Invest In the USA (IIUSA), the non-profit trade association representing more than 275 EB-5 Regional Centers, fully supports recent action taken by the U.S. Securities and Exchange Commission (SEC) to stop a Washington company from allegedly misusing investor funds.
Our position is clear: efficient and effective enforcement of U.S. securities and anti-fraud laws is as essential for the EB-5 program as it is for any investment vehicle. We welcome active oversight of the program by federal and state securities regulators to protect investors and maintain confidence in the program. This latest action by the SEC makes clear that federal authorities are taking appropriate and active steps to deter fraudulent activity.
The EB-5 program is an increasingly important economic development tool that successfully spurs U.S. job creation by attracting foreign direct investment in the United States. A comprehensive, peer-reviewed economic study found that during fiscal year 2013, $ 1.98 billion was invested through the program, contributing $3.58 billion to GDP and supporting over 41,000 jobs. And, foreign direct investment through EB-5 totaled $1.8 billion in the first two quarters of fiscal year 2015, putting the program on track to nearly double the FDI from fiscal year 2013.
IIUSA has a track record of working cooperatively with the SEC, USCIS and other regulatory agencies to strengthen the integrity of the program. We regularly provide our members with opportunities to hear from experts in securities and immigration law – including representatives from federal and state regulatory agencies — to better understand program requirements and support their compliance. And, IIUSA filed an amicus brief supporting SEC action to stop a Regional Center and developer in Chicago from making misleading claims about investment opportunities.
As Congress considers legislation to reauthorize the program, we look forward to a productive dialogue on measures to further enhance program integrity.