SEC Takes Action Against Unregistered Broker-Dealer Activity in EB-5

06.20.17 | Archived

Earlier this month, the Securities and Exchange Commission instituted cease-and-desist proceedings against licensed California attorney (“Respondent”). The Respondent violated Section 15(a)(1) of the Exchange Act by acting as an unregistered broker in connection with her representation of clients who were seeking U.S. residency through the Immigrant Investor Program. The respondent recommended that her clients participate in the Immigrant Investor Program by investing in securities offered through an EB-5 Regional Center and helped effect the purchases. In addition to receiving legal fees from her clients, Respondent received a commission from the Regional Center for each investment she facilitated.

The latest SEC action highlights the increasing attention the SEC is giving to unregistered broker dealer activity.

As Congress works on legislation to reauthorize and reform the EB-5 Regional Center Program, IIUSA looks forward to providing comments on reform measures to strengthen government enforcement capabilities and oversight responsibilities which serve to improve the EB-5 Program’s effectiveness as job creator.

IIUSA Members can access even more information on EB-5 related litigation through the member portal where we have curated a library of court documents through PACER. Not yet a member of IIUSA? Click here to learn more about our other member exclusive benefits.


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