IIUSA Announces Support of Legal Action to Protect Investors, Integrity of EB-5 Program
(PRWEB) September 04, 2014 -- The Association to Invest In the USA (IIUSA), the trade association representing more than 200 EB-5 Regional Centers, fully supports actions taken by U.S. Securities and Exchange Commission (SEC) and the Justice Department to stop a California Regional Center that is not an IIUSA member from allegedly defrauding EB-5 investors and pursue criminal charges against the persons involved.
"Proper oversight, transparency, compliance with – and enforcement of – all applicable securities, anti-fraud and immigration laws and regulations are essential to maintain the confidence of all industry stakeholders and ensure that the EB-5 program continues to bring capital and job creation to American communities,” said Peter D. Joseph, Executive Director of IIUSA. “Our position is clear: efficient and effective enforcement of U.S. securities laws is as essential for the EB-5 program as it is for any investment vehicle.”
Congress created the EB-5 Regional Center economic development program to successfully spur U.S. job creation and economic growth by attracting foreign direct investment in the United States. A comprehensive, peer-reviewed economic study found that during fiscal year 2012, investments made through the EB-5 program contributed $3.39 billion to U.S. GDP and supported over 42,000 U.S. jobs. This is more than a 100 percent increase from the average annual impact result reported in 2011. IIUSA’s members account for 95 percent of all capital raised through the EB-5 program.
IIUSA has a track record of working cooperatively with the SEC, USCIS and other regulatory agencies to strengthen the program through effective enforcement of anti-fraud, securities and immigration law. For example, IIUSA filed an amicus brief supporting SEC action to stop a Regional Center and developer in Chicago from making misleading claims about investment opportunities.
Other initiatives supported by IIUSA include:
- An “Investor Alert” jointly issued by the SEC and USCIS that provides prospective EB-5 investors with information on conducting due diligence evaluations of EB-5 securities offerings.
- Distribution of guidance published by FINRA for broker-dealers marketing EB-5 related securities.
- Support for several important reforms included in the comprehensive immigration reform legislation that passed last year in the full Senate that would strengthen law enforcement and national security protections.
“Investments made through EB-5 Regional Centers provide a new, vital source of funding for local economic development projects, often in partnership with local governments and economic development agencies. These successful projects are revitalizing communities across the country, creating and supporting jobs, infrastructure and services,” noted Joseph. “Protecting the integrity of the program is critical to continue bringing jobs and economic benefits to cities and towns across the country.”
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Founded in 2005, the IIUSA is the national not-for-profit industry trade association for the EB-5 Regional Center Program, represents more than 200 Regional Center members that account for over 95 percent of the capital flowing through the Program. IIUSA represents the industry in government and public affairs, telling the story of how the EB-5 Program has become an integral part of U.S. economic development policy - with operations covering advocacy, industry development, and education. An integral part of IIUSA’s mission is to stimulate economic development and job growth through continued success of the program as well as advance and maintain industry standards and best practices.
Allen J. Wolff, Association to Invest In the USA (IIUSA), http://www.iiusa.org, +1 (773) 899-0563, [email protected]
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