Broker Dealer Granted Approval to Engage in EB-5 Investment Securities Transactions

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Prevail Capital LLC (Prevail), a FINRA registered broker-dealer, announces that, on August 15, 2014, the company was granted approval to engage in EB-5 Investment Securities Transactions.

Prevail Capital LLC - Approved EB5 Investment Broker Dealer

Prevail Capital, a FINRA registered broker-dealer approved to engage in EB-5 investment securities transactions

With the involvement of an EB-5 broker dealer such as Prevail, the issuer and the investor should no longer be exposed to the risks of engaging unlicensed persons and entities seeking to raise money under the EB-5 program

The EB-5 Immigrant Investor Program administered by the U.S. Citizenship and Immigration Service (USCIS) offers visas allowing residence in the United States to qualified immigrants who make an investment of at least $1,000,000 (or at least $500,000 for investments made in a "Targeted Employment Area") in a new commercial enterprise that each will create not less than ten full-time jobs, or maintain the existing number of employees in a "troubled business."

Investments in EB-5 projects have been a significant source of capital for various real estate and other development projects throughout the United States. Because capital contributed by foreign nationals under the EB-5 Program typically takes the form of an investment in a limited partnership, the SEC has advised that EB-5 investment offerings are subject to U.S. securities laws, even though EB-5 investments may be mostly offered outside the United States to non-US Residents. As such, the EB-5 Industry is under increasing scrutiny.

In September 2013, FINRA released an interpretive letter giving guidance to broker dealers who are involved in securities transactions in connection with the EB-5 Program. FINRA’s guidance has had far-reaching implications for broker-dealers engaged in the marketing of EB-5 offerings. FINRA member broker-dealers who recommend EB-5 investments are now required to perform heightened due diligence with respect to immigration matters, and to both understand and advise prospective foreign investors regarding an EB-5 offering’s compliance.

As a result of FINRA’s guidance, and in order to engage in EB-5 Securities transactions, Prevail applied to FINRA for a modification of their Continuing Membership Agreement (CMA), an application process which lasted approximately 12 months. Importantly, correspondence with FINRA, throughout the application process, has provided Prevail with a comprehensive understanding of its capabilities and insight into where it stands in the regulatory space. As such, Prevail believes that the same rules likely apply industry-wide and that other broker-dealers will need to submit updated CMAs over the coming years, if they intend to be involved in and compliant with EB-5 securities business.

Lisa Hulme, Prevail’s Vice President and co-owner, stated, “Following the FINRA letter of 2013, there has been caution in the EB-5 industry for broker dealers to engage in EB-5 Securities business. What now sets Prevail apart is that with the involvement of an EB-5 broker dealer such as Prevail, the issuer and the investor should no longer be exposed to the risks of engaging unlicensed persons and entities seeking to raise money under the EB-5 program”

About Prevail Capital LLC: Prevail Capital, LLC, member FINRA/SIPC | http://www.prevailcapital.com is a privately held financial services firm providing investment banking, mergers & acquisitions, management consulting, private placements of securities and EB-5 securities transactions to clients throughout the United States, Asia, Europe and the Middle East.

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Lisa Hulme
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