CHICAGO, October 1, 2013 – The Association to Invest In the USA (IIUSA), the trade association representing more than 100 EB-5 Regional Centers, supports the recent action of the U.S. Securities and Exchange Commission (SEC) to stop a Regional Center in Texas from allegedly defrauding EB-5 investors. (See SEC press release). IIUSA also applauds the U.S. Citizenship and Immigration Services (USCIS) for its cooperation with the SEC in the matter.
“Proper oversight, transparency, compliance with – and enforcement of – all applicable securities, anti-fraud and immigration laws and regulations are essential to maintain the confidence of all industry stakeholders and ensure that the EB-5 program continues to bring capital and job creation to American communities”, said Peter D. Joseph, Executive Director of IIUSA.
“Our position is clear: efficient and effective enforcement of U.S. securities laws is as essential for the EB-5 program as it is for any investment vehicle,” said K. David Andersson, President of IIUSA.
The EB-5 Regional Center economic development program successfully spurs U.S. job creation and economic growth by attracting foreign direct investment in the United States. A comprehensive peer-reviewed economic study found that from 2010-2011, investments made through the EB-5 program contributed $2.2 billion to U.S. GDP and supported over 28,000 jobs at no cost to taxpayers. IIUSA’s members account for 95 percent of all capital raised through the EB-5 program.
IIUSA has a track record of working cooperatively with USCIS and other regulatory agencies to strengthen the program through effective enforcement of anti-fraud, securities and immigration law. For example, IIUSA recently filed an amicus brief supporting SEC action to stop a Regional Center and developer from making misleading claims about investment opportunities.
Other initiatives supported by IIUSA include:
- An “Investor Alert” jointly issued by the SEC and USCIS that provides prospective EB-5 investors with information on conducting due diligence evaluations of EB-5 securities offerings.
- Distribution of guidance published by FINRA for broker-dealers marketing EB-5 related securities.
- Support for several important reforms included in the comprehensive immigration reform legislation that recently passed the full Senate that would strengthen law enforcement and national security protections.
“Investments made through EB-5 Regional Centers provide a new, vital source of funding for local economic development projects, often in partnership with local governments and economic development agencies. These successful projects are revitalizing communities across the country, creating and supporting jobs, infrastructure and services,” noted Joseph. “Protecting the integrity of the program is critical to continue bringing jobs and economic benefits to cities and towns across the country.”
Founded in 2005, the Association to Invest In the USA (IIUSA) is the national not-for-profit industry trade association for the EB-5 Regional Center Program, representing well over 100 Regional Center members that account for over 95 percent of the capital flowing through the Program. IIUSA represents the industry in government and public affairs, telling the story of how the EB-5 Program has become a fundamental part of U.S. economic development policy – with operations covering advocacy, industry development, and education. An essential part of IIUSA’s mission is to stimulate economic development and job growth through continued success of the program as well as advance and maintain industry standards and best practices.