Securities Lawyers

Though the EB-5 program is run and regulated by the United States Citizenship and Immigration Services (USCIS) the program has, in recent years, fallen under the vigilance — and discipline — of the Securities and Exchange Commission (SEC). At first, the SEC was just concerned with fraud; in 2013, the agency issued an investor alert because of fraud. Then, in 2015, the SEC began to be involved with bringing action against parties who sold EB-5 investments as unregistered broker-dealers.

Why is the SEC involved in what many see as an immigration program? It has the authority to regulate and enforce its regulations because EB-5 investment offerings qualify as “securities.” A security is any note, stock, bond of “investment contract.” 

Because of EB-5 investments being seen as securities — and because of strict SEC enforcement — regional centers, investors, and attorneys should be aware of and compliant with securities laws. And it is therefore imperative that regional centers and issuers work with securities attorneys who are well versed in both corporate law in general and EB-5 in particular.