In recent years and as a response to isolated, high-profile fraud reports, several bills have been introduced in the House and Senate to include enhanced integrity measures that would reform the EB-5 Program and the EB-5 industry itself. With S. 1501 and H.R. 5992, respectively the American Job Creation and Investment Promotion Reform Act of 2015 and 2016 and S. 2415 and H.R. 4530, respectively the EB-5 Integrity Act of 2015 and 2016, legislative proposals have been drafted to ensure securities compliance, eliminate and prevent bad actors, prevent mismanagement of investor capital, increase investor transparency, and regulate third party promoters and agents.
The latest and most sophisticated integrity measure, or the Account Transparency Requirement provision in H.R. 5992 specifically tackles the most prominent EB-5 fraud activities with fund administration controls. As a response to Jay Peak, the Account Transparency Requirement introduces requirements of real time tracking and independent third-party administrators to promote accountability in the use of investor funds. Ultimately, the Account Transparency Requirement aims to deter, detect, discover, and then recover misappropriation of immigrant funds.
But what does this mean for immigrant investors, new commercial enterprises, and job-creating entities? Find out this and much more in NES Financial’s upcoming “Get Ahead: Why Best Practices Matter Now“ webinar on November 16, 2016. NES Financial’s Reid Thomas and Miller Mayer’s Stephen Yale-Loehr will discuss in depth legislative proposals, industry best practices, and practical solutions and strategies to navigate a changing EB-5 industry.
NES Financial welcomes your questions and opinions. Allow us to address your business needs by contacting us. We look forward to hearing from you!