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.
The aforementioned criticisms of the EB-5 program are associated with fraudulent actions taken by some of the participants in the program. CRE has made this statement in a previous post.
If corrective actions are not implemented it is likely that the regulators will take draconian measures to reduce fraud in the EB-5 program- some on target and some off target. Accordingly CRE will be addressing the immediate actions that can be taken to improve the operation of the regional centers and thus alleviate the need for issuing the NPRM as a final rule.
In performing the aforementioned task, CRE will rely heavily in its recognized knowledge of the federal rulemaking process as well as its experience in reforming other federal programs.
