is lawful. However, additional facts are needed and your case needs to be evaluated based on facts and documentation presented that address issues such as the business history, ownership, the sales, your compliance with the relevant laws within the country where the sales were done, just to name a few issues to be considered. All these issues require conducting a good due diligence analysis that everything was lawfully done. Advisably, consulting an EB-5 attorney should be your next procedure to ensure all rules and regulations are followed.

• John J Downey

  Immigration Attorney

  Answered on February 4, 2015

  I think what you have is sufficient to prove sources of funds. There is a list of documents, i.e. tax returns, etc. that they also like to see - check the USCIS website.

• Ed Beshara

  Immigration Attorney

  Answered on February 4, 2015

  The investor has to show clearly the authentication of the lawful source of funds. The investor may need to show how they obtained funds to own the assets which formed the basis for the source of funds.

• Oliver Huiyue Qiu

  Immigration Attorney

  Answered on February 4, 2015

  You seem to have exceptional insights on investment. $1 million earnings on selling ONE internet domain! Given proper documentation, especially how much you paid for the domain initially, this could be considered the lawful source of fund. You will need to document the transaction, such as sales contract, down to the trail of bank documents showing how the proceeds went into your personal bank account. And how it is transferred to the New Commercial Enterprise in the United States as your EB-5 investment.

• Fredrick W Voigtmann

  Immigration Attorney

  Answered on February 4, 2015

  You might have to provide evidence that the domain name belonged to you; you would need to show the written sales agreement for the transaction (or proof that the emails are authentic, i.e., buyer''s business information and background), and clear bank statements or transfer receipts showing that the funds were transferred to your personal bank account. In addition, if there were any income taxes to be paid, you might have to show your tax return to prove that you paid the taxes, or show proof that there was no requirement to pay income or other taxes on this transaction.

• Ian E Scott

  Immigration Attorney

  Answered on February 4, 2015

  To prove lawful source of funds for an EB-5 visa, you must prove that the money came from a legitimate source. Based on what you have written, you would have to prove that you lawfully owned or purchased the internet domain and where that money came from, and then provide details of the sale and wire transfers. An email will not be sufficient and there should be a sale agreement and any other detail that shows legitimacy of the transaction. USCIS may even look at where the purchaser got the money from depending on the facts and circumstances (e.g. if it was not an arms'' length sale).

• Lynne Feldman

  Immigration Attorney

  Answered on February 4, 2015

  That should work.

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on February 4, 2015

  This document is a start, but you also need to carefully document the path of funds from the date of earnings until the actual investment, which must be maintained in the company.

• Sufen Hilf

  Immigration Attorney

  Answered on February 4, 2015

  Documents related to the ownership of the domain name, how much it cost for you to own that domain name, and tax paid for the sale should be submitted too.

• Salvatore Picataggio

  Immigration Attorney

  Answered on February 4, 2015

  Emails and such may help, but an actual contract or document of sale or something more legally binding could be best.

• Wilka Toppins

  Immigration Attorney

  Answered on February 4, 2015

  Yes - capital from the sale of an investor''s assets count towards EB-5 capital. You will have to prove though that you were the legitimate owner of the domain with the legal authority to sell it and that the valuation is legitimate. I think it is doable.

• Dale Schwartz

  Immigration Attorney

  Answered on February 4, 2015

  This should work just fine!

• Jinhee Wilde

  Immigration Attorney

  Answered on February 4, 2015

  This will give you a start, but we will need much more documentation of how you owned such a domain name, how you paid for it, how long you have had it, along with bank account statements, etc. You should work with an experienced EB-5 lawyer as the petition package will have to include a careful tracking of all the money before and after the transactions.

• Mark Szu-Yu Chang

  Immigration Attorney

  Answered on February 4, 2015

  The burden of proof that invested capital was obtained through lawful means is on the petitioner. As a result, the documents you currently have may be sufficient enough to meet the requirement. However, it is highly recommended that you present these documents for careful review with an immigration lawyer first at the consultation.

• Yevgeny Samokhleb

  Immigration Attorney

  Answered on February 4, 2015

  Those documents would not be sufficient. You would also have to provide bank and tax records, and various documentation relating to your original acquisition of the domain.

• Stephen Berman

  Immigration Attorney

  Answered on February 4, 2015

  Yes, that should work.

• Matthew Kolodziej

  Immigration Attorney

  Answered on February 4, 2015

  Yes, if this sale was lawful under the laws of the country under which the sale occurred, this is likely a lawful source of funds. You may need to document the legality of the sale by providing the sales contract, and relevant taxes and laws.