CRE Petitions DHS for Rulemaking to Reform the EB-5 Program to Create Jobs in Rural America & Areas of High Unemployment

CRE Petition for Rulemaking

Editor’s Note: A successful petition is often premised on:

(1) Sstakeholders posting comments on the petition in the space provided below:

Here are the results of informed comments.

(2) The credibility of the organization sponsoring the IPD. 

All stakeholders are encouraged to submit comments in the space provided below; we accept anonymous comments.

New York’s Moinian Group launches tower in Hudson Yards

From: Reuters

Herbert Lash

Should the EB-5 Investor Visa Program Recognize Cyber Workers?

From: CircleID

By Bruce Levinson


There is no statutory requirement that new commercial enterprises be physically located in TEAs in order for investors to qualify for the TEA provisions of the EB-5 program. To the contrary, the statute states that investor visas “shall be reserved for qualified immigrants who invest in a new commercial enterprise … which will create employment in a targeted employment area.”

Judge quashes whistleblower deposition in EB-5 investor case against state

VTDigger published an article titled, “Judge quashes whistleblower deposition in EB-5 investor case against state.” The article reads in part as follows;

judge has ruled that, for now, defrauded EB-5 investors in a class action lawsuit against the state cannot take the deposition of a key whistleblower in the case.

Lamoille County Superior Court Judge Thomas Carlson quashed the plaintiffs’ request for the deposition of Douglas Hulme, citing state rules prohibiting discovery until the defense has an opportunity to respond.

DHS’s Path to Executive Order Compliance Becomes Trickier with Release of its 2017 Unified Agenda Update

The Unified Agenda Update shows that DHS’s path for complying with President Trump’s one-in, two-out Executive Order 13771 has become a tight needle to thread. The Update lists over a dozen DHS rules in Final Rule Stage. Within USCIS alone, there are four rules in the Final Rule stage and another three rules in the Proposed Rule Stage.

New additions to DHS/USCIS list of regulations in the Final Rule Stage include

  • The EB-5 Immigrant Investor Program Modernization rule which previously was in the proposed rule stage.

Listening Session on EB-5: Pre-dissemination Requirements under the Data Quality Act (DQA)

OMB guidelines implementing the DQA state:

As a matter of good and effective agency information resources management, agencies shall develop a process for reviewing the quality (including the objectivity, utility, and integrity) of information before it is disseminated.

An agency spokesman replied that it would comply with all applicable statutes and regulations, including the Data Quality Act. The agency is to be complimented for  its commitment to the quality of the information  it disseminates.

There Are Options for Addressing Fraud in the EB-5 Program

Editor’s Note: One  of the loudest criticisms of the EB-5 program is that it harbors fraudulent actions. A widely reported action deals with the “the largest fraud case in the federal EB-5 immigrant investment program’s history.”  The USCIS proposed regulations do not address fraud; for this reason   CRE is examining a range of options for combatting fraud and will be reporting its findings on this website.  If implemented the CRE option will allow the honest participants in the program to continue operations without a dark cloud over their operations.

Senatorial Letter on the EB-5 Program

Four Senators wrote an EB5 Letter to Secretary Kelly .

The thrust of the letter is:

The issue of raising minimum Investment levels alone will likely undermine the  program’s functionality.

The EB-5 Regional Center Program is not perfect and is  in need of reform.

CRE is of the opinion that the most significant criticisms associated with the  EB-5 program do not emanate from the subjects addressed  in the  Notice of Proposed Rulemaking, which in large part address  minimum investment levels, but instead with  the management of the program by the  regional centers, the topic of the Advanced Notice of Proposed Rulemaking.

A Mini Treatise on the Strengths and Weaknesses of the EB-5 Program

Editor’s Note: The following article contains a wide ranging  review of the EB-5 program. Students and critics  of the program must note that if there is an imbalance in investment levels between rural and urban areas that in itself is not a fraudulent action. In terms of improving the operation of the regional centers to combat fraud that argues for a combination of the USCIS NPRM with its ANPRM with the end result that USCIS should combine both documents and propose them again as one document instead of separate regulatory actions.

 Special report: EB-5 reforms face major hurdles

The Proposed USCIS Regulations Do Not Address Fraud in EB-5 Program

Any and all federal programs are subject to fraudulent actions by small groups of bad actors.  It is for this reason that each and every major federal program is accompanied by the delegation of enforcement authorities to the relevant regulator.

USCIS has spent considerable time on restructuring the USCIS program through  a series of proposed rulemakings instead of focusing  on enforcement.  Even if the totality of the USCIS  proposed structural changes were to become law they  would have virtually no impact on eliminating fraud  in the  USCIS program. What is the rationale for making structural changes through new regulations a higher priority than enforcing existing regulations?