As the industry trade association representing over 200 EB-5 Regional Centers across the country that account for well over 95 percent of all capital flowing through the EB-5 Regional Center Program (the “Program”), IIUSA has consistently supported Congress, regulators and other stakeholders to ensure the integrity and continued success of the Program. It is unfortunate that this week’s FORTUNE article used an old story of fraud committed by a criminal who has been brought to justice to characterize an entire industry that contributes billions of dollars to U.S. GDP, supports tens of thousands of American jobs, and generates hundreds of millions of dollars in federal, state, and local tax revenue – all at no cost to taxpayers.
No one is more committed to protecting the integrity of the Program than IIUSA and its members – which did not include Mr. Sethi. That’s why we filed an amicus brief in support of the SEC’s enforcement actionand publicly stated our support for the enhanced inter-agency collaboration necessary to protect the integrity of the Program. That’s why we have developed industry best practices and traveled all over the world to promote them, and why we conduct regular compliance training for our members. And, that’s why we have consistently supported strong oversight by Congress and regulatory agencies.
The long list of successful projects ignored in the story demonstrate the reality of the Program as a 21st century economic development tool — nearly 800 jobs at new senior living facilities in rural Washington State, more than 400 at a science incubator in Milwaukee, over 100 building and operating a much-needed medical facility in Riverside County, California, in addition to larger projects like the San Bernadino Regional Airport and Philadelphia Navy Yard where thousands of jobs were created. Those are just a few of the EB-5 success stories creating jobs in local communities.
In the words of Warren Buffet, Bill Gates and Sheldon Adelson: “People willing to invest in America and create jobs deserve the opportunity to do so. Expanded investments of that kind would help us jolt the demand side of our economy. These immigrants would impose minimal social costs on the United States, compared with the resources they would contribute. New citizens like these would make hefty deposits in our economy, not withdrawals.”
Like these titans of business, we stand with America’s job creators in support of EB-5.