Archive for August, 2011

Representing Investors — Take the Leap

Monday, August 8th, 2011

Many immigration attorneys hesitate to take the leap into representing investor clients in the EB‑5 process.  For those attorneys, partnering with an experienced EB-5 attorney should be considered.  Not only might this provide a learning experience and lead to the possibility of the attorney handling future EB-5 cases, but there is also significant EB-5 spin off work that the immigration attorney can handle.

Following the approval of the EB-5 petition, the investor needs to apply for adjustment of status or consular immigrant visa processing.  The immigration attorney can handle that work even if he does not handle the EB-5 petition.  Likewise with reentry permit applications, which are very common for EB-5 investors who become permanent residents.

Five years after obtaining conditional permanent residence based on an EB-5 petition, the investor and his family may choose to naturalize.  This is further spin off work for the immigration attorney.  After naturalization, the investor may sponsor family members for permanent residence, which creates even further spin off work.

Some immigration attorneys perform non-immigration legal services.  The EB-5 process leaves plenty of room for other services, including tax advice, corporate structuring advice, real estate purchases, employment law issues, etc.

Finally, the immigration attorney may receive a finder’s fee from a regional center even if he does not perform the legal work for the investor.  However, the finder’s fee should not be accepted until the attorney does a careful review of both securities law ramifications and the rules of professional responsibility in his jurisdiction of practice.

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Positive Changes to the EB-5 Program

Thursday, August 4th, 2011

Two important developments that will have a significant impact on the future of EB-5 will be occurring within the next month.

We expect that USCIS will begin phased implementation of the proposal to make the EB-5 process more expeditious and user friendly no later than September.  The phases are expected to include premium processing for regional centers and investors in “shovel ready” projects and changing the adversarial process to a consultative process, with regional center developers being afforded the right to a hearing with expert economists and business analysts to resolve any issues.

The second development is the scheduling on September 8 of an EB-5 hearing by the Chairman of the House of Representatives Judiciary Committee, Congressman Lamar Smith.  Congressman Smith will be a key figure in the attempts to convert the EB-5 regional center program from a pilot program to a permanent program.  Some indications of the Congressman’s position on this issue may be gleaned from the September hearing. 

By mid-September, there may well be progress on both of these important developments in EB-5 practice.

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