Questions & Answers

When can an EB-5 regional center be terminated by USCIS?

On the list of USCIS terminated regional centers, it says that the regional center can be shut down if it does not file Form I-924A annually, or if it does not "promote economic growth as required." How does USCIS determine if a regional center is promoting economic growth? What would cause a regional center to be terminated by USCIS?

Answers

• Oliver Huiyue Qiu

  Immigration Attorney

  Answered on February 13, 2015

  USCIS terminates regional centers for a number of reasons. Failure to file an annual report or having been idle for a significant amount of time are some of the primary reasons. But there are other factors USCIS will consider. For example, it terminated a regional center along the Southern border for eliciting investors prematurely or stepping over the red line for unrealistic promise. In the situation of one Chicago regional center that was terminated, USCIS was alerted after the SEC filed criminal charges of securities fraud against the operators of the regional center.

• John J Downey

  Immigration Attorney

  Answered on February 12, 2015

  It is usually because of inactivity by the regional center.

• Anthony Korda

  Immigration Attorney

  Answered on February 12, 2015

  USCIS can withdraw a regional center's designation for a failure to file an I-924 annual return, as well as for a failure to attract investment. For this reason it is important to choose a project within a regional center that can show compliance and a good track record of attracting investors to its projects.

• Salvatore Picataggio

  Immigration Attorney

  Answered on February 12, 2015

  Inactivity may be a factor. That is, never actually accepting investors and providing no concrete plans to do so. Of course, issues like fraud or misrepresentation would result in termination.

• Denyse Sabagh

  Immigration Attorney

  Answered on February 12, 2015

  If the regional center has no projects and does not have documentation to prove that it is ongoing and operating.

• Vaughan de Kirby

  Immigration Attorney

  Answered on February 12, 2015

  If this is a question posed by a regional center, I recommend you immediately seek counsel with your chosen regional center attorney. If this question is posed by an investor - do not invest in any regional center that might raise this concern. Do get the counsel of an experienced EB-5 attorney and general securities principal.

• Yevgeny Samokhleb

  Immigration Attorney

  Answered on February 12, 2015

  A regional center may be terminated for not promoting economic growth if it is inactive for a long period of time, either due to lack of projects or failure to proceed with a project.