In the EB-5 program, foreign agents, finders, and broker-dealers may receive commissions for promoting investments or introducing investors to EB-5 projects. The commission amount can be a significant part of the administration fee and varies based on the investment and the promoter's role.
Commissions have historically been a non-transparent issue, resulting in undisclosed conflicts of interest. However, the EB-5 Reform and Integrity Act of 2022 now requires promoters to register with USCIS, have written agreements with issuers, and provide investors with written disclosure of all fees paid.
Moreover, U.S. securities laws have requirements for receiving commissions, and any U.S. person or entity must be registered with the SEC and FINRA. The SEC is actively enforcing actions against unregistered people. Failure to comply with these laws and regulations may lead to penalties or legal consequences for both promoters and investors.
