Skip to main content

Whistleblower on EB-5: "I could not identify how USCIS was holding each regional center accountable"

The U.S. Senate Committee on Homeland Security & Governmental Affairs held a hearing 6/11/15, Blowing the Whistle on Retaliation: Accounts of Current and Former Federal Agency Whistleblowers, and one topic was EB-5, the sketchy federal program in which immigrant investors trade short-term loans for green cards (as long as the $500,000 purportedly creates ten jobs), channeling their investment through a private entity known as a regional center.

Senior Special Agent Taylor Johnson, Department of Homeland Security, Office of Investigations (DHS/HSI), was among those testifying. Some excerpts from her statement:
In 2013, after disclosing gross mismanagement, waste and fraud that threatened the general public’s safety, National Security Risks and public corruption surrounding an EB-5 project, I was subjected to a significant amount of harassment and retaliation. With the approval of my chain of command, I began investigating an EB-5 Regional Center and a US investor. Some of the violations I was investigating surrounding this EB-5 project include Title 18 statues; Major Fraud, Money Laundering, Bank and Wire fraud. In addition, I had discovered ties to Organized crime and high ranking officials and politicians, who received large campaign contributions that appeared to have facilitating the EB-5 project. I disclosed to my management and later the Office of the Inspector General, specific examples of National Security Risks associated with the EB-5 program and the project under investigation. Some of those security risk coincided with what the CIA, SEC and FBI have also reported.

During the course of my investigation, I discovered that EB-5 applicants from China, Russia, Pakistan and Malaysia had been approved in as little as 16 days and in less than a month in most. The files lacked the basic and necessary law enforcement queries, and that was evident by the Regional Centers SOF’s [source of funds] and applicant’s I-526’s. I found over 800 operational EB-5 Regional centers throughout the U.S. This is a disturbing number, since the U.S. only allows 10,000 applicants per year. I could not identify how USCIS [United States Citizenship and Immigration Services, an arm of DHS] was holding each regional center accountable. I was also unable to verify how an applicant was tracked once he or she entered the country. In addition, a complete and detailed account of the funds that went into the EB-5 project was never completed or produced after several request. During the course of my investigation it became very clear that the EB-5 program has serious security challenges.

This was all reported to my chain of command. From the on-set of the investigation, my first line supervisor began to get complaints from outside agencies and high ranking officials. As a result I was removed from the investigation, a shoddy follow-up review was conducted and then in 2013, ultimately, the investigation was shut down. This was after my chain of command was threatened with a congressional complaint.

Shortly after, I was escorted by three supervisors from my desk and out of my permanent duty station. I was not permitted to access my case file or personal items. I was alienated from my friends and colleagues, who were told by management to steer clear of me since I was facing criminal charges. I was removed from my permanent duty station and initially assigned to an office over 50 miles from my home and family, in direct violation of Title 5.
(Emphases added)

Note: it's unclear which cases Johnson was referring to, but the most high-profile ones, as reported by ABC News and then the DHS Inspector General, involve those tied to politicos Harry Reid, Terry McAuliffe, and Ed Rendell. (And Johnson has been hailed by some in conservative media.)

But Johnson's basic point--"I could not identify how USCIS was holding each regional center accountable"--applies to the broader universe of EB-5 cases/projects, including those involving Atlantic Yards.

There's been no (public) investigation by the Department of Homeland Security/USCIS despite slam-dunk evidence of lies and deception. (The complaint by the State Department was appropriate but peripheral.)

ABC asked the DHS for a response:
A spokeswoman for the Department of Homeland Security responded without directly addressing Johnson’s allegations, saying the agency does not comment on specific personnel matters.
“The Department of Homeland Security takes whistleblower protection very seriously and supports the rights of whistleblowers to engage in protected activity,” said Marsha Catron, a DHS spokeswoman. “Similarly, the Department takes allegations of misconduct very seriously ... When both an allegation of misconduct and a claim of whistleblower protection occur, the Department follows the law to resolve these issues appropriately.

Comments

Popular posts from this blog

Barclays Center/Levy Restaurants hit with suit charging discrimination on disability, race; supervisors said to use vicious slurs, pursue retaliation

The Daily News has an article today, Barclays Center hit with $5M suit claiming discrimination against disabled, while the New York Post headlined its article Barclays Center sued over taunting disabled employees.

While that's part of the lawsuit, more prominent are claims of racial discrimination and retaliation, with black employees claiming repeated abuse by white supervisors, preferential treatment toward Hispanic colleagues, and retaliation in response to complaints.

Two individual supervisors, for example, are charged with  referring to black employees as “black motherfucker,” “dumb black bitch,” “black monkey,” “piece of shit” and “nigger.”

Two have referred to an employee blind in one eye as “cyclops,” and “the one-eyed guy,” and an employee with a nose disorder as “the nose guy.”

There's been no official response yet though arena spokesman Barry Baum told the Daily News they, but take “allegations of this kind very seriously” and have "a zero tolerance policy for…

Behind the "empty railyards": 40 years of ATURA, Baruch's plan, and the city's diffidence

To supporters of Forest City Ratner's Atlantic Yards project, it's a long-awaited plan for long-overlooked land. "The Atlantic Yards area has been available for any developer in America for over 100 years,” declared Borough President Marty Markowitz at a 5/26/05 City Council hearing.

Charles Gargano, chairman of the Empire State Development Corporation, mused on 11/15/05 to WNYC's Brian Lehrer, “Isn’t it interesting that these railyards have sat for decades and decades and decades, and no one has done a thing about them.” Forest City Ratner spokesman Joe DePlasco, in a 12/19/04 New York Times article ("In a War of Words, One Has the Power to Wound") described the railyards as "an empty scar dividing the community."

But why exactly has the Metropolitan Transportation Authority’s Vanderbilt Yard never been developed? Do public officials have some responsibility?

At a hearing yesterday of the Brooklyn Borough Board Atlantic Yards Committee, Kate Suisma…

Barclays Center event June 11 to protest plans to expand Israeli draft; questions about logistics

At right is a photo of a poster spotted in Hasidic Williamsburg right. Clearly there's an event scheduled at the Barclays Center aimed at the Haredi Jewish community (strict Orthodox Jews who reject secular culture), but the lack of English text makes it cryptic.

The website Matzav.com explains, Protest Against Israeli Draft of Bnei Yeshiva Rescheduled for Barclays Center:
A large asifa to protest the drafting of bnei yeshiva in Eretz Yisroel into the Israeli army that had been set to take place this month will instead be held on Sunday, 17 Sivan/June 11, at the Barclays Center in Downtown Brooklyn, NY. So attendees at a big gathering will protest an apparent change of policy that will make it much more difficult for traditional Orthodox Jewish students--both Hasidic (who follow a rebbe) and non-Hasidic (who don't)--to get deferments from the draft. Comments on the Yeshiva World website explain some of the debate.

The logistical questions

What's unclear is how large the ev…

Atlanta's Atlantic Yards moves ahead

First mentioned in April, the Atlantic Yards project in Atlanta is moving ahead--and has the potential to nudge Atlantic Yards in Brooklyn further down in Google searches.

According to a 5/30/17 press release, Hines and Invesco Real Estate Announce T3 West Midtown and Atlantic Yards:
Hines, the international real estate firm, and Invesco Real Estate, a global real estate investment manager, today announced a joint venture on behalf of one of Invesco Real Estate’s institutional clients to develop two progressive office projects in Atlanta totalling 700,000 square feet. T3 West Midtown will be a 200,000-square-foot heavy timber office development and Atlantic Yards will consist of 500,000 square feet of progressive office space in two buildings. Both projects are located on sites within Atlantic Station in the flourishing Midtown submarket.
Hines will work with Hartshorne Plunkard Architecture (HPA) as the design architect for both T3 West Midtown and Atlantic Yards. DLR Group will be t…

Forest City acknowledges unspecified delays in Pacific Park, cites $300 million "impairment" in project value; what about affordable housing pledge?

Updated Monday Nov. 7 am: Note follow-up coverage of stock price drop and investor conference call and pending questions.

Pacific Park Brooklyn is seriously delayed, Forest City Realty Trust said yesterday in a news release, which further acknowledged that the project has caused a $300 million impairment, or write-down of the asset, as the expected revenues no longer exceed the carrying cost.

The Cleveland-based developer, parent of Brooklyn-based Forest City Ratner, which is a 30% investor in Pacific Park along with 70% partner/overseer Greenland USA, blamed the "significant impairment" on an oversupply of market-rate apartments, the uncertain fate of the 421-a tax break, and a continued increase in construction costs.

While the delay essentially confirms the obvious, given that two major buildings have not launched despite plans to do so, it raises significant questions about the future of the project, including:
if market-rate construction is delayed, will the affordable h…

Revising official figures, new report reveals Nets averaged just 11,622 home fans last season, Islanders drew 11,200 (and have option to leave in 2018)

The Brooklyn Nets drew an average of only 11,622 fans per home game in their most recent (and lousy) season, more than 23% below the announced official attendance figure, and little more than 65% of the Barclays Center's capacity.

The New York Islanders also drew some 19.4% below announced attendance, or 11,200 fans per home game.

The surprising numbers were disclosed in a consultant's report attached to the Preliminary Official Statement for the refinancing of some $462 million in tax-exempt bonds for the Barclays Center (plus another $20 million in taxable bonds). The refinancing should lower costs to Mikhail Prokhorov, owner of the arena operating company, by and average of $3.4 million a year through 2044 in paying off arena construction.

According to official figures, the Brooklyn Nets attendance averaged 17,187 in the debut season, 2012-13, 17,251 in 2013-14, 17,037 in 2014-15, and 15,125 in the most recent season, 2015-16. For hoops, the arena holds 17,732.

But official…

"There is no alternative": DM Glen on de Blasio's affordable housing strategy

As I've written, Mayor Bill de Blasio sure knows how to steer and spin coverage of his affordable housing initiatives.

Indeed, his latest announcement, claiming significant progress, came with a pre-press release op-ed in the New York Daily News and then a friendly photo-op press conference with an understandably grateful--and very lucky--winner of an affordable housing lottery.

To me, though, the most significant quote came from Deputy Mayor Alicia Glen, who, as the Wall Street Journal reported:
said public housing had been “starved” of federal support for years now, leaving the city with fewer ways of creating affordable housing. “Are we relying too heavily on the private sector?” she said. “There is no alternative.” Though Glen was using what she surely sees as a common-sense phrase, it recalls the slogan of a politician with whom I doubt de Blasio identifies: former British Prime Minister Margaret Thatcher, a Conservative who believed in free markets.

It suggests the limits to …