As China begins to crack down on EB-5 marketing, the Brooklyn arena roadshow continues; will it violate emerging standards?
Now several authorities in China are cracking down on abuses, as detailed in several examples within the last month from the EB-5 News Blog run by Brian Su, president of the EB-5 China Market Council and an EB-5 consultant in Illinois.
Report from China: Beijing Police Crack Down on Unlicensed EB-5 Immigration Intermediary Operations:
Beijing has 77 legitimate and licensed immigration agencies, however due to US EB-5 program and other foreign immigration business boom in last two years, many unlicensed immigration intermediary firms are operating without required licenses.Report from China: City of Chongqing Cleans up Local Exit-Entry Market:
Municipal Public Security Bureau Assistant Commissioner Yang Jian pointed out that this cleaning up motion's goal is to set the standards for foreign immigration intermediary business.Report from China: Shanghai Exit-Entry Services Association Issues Warning to Members:
On December 27, 2010, Shanghai Exit-Entry Services Association issued a warning notice to all association members that the association will prohibit members to participate in any un-authorized exit-entry industry competition or award events organized by un-authorized entities and organizations. The association has received numerous complaints that a newspaper publisher was hosting a so called "The Most Trustworthy Exit-Entry Service Agency 2011 Award" event.Report from China: Guangzhou Exit-Entry Administration Sets New Rules for EB-5 Brokers:
In a recent conference with Guangzhou area immigration service providers, Guangzhou Exit-Entry Administration also set new requests to the Guangzhou immigration industry. 1) Set new mechanism for monitoring promotional activities and restrict excessive exaggerations; 2) Publicize risks on overseas investment projects; 3) Each exit-entry service agency must file annual compliance review documentation by the end of December every year; and 4) When handling U.S. EB-5 immigrant investors program, exit-entry service agencies must inform consumers and fully disclose risk factors associated with the program.Report from China: Role Change of the Beijing Municipal Public Security Bureau Exit-Entry Administration:
As many EB-5 regional centers enter China market, the Beijing government is definitely nervous and closely watching.And what about the NYCRC?
The basketball push continues. Report from China: New York City Regional Center Continues NETS EB-5 Project Promotion:
A promotional event for New York City Regional Center is to be hosted by a local migration agency in Guangzhou on January 15, 2011. The seminar will be held at 2:00 pm at Westin Hotel, 6 Lin He Zhong Road, Guangzhou. Mr. Gregg Hayden will be attending and entertaining questions. Two NYCRC seminars will take place in Beijing on January 8-9, 2011.Will the local migration agency "restrict excessive exaggerations" and "fully disclose risk factors"?
Hayden has said the "EB-5 funding, the $249 million we are seeking to raise in the China market, is only 17%, the safest, most secure portion of the capital structure, 17%... portion of the capital structure is the EB-5 portion."
How exactly is that explained and disclosed?