Last week I wrote about the silver lining to the Chicago Convention Center case. On April 9th, the U.S. District Court Judge directed the return of more than $147 million funds held in escrow to the investors of the project. The fact that the investors would have their monies returned is welcome news to all industry stakeholders.
In a recent article in the National Law Review, the team from Sheppard Mullin highlighted the critical role that the escrow agent played in ensuring that the investor’s subscription funds were protected. The escrow agent in this case, followed the best practices promoted by NES Financial which enable the SEC to have time to do its review and all investors to have their funds returned.
Of course, while the right escrow processes are critical, it doesn’t take away from the fact that investors must always make sure they do their due diligence on a project or hire an experienced professional to help do so.
Also, investors should not only check whether there is an escrow being used, but should also carefully research and understand the release triggers of the escrow agreement. The existence of an escrow agreement on its own is not sufficient because the specific release terms contained in the agreement can vary widely. NES Financial is the leading provider of secure, transparent, and compliant EB-5 escrow solutions to over 70 Regional Centers and 150 projects.
NES Financial welcomes your questions and opinions. Allow us to address your business needs by contacting us. We look forward to hearing from you!