The Source for Information on the U.S. EB-5 Visa Program
The Source for Information on EB-5 Visa Investments. “Inform your clients, protect your practice.” 2018
LA SUBURB’S DEVELOPMENT BOOM HAS RESIDENTS FEELING LEFT OUT Page 49
A FIRST LOOK AT THE INTERIORS OF WATERLINE SQUARE
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TWO WORLD TRADE CENTER REMAINS UNBUILT, STALLED BY LACK OF ANCHOR TENANT Page 160
BALTIMORE COUNTY COUNCIL OKS $78M HELP FOR TRADEPOINT ATLANTIC Page 199
contents January 2018
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April 2018
October 2018
May 2018
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03 Posts 16 Project Updates 22 Posts 30 Project Updates 40 Posts 50 Project Updates 60 Posts 70 Project Updates 78 Posts 90 Project Updates
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113 Posts 121 Project Updates 128 Posts 138 Project Updates 146 Posts 154 Project Updates 161 Posts 170 Project Updates 179 Posts 185 Project Updates 191 Posts 196 Project Updates
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The Source for Information on EB-5 Visa Investments
JANUARY 2018 Posts and Project Updates
EB5Projects.COM • 2018 3
Posts
J A N UA R Y 2018
Civitas Capital Group names Eugene “Gene” Fullam Chief Financial Officer CEO Daniel J. Healy today announced Eugene “Gene” Fullam as Chief Financial Officer and a Managing Director for Civitas Capital Group, a specialty asset management firm headquartered in Dallas. “Gene’s 35 years of experience in financial, operational, and strategic leadership in highly competitive financial industries will help Civitas as it expands its institutional investor base,” CEO Healy said. (Read more)
EB5Projects.COM • 2018
Related Story: Civitas Capital Group names Darla Wilton Managing Director and Chief Operating
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J A N UA R Y 2018
Mona Shah & CN Global in Joint Emigration Session in Seoul Korea Jan 2018
Mona Shah & CN Global Partners in Joint Emigration Session in Seoul Korea Jan 2018 (Read more)
Head of Miami’s EB-5 regional center quits Regional center hasn’t generated money or resulted in new visas being issued. The city of Miami’s EB-5 regional center is getting a major overhaul.
Managing Director Mikki Canton resigned on Wednesday due to the changes brought on by Miami’s new city manager, Emilio González. (Read more)
Government Shutdown Ends – Is Immigration Reform on the Horizon?
EB5Projects.COM • 2018
Three days into the government shutdown, Senate Related Stories: Majority Leader McConnell (R-KY) and Senate • President Trump Signs Continuing Resolution Minority Leader Schumer (D-NY) took to the Senate into Law floor Monday afternoon to announce an agreement • Congress Plays Russian Roulette While to end the impasse and reopen the government. Immigration Slows Down • U.S. Senate fails to Pass Continuing Resolution The Senate voted later in the day 81-18 in support and Government Shutdown begins. EB-5 of a short-term continuing resolution (CR) running for Regional Center programs is Suspended through February 8, sending it to the House of Saturday, January 20, 2018 Representatives where it was quickly approved 266150. The CR was then signed by President Trump, • Reminder - Preparing for a Possible Federal allowing Federal workers to return on Tuesday. (Read Shutdown more) • Center for Regulatory Effectiveness Petitions DHS for Rulemaking to Reform EB-5 • Proposed Government Reforms to the EB-5 Program
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J A N UA R Y 2018
Our own Sam Newbold discusses H1-B and EB-5 with Floyd Mitchell of EB5 Investor Portal Related Story:
The EB-5 Visa program is an increasingly popular way for immigrants from India to procure a Visa. On this recent podcast from EB-5 Investor Portal, LLC, Barst Mukamal & Kleiner, LLP’s own Sam Newbold discusses H1-B and EB-5 Visas with a focus on India with Floyd Mitchell of eb5eb5.com. One of the big questions for discussion is a comparison between the H1-B and EB-5 Visa programs? Can you file them concurrently? (Read more)
Related Stories: • India will become the second largest EB-5 visa market in the world: Rogelio Caceres, LCR Partners • US investment visa to stay, but to get costlier • New York City Regional Center Announces Repayment to its First Group of Indian EB-5 Investors • LCR Capital Partners appoints Ashish Saraff as Director, India (EB-5) • Indian EB-5 visa requests may dip as US plans hike in investment limit • U.S. Immigration Fund and The Chopras Group Partner to bring Indian Citizens a Future in the United States • US Immigration Fund aims to raise $125 million by 2018 from India for investments in US • Indian Law update for Residency & Citizenship program
Chinese Couple Accused of Exporting Coal for North Korea Covertly Tried to Immigrate to United States
EB5Projects.COM • 2018
Amound of North Korean coal adjacent to the RasonConTrans coal port at Rajin Harbor, North Korea, on November 21, 2017.
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A couple accused of selling coal for North Korea recently attempted to immigrate to the United States under a special visa program for foreign investors who contribute to the U.S. economy. Back in August 2017, the U.S. attorney’s office filed a complaint to federal court alleging that Chi Yupeng and his wife Zhang Bing had helped North Korea to export and sell coal (Read more) Related Story: Sanctioned Coal Company Tied to Visa-Investment Program
J A N UA R Y 2018
With Cross-Training at the USCIS IPO, A New Level of Detail Is Necessary in Writing Business Plans For EB-5: A Discussion with the LUCIDTEXT Blogger EB-5 Investment Voice is the only Podcast series that In this episode, Mona is joined by Suzanne Lazicki of focuses on and the United States immigrant investor the famous Lucidtext Blog. (Read more) visa, EB-5 and foreign direct investment. Mona Shah, Related Stories: Esq. welcomes guests from the industry, including: • At-risk with call option and preferred return? — Developers, Regional Center Operatives, Attorneys, updateD Legislators and Politicians. • FY2017 EB-5 Visas by Country
CMB Regional Centers Celebrate 20 Years
A regional center can be any private or public economic entity that is involved with the promotion of increased domestic capital, job creation, improved regional productivity, and increased economic growth. (Read more)
EB5Projects.COM • 2018
A Regional Center is an organisation designate to sponsors capital investment projects for investment by EB-5 investors. Regional Centers help EB-5 investors and project developers because they lessen the difficulty of meeting qualifying job creation requirements under the USA EB-5 Visa Program.
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J A N UA R Y 2018
Metropica Selects NES Financial to Provide Platinum Medallion EB-5 Solution Suite Industry-Leading Fund Administration Solutions Will Provide Security, Transparency & Compliance Throughout the Immigrant Investor Process.
Metropica, one of the nation’s largest under-construction mixed-use communities, today announced that it will utilize NES Financial’s range of EB-5 Escrow, Immigration Workflow, and Loan Servicing Solutions — which are designed to help developers raise and deploy EB-5 capital more quickly, minimize risk and streamline project efficiency (Read more)
Important News for Hospitality Executives: How the new Tax Act could affect your estate plan
EB5Projects.COM • 2018
If you are a hotel executive or other highly compensated individual in the hospitality industry,
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CN Global Travels to Chenzhou for Investor Immigration meeting Jan 2018 (Read more)
you need to be aware of how the new Tax Act (H.R. 1 – Tax Cuts and Jobs Act) might affect your estate plan. In some cases, the impact will be significant. In the brief article below, JMBM’s tax attorneys recommend that you review your existing estate plan to ensure that the Tax Act does not alter your plan’s original intentions. They also point to substantial new planning opportunities provided by the Tax Act, and you will want to be advised of those, as well. What better way to start the New Year than by making sure your assets, and your family’s future, are protected? (Read more)
J A N UA R Y 2018
Auditor to investigate role of state officials in EB-5 scandal Vermont State Auditor Doug Hoffer told a Senate panel he wants to tell a story about the EB-5 scandal that played out in the mountains of the Northeast Kingdom from a perspective that he says hasn’t yet been covered.
“What did they know, when did they know it, how did they respond?” he said of state employees, officials and appointees. (Read more)
House Republicans file Continuing Resolution to Extend EB-5 Last night, House Appropriations Chairman, Rodney Frelinghuysen (R-NJ), filed a Continuing Resolution to extend government funding and to provide extension of authorities for programs, such as EB-5, on the House Appropriations website.
The Continuing Resolution, or CR, would extend government operations and the EB-5 program through Feb. 16. (Read more) Related Story: Congress Passes Continuing Resolution Extending EB-5 Program
EB5Projects.COM • 2018 9
J A N UA R Y 2018
First settlement reached landmark EB-5 visa fraud case Five companies involved in Vermont’s Jay Peak ski and water park development reached a $225,000 settlement with the Securities and Exchange Commission (SEC) Wednesday as part of the ongoing EB-5 “golden visa” fraud case against the development’s owner, according to a report by Law 360.
The SEC accuses Jay Peak owner Ariel Quiros of embezzling tens of millions of dollars from foreign investors using the controversial EB-5 visa program, through which foreigners, usually Chinese, can obtain U.S. green cards if they invest $500,000 in certain American-based projects. (Read more)
Related Stories: • State hires firm to redact Jay Peak docs • Filing: Quiros’ unpaid rent may lead to rabbi layoffs • Jay Peak Investor Suit Stayed Pending Related Settlements • State EB-5 document release delayed
Brazilians are getting in on the EB-5 game in a major way
More than 75% of visas still go to mainland Chinese, new data shows. The United States welcomed 282 Brazilian immigrants last year through the EB-5 investor visa program, as the country rose to become the third largest user of EB-5 visas for the first time, a new report from the U.S. Department of State shows. (Read more) Related Story: EB-5 visa approval Brazilian client family
EB5Projects.COM • 2018
Maine moving ahead with regional center to attract foreign investors
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Under the EB-5 program, foreign entrepreneurs can get visas for investing in projects such as a proposed $40 million Chinese medical tourism facility in Auburn that create jobs for U.S. workers.
The state is moving forward with development of a regional center to connect foreign investors to projects in Maine, such as a $40 million Chinese medical tourism facility proposed for Auburn. (Read more)
J A N UA R Y 2018
NES Financial EB-5 Solution Suite Selected By EB5 United For Manhattan Hotel Project
We’ve worked with NES Financial in the past, on a Four Seasons resort and golf course development, and we’ve found both their services and their reputation in the market to be extremely helpful with investors. NES Financial announced today that EB5 United and DLJ Real Estate Capital Partners — the fiduciary to EB-5 investors and the development firm, respectively, behind the hotel project at Nine Orchard Street on Manhattan’s Lower East Side — have selected NES Financial’s suite of EB-5 solutions for the project. (Read more)
Raymond Lahoud Named Top 5 Rising Stars Nationally by EB5 Investors Magazine Raymond G. Lahoud, a Member of law firm Norris McLaughlin & Marcus, P.A., and Chair of its Immigration Law Practice, has been named one of the “Top 5 Rising Stars” nationally by EB5 Investors, the leading online portal, conference series, and
magazine for investors, developers, and EB-5 professionals. Lahoud will be listed among the most influential and leading EB-5 industry professionals in the “Top 25 Attorney” edition of EB5 Investors Magazine. (Read more)
Jared Kushner Is Working On Prison Reform & It’s Just Too Ironic
But the news of Kushner’s latest focus is interesting for another reason: it’s just a little bit ironic, given the Kushner’s family’s own history of legal issues. (Read more) Related Stories: • Jared Kushner’s company under renewed scrutiny over Chinese and Israeli deals • SEC Probes Kushner Cos. Over EB-5 Investment-for-Visa Program • An Immigration ‘Golden Ticket’ Developers Love: Quick Take Q&A
EB5Projects.COM • 2018
While President Donald Trump’s first working days of the new year have focused on subjects like immigration and budget deals, his son-in-law reportedly has a different focus. Jared Kushner is now working on prison reform, Axios reports, and the White House adviser has been exploring the issue for six months. Prison reform is, to be sure, a big issue to work on, and the result of any push from Kushner for progress in this area will be an interesting.
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J A N UA R Y 2018
Jarmulowsky Bank Building developers looking for $79M in EB-5 money DLJ Real Estate Partners plans to transform the Lower East Side property into a hotel. Wanted: $78.5 million in EB-5 funding for a luxury hotel coming to the Lower East Side. DLJ Real Estate Capital Partners has teamed up with Advantage America New York Regional Center to line up the financing for its planned transformation of the Jarmulowsky Bank Building at 9 Orchard Street, according to EB-5 marketing materials found by the Lo-Down. (Read more)
Can settlement reignite stalled work at Hoover complex? Securing funding within coming months would end lawsuit between developers.
Maple Street Commerce acquired the property, which sits along North Main and East Maple streets, NORTH CANTON Areas of the former headquarters of in late 2007. Though much of the complex now holds offices, industrial space and other business, work on the Hoover Co. largely sit empty. the expansive western portion of the 400,000-squarefoot factory has stalled. (Read more)
Investor Claiming Phony EB-5 Project Settles $1.5M Suit
EB5Projects.COM • 2018
A Chinese investor who was allegedly defrauded of $1.5 million as part of an investment scheme exploiting her desire to obtain U.S. residency through U.S. Citizenship and Immigration Services’ EB-5 visa program settled her suit Thursday.
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Sophie Harrison, Shengrun International Industry Group Inc. and Sino-USA Entrepreneur Association Inc. have agreed to pay Shuting Kang $530,000 and an additional 3.7 million RMB ($573,000) to resolve claims that they bilked her out of $1.5 million, according to Brian Y. Lee, who represents Harrison and the two companies. (Read more)
J A N UA R Y 2018
EB-5 Regional Center Termination Overturned: AAO Gets it Right
In a huge win for EB-5 regional centers, the USCIS Administrative Appeals Office (“AAO”) overturned a previous regional center termination order by the Immigrant Investor Program Office (“IPO”) in Matter of P-A-S-, LLC, ID# 513109 (AAO Dec. 21, 2017). This is the first time the AAO has overruled the IPO since creating the new standard for EB-5 regional center terminations articulated in Matter of S-D-R-C-, ID# 13768 (AAO Mar. 15, 2017). In the non-precedent decision, the AAO issued a thorough and balanced analysis of the negative and positive factors for EB-5 regional center authorization. (Read more)
The window of opportunity to invest at the $ 500,000 level is tightening. Congress extended the current law to February 8, 2018 with no changes! Yes! This time it really is! Trust us and act now if you don’t want to get caught up having to invest $ 1,800,000 for the same exact project. Why do we think that this time it might actually happen? For a number of reasons.
According to a statement quoted by Robert Y. Maples of Greenberg Traurig, “on Dec. 14, (2017) the Office of Management and Budget Office of Information and Regulatory Affairs (OMB) published the biennial Unified Agenda. (Read more)
The duration of the recent extensions are very short. That means that Congress believes that a final form of the immigration bill among other issues is finally close to being resolved.
Related Stories: • Countdown to Reauthorization/Immigration Changes • Call for Long Term EB-5 Reauthorization • RC Reauthorization to 2/8/2018
A rich foreigner willing to invest $500,000 in a new business can buy an immigrant visa for self, spouse and minor children that becomes a permanent green card after two years. One would think the law would extend similar consideration to an alien who has actually built a business and paid taxes here. Last week, Oscar and Humberta Campos, of Bridgeton, New Jersey, were deported to Mexico after 30 years of law-abiding but unlawful residence in the United States. (Read more)
EB5Projects.COM • 2018
Taxpaying, Business-building Immigrants Deserve Amnesty
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J A N UA R Y 2018
Thomas Heatherwick unveils High Line towers with bulging window facades Thomas Heatherwick and developer Related Companies have teamed up yet again, this time for a double-pronged condo tower that wraps around a section of Manhattan’s High Line. As first reported by CityRealty, marketing materials for the Heatherwick-designed 515 West 18th Street, and the nearby 555 West 22nd Street, designed by Robert A.M. Stern Architects (RAMSA), are available via an EB-5 investor website. (EB-5 is a federal program designed to spur international investment by promising green cards in exchange for financing, or through the creation of 10 or more permanent jobs.) (Read more)
New York City Regional Center Reaches 4,600th Permanent Green Card Milestone 1,587 I-829 petition approvals in New York City Regional Center offerings have now enabled over 4,600 individuals to achieve permanent residency in the United States.
EB5Projects.COM • 2018
The New York City Regional Center (“NYCRC”) is pleased to announce that over 4,600 individuals (EB-5 investors and family members) participating in its offerings have now achieved permanent residency in the United States. A total of 1,587 I-829 petition approvals in NYCRC offerings to date have enabled 4,635 individuals to secure permanent green cards. (Read more)
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Green and Spiegel Attorney Matthew Galati Named in EB-5 Investors EB-5 Investors Magazine has selected U.S. Senior Associate Matthew Galati as one of the industry’s Top 5 Rising Stars for 2017. The prestigious award recognizes Galati’s ever-growing reputation in the EB-5 realm. Galati is a regular contributor to the magazine which specializes in providing information to investors and industry stakeholders. The magazine publishes quarterly and distributes to attorneys, regional center principals, and migration agents around the world. (Read more)
J A N UA R Y 2018
Sponsored Project Update – January 2018 The Northern Nevada economy continues to see impressive growth. Construction starts are increasing in efforts to meet the new demand for residential and commercial properties; thus, causing more worker shortages. While the Nevada State EB-5 Regional Centers sponsored project has been continuously manned, its completion has been somewhat delayed. Given the time delay, the project has adjusted its timeline for completion to early summer of 2018.
Importantly tenants’ leases have not been impacted and will commence in the spring of 2018. (Read more)
California lawyer admits running $50 million visa-fraud scam A Southern California attorney pleaded guilty Monday to running a scam that authorities say collected more than $50 million from wealthy Chinese investors seeking green cards. Victoria Chan, 35, of the Los Angeles suburb of El Monte faces up to 45 years in prison when she is sentenced July 9 in federal court on visa fraud, wire fraud and money laundering charges. Authorities said Chan and her father operated a company, California Investment Immigration Fund, LLC, that applied for green cards for wealthy investors. (Read more)
Gutsy moves put New York newcomer Faisal Ashraf on track for 2018 growth spurt
Entering 2018, Lotus has a $1.5 billion résumé, a Rolodex of global lenders in 200 capital markets and deals on both sides of the Atlantic. It closed the year as the second biggest arranger of debt in Florida and one of the nation’s top financial service firms by volume. (Read more)
EB5Projects.COM • 2018
At the start of 2017, Lotus Capital Partners was in its infancy. It had no deals to speak of, no clients. Managing partner, Faisal Ashraf, had never worked as a financial advisor and neither had anyone else on his lean, six-person team.
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J A N UA R Y 2018
USCIS Releases New Instructions Regarding Entrepreneur Parole
USCIS has released new instructions reducing the requirements initially listed. The lower requirements are reflected below. On December 14, 2017, U.S. Citizenship and Immigration Services (“USCIS”) announced that it will accept applications for the new Entrepreneur Parole program. Through this program, entrepreneurs and their families can come to the U.S. for up to five years, in two thirty month increments. (Read more)
USA Now director, employee plead guilty in Ponzi scheme case
Mexican investors seeking a path to the United States found themselves the victims of a multi-million-dollar Ponzi scheme tied to an EB-5 regional center. Instead of secured Visas for those investments, federal prosecutors allege that the now-defunct USA Now Regional Center’s owner and director, Marco Antonio Ramirez, 47, and Bebe Ann Ramirez, 43, of McAllen, took millions from foreign investors and redirected it to pay other investors. (Read more)
New York City Regional Center Announces Project Approval for its Fresh Direct Project (Phase II)
Issuance represents 21st I-924 application approval for New York City Regional Center EB-5 project offerings.
EB5Projects.COM • 2018
The New York City Regional Center (“NYCRC”) is pleased to announce that United States Citizenship Immigration Services (“USCIS”) has issued an I-924 application approval for its Fresh Direct Project (Phase II). This is the twenty-first (21st) I-924 approval received for NYCRC project offerings. The NYCRC has a 100% I-924 approval rating. (Read more)
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Citizenship by Investment in ANTIGUA AND BARBUDA
EB-5 Investment Voice is the only Podcast series that focuses on and the United States immigrant investor visa, EB-5 and foreign direct investment. Mona Shah, Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians. Of the Citizenship by Investment (CBI) countries, those located in the Caribbean Islands are popular choices because they offer faster processing times to citizenship. (Read more)
Project Updates
J A N UA R Y 2018
Construction at Dania Pointe is underway!
Jan 31, 2018 - Construction at Dania Pointe, Broward County’s premiere 100-acre “Work, Shop, Live, Play” mixed-use development is now underway. The project’s master developer, Kimco (one the nation’s largest developers/owners/operators of outdoor retail shopping centers) expects the first phase of retail to be open in time for the 2018 holiday shopping season. (Read more)
BK Navy Yard set to launch $2.5B redevelopment plan
Project will add 5.1M sf to the Tech Triangle site.
EB5Projects.COM • 2018
The Brooklyn Navy Yard will undergo a $2.5 billion development plan that will add an additional 5.1 million square feet of space to the Tech Triangle site. But rather than turn to private developers as it’s done in the past, the non-profit that runs the yard will self-fund the expansion with revenue from the site. (Read more)
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J A N UA R Y 2018
A cautionary tale? EB-5 investors sue over Battery Maritime woes Suit claims regional center hid the truth about the stalled project.
It was the middle of 2015 when the long-stalled plan to redevelop the Battery Maritime Building in Lower Manhattan began to unravel. Unable to come up with the money to finish the project, developer Dermot Company halted construction, defaulted on its rent and was slapped with multiple lawsuits. (Read more)
Hudson Companies targets $478M sellout for BK Heights condo project The developer demolished the Brooklyn Heights Library last year.
Hudson Companies plans to bring 134 condominium units to market at its 1 Clinton Street development with a total target offering price of $477.7 million, an offering plan filed with the New York state Attorney General’s office shows. (Read more)
Fortunate Dragon close to Las Vegas Strip faces foreclosures A security guard patrols around Lucky Dragon, which shut down gaming and casino restaurant operations in early Jan., in Las Vegas on Monday, Jan. 15, 2018. (Read more)
EB5Projects.COM • 2018
Related Stories: • Lucky Dragon Heads to the Auction Block • Year-old Vegas hotel with closed casino facing foreclosure
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• Vegas‘ Fortunate Dragon quickly closes on line casino, eating places • Lucky Dragon Hotel and Casino in Las Vegas temporarily shuts down gaming and restaurants • What Lucky Dragon’s Struggles Foretell For the Las Vegas Strip
Related projecting $1.5B sellout at 35 Hudson Yards
Developer and partner Oxford Properties will sell pads at an average of $11M a pop. Related Companies and Oxford Properties Group are targeting a $1.53 billion sellout at the under-construction supertall tower known as 35 Hudson Yards, which makes it the second-most expensive condominium project approved to launch sales since 2016. (Read more)
J A N UA R Y 2018
Unfinished hotel on Fort Lauderdale beach with Chinese funding faces $37M foreclosure
The unfinished Las Olas Ocean Resort, a hotel project on Fort Lauderdale beach that attracted funds from hopeful Chinese immigrants through the EB-5 visa program, has been targeted for foreclosure. The Bancorp Bank (NYSE: TBBK) filed a foreclosure lawsuit on Jan. 25 in U.S. District Court in Fort Lauderdale against 550 Seabreeze Development LLC and JAWOF 515 Seabreeze LLC over a mortgage with $36.94 million in principal due. (Read more) Related Story: Bancorp sues former Turnberry execs over stalled resort in Fort Lauderdale
Ground-breaking set for The Arts Residences, Thompson San Antonio Hotel A $116 million hotel-condominium project is underway for San Antonio’s art district. The project is expected to be completed by 2019.
San Antonio will soon add more downtown, luxury homes when The Arts Residences and The Thompson Hotel are completed. The next step toward that, the ground-breaking on the mixed-used development, is set for Jan. 30, with an aim toward a 2019 completion date, according to a news release. (Read more)
Related Stories: • January 30 set for ground-breaking of Texas’ fastest selling high-rise mixed devt • Nigerians, others target $116m Texas real estate devt
76 11th Avenue, also known as The Eleventh, has finally started to show itself. Construction began in the fall of 2016, and YIMBY has been following its progress closely. Running the length of 11th Avenue between 17th and 18th Street, the site is one of the largest parcels of land to be developed since the recent surge of construction started along the High Line, and the latest photos from BIG and Tectonic show that the transformative project is finally beginning its climb into the West Chelsea skyline. (Read more)
EB5Projects.COM • 2018
Bjarke Ingels-Designed 76 Eleventh Avenue, Aka the Eleventh, Begins To Rise In West Chelsea
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J A N UA R Y 2018
Balsams developers target April construction start
Shown in early 2014, with the Granite Reliable Wind Farm above it, The Wilderness Ski Area at The Balsams is poised for a major expansion. As the New Hampshire Business Finance Authority considers its lead lender’s application for a $28 million loan guarantee, Dixville Capital LLC is poised to begin renovation and construction at The Balsams resort in April, weather-permitting. In December, Service Credit Union asked the BFA to guarantee that amount for Phase 1 of the Balsams project on behalf of Dixville Capital. (Read more)
Jared Kushner Company Chinese Money for Luxury Tower and Conflicts-Of-Interest Criticism
EB5Projects.COM • 2018
Jared Kushner’s family-run real estate company has and office complex in Jersey City. (Read more) stopped seeking money from Chinese investors to Related Stories: build a subsidized luxury tower in New Jersey, across • Kushners drop much-criticised effort to raise from lower Manhattan, after being criticized for US$150m from Chinese millionaire migrants playing up its ties to the White House as part of its • Kushner Companies no longer seeking $150M in pitch. EB-5 for Jersey City project • Fortress Makes Loan to Kushner Cos.’ Jersey City Kushner Companies had been trying to raise $150 Project million from wealthy Chinese investors for One • ‘Mr. Perfect’ Jared Kushner’s Not-So-Perfect Year Journal Square, its planned 66-story residential, retail
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J A N UA R Y 2018
SEC Settles With Jay Peak Water Park Contractors for $225K Five companies involved in the U.S. Securities and Exchange Commission’s $350 million EB-5 visa fraud suit against Jay Peak ski resort owner Ariel Quiros have agreed to pay $225,000 to settle claims related to the resort’s indoor water park.
Black River Design Architects PLC, DEW Construction Corp., VHV Co., FabricAir Inc. and Ramaker and Associates Inc. will each pay $45,000 to the Vermont resort’s court-appointed receiver, Michael I. Goldberg of Akerman LLP. (Read more)
Texas fastest selling high rise break ground January 30 invites EB-5 investors Over the past 5 years, 3INVEST has partnered with Houston EB5; an Investment Program administered by the U.S. government. Offering foreign investors, the opportunity to become a US citizen by investing in the Program. The offer includes, Complete capitalization of the investment project of choice, fast-track permanent and legal residency in the U.S for investors and their immediate family and; share in the profit of the project. (Read more)
Lofts on Cedar Springs Townhome Project Headed to Oak Lawn At a recent meeting of the Dallas City Plan Commission, Houston-based developer Urban Lofts Townhomes got a hearing to obtain a multifamily subdistrict zoning in Oak Lawn, as part of the firm’s proposed new Townhome development at 4523 Cedar Springs Road, The Lofts on Cedar Springs.
The commissioners went easy on Urban Lofts’ representative, Karl Crawley of the land planning firm Masterplan. (Read more)
The Las Vegas hasn’t turned a profit since opening in 2014 and is on the ‘’verge of bankruptcy,’’ according to a lawsuit filed in Los Angeles County by 60 Chinese nationals who lent money to the project in exchange for U.S. citizenship. Chinese investors lent roughly $400 million in two nearly equal portions in 2013 and 2014 to help owners Stockbridge Capital Group and sbe Entertainment convert the Sahara on the north Strip into the SLS Las Vegas. (Read more)
EB5Projects.COM • 2018
SLS Las Vegas on ‘verge of chapter,’ traders allege
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J A N UA R Y 2018
Delayed $3B Brightline project to launch service this weekend Delayed $3B Brightline project to launch service this weekend Downtown Miami station won’t open for a few months. All Aboard Florida’s high-speed rail is set to finally launch to the public this weekend. Brightline, the service that will eventually link Miami to Orlando, has been long awaited by the local development and tourism industries. (Read more)
Capt. Chen seeks relief while appealing loss in court to EB-5 investor Capt. Huy Ying Chen continues to appeal a Seattle judge’s ruling that he violated the state Securities Act in a case involving the federal government’s EB-5 immigrant investor program. Chen’s case was one of two EB-5 cases that drew scrutiny in Seattle last year. The other involved Lobsang Dargey, who was sentenced to four years in prison. More than a year after a King County judge ruled that Huy Ying Chen violated the Washington state Securities Act, he continues fighting an order to pay an investor more than $225,600 in interest and legal costs. (Read more)
Barnett closes on $1B+ financing for Central Park Tower EB5Projects.COM • 2018
Gary Barnett celebrated the New Year the only way he knows how.
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The Extell Development boss closed on $1.14 billion in financing for Central Park Tower, and now has all the money in place for what is set to be Manhattan’s most expensive condo tower, according to documents the developer filed with the Tel Aviv Stock Exchange Sunday. (Read more)
FEBRUARY 2018 Posts and Project Updates
EB5Projects.COM • 2018 23
Posts
F E B R UA R Y 2018
Pork & Mindy’s Partners with American AllStar Bo Jackson Pork & Mindy’s announced a partnership with Bo Jackson Signature Foods. Jackson, who is known to be one of the world’s greatest athletes, is also an avid cook and food connoisseur, and is now an equity partner of the company.
Pork & Mindy’s and Bo Jackson Signature Foods share a passion for providing customers with fresh tasting, premium products making the partnership a natural fit. (Read more)
EB5Projects.COM • 2018
State Dept. strands Iranian Christians in Vienna
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More than 100 Iranian Christians who were prescreened by the U.S. State Department before traveling from Iran to Vienna, Austria, may now be forced to return to Iran. They sold their property, cars and other belongings before leaving Iran, because they had received assurance, they qualified for green cards under the Lautenberg Amendment. (Read more)
F E B R UA R Y 2018
Miami investors score EB-5 funding for charter school in south Miami-Dade Investors Mario and Ramon Castellanos just scored $5.5 million in EB-5 funding to build a charter school in south Miami-Dade, property records show. (Read more)
EB-5 Investor Immigration Program Faces New Challenges from Kushner’s Involvement
Jared Kushner, White House Senior Adviser and son-in-law of U.S. President Donald Trump, listens during a meeting between President Donald Trump and congressional members in the Cabinet Room of the White House February 13 in Washington, DC. Recent news reports indicate that companies owned by President Donald Trump’s son-in-law Jared Kushner are under investigation. (Read more) Related Stories: • Jared Kushner’s property empire had to thrive under Trump, right? Wrong • After the inauguration, New York, LA and South Florida real estate rewarded Trump with even more money
FIRE gets $34 million in New Markets Tax Credits Mandel Group’s Six Points project in West Allis received $4.5 million in FIRE tax credits. (Read more)
EB5Projects.COM • 2018
On Tuesday, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund announced $3.5 billion in New Markets Tax Credits to 73 community development entities nationwide.
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F E B R UA R Y 2018
For Asian ‘investors’, EB-5 visa opens doors to El Dorado
With fluctuating H-1B visa concerns, more Asian ‘investors’ are taking the EB-5 visa route to the US. The Chinese are way ahead of others, but Vietnamese and Indians are also increasingly flocking to America which, they think, is their El Dorado. Under the EB-5 visa rule, the US virtually takes a ‘loan’ from these investors who can have it ‘reimbursed’ after getting a Green Card! (Read more)
Chicago’s Star-Powered Sandwich Joint Preps for Growth Food Network Star Jeff Mauro and Kevin Corsello didn’t cut any corners in developing Pork & Mindy’s, a Chicago fast casual ready to grow. Is the season 7 winner of Food Network Star, Jeff Mauro could have slapped his name on the façade of a restaurant, collected a licensing fee, and left town. It would have been a heck of a lot easier. “That’s not how big brands are built, through ease,” Mauro says. “And nothing is easy about this process.” (Read more)
EB5Projects.COM • 2018
Stopgap Spending Bill Ends Second Federal Government Shutdown in Less than a Month
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A brief federal government shutdown ended this morning as the House and the Senate passed a Continuing Resolution (the “CR”) which provides a bipartisan budget bill that raises spending caps for two years and funds the federal government through March 23, 2018. The President signed the bill this morning. This new short-term extension has the effect of extending the EB-5 Regional Center Program in its existing form, meaning individual investors may continue to file I-526 petitions until this date. (Read more)
F E B R UA R Y 2018
Increase in EB-5 Investments and Fraud Presents Opportunities for SEC Whistleblowers
EB-5 investments have skyrocketed the past few years presenting more opportunities for fraudsters to exploit the program. The SEC warned investors about a rise in EB-5 investment scams in an investor alert in 2013. Since the alert, however, the scams have only increased as detailed in recent testimony on the EB-5 Program. In fact, since 2013, the SEC has brought 15 enforcement actions against EB-5 projects that raised more than $1.2 billion from EB-5 investors and then proceeded to misuse or steal more than $361 million of the investments. (Read more)
Next Steps for EB-5 Investors in 550 Seabreeze | Los Olas Resort Project
Unfortunately, for the 60 or so foreign investors that invested in the Las Olas Resort Project (550 Seabreeze), last month turned out to be a week of troubling news. Specifically, on January 25, 2018. (Read more)
EB5Projects.COM • 2018
An EB-5 immigrant investor visa is normally appealing to wealthy foreign individuals seeking a permanent residency in the United States. However, investing in the wrong EB-5 can have catastrophic consequences for investors. This includes the risk of losing the entire investment (which is usually $500,000) as well as losing permanent resident status in the United States.
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F E B R UA R Y 2018
Updates (CR to 3/23, AAO sustained appeals, RC List)
as they relate (or mostly do not relate) to EB-5. (Read more)
Related Stories: • What’s next for the EB-5 Program? • The EB-5 Visa Program Creates American Jobs and It Deserves Reauthorization • The EB-5 Visa—Understanding the Foreign Currency Control Challenges • Why Congress must reform immigration • EB-5 Gets 2 More Years, and Defrauded Millions Are Recovered in Vt. • RAISE immigration reform proposal raises serious concerns I’ve started a Washington Updates page off the • Immigration Debate Begins: Prospects for EB-5 Resources tab to keep track of what’s going on Reform & Reauthorization with legislation and regulations and will revise it • More Indians prefer US EB-5 visa route with regularly as I hear about changes, in lieu of endless assured migration, Green Card update posts. The page has details of regional center • House of Representatives Passes Continuing authorization (currently extended through March Resolution Funding Government Operations and 23, 2018) and the immigration debate and new bills Programs
Veronique de Rugy: U.S. Should Welcome More Investor Immigrants
EB5Projects.COM • 2018
There’s a deep political divide over how to handle immigration, and clashes over the issue have contributed to two government shutdowns — albeit one lasting mere hours — thus far this year.
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Battles relating to illegal immigration, including the question of border security and the status of so-called “dreamers” — those brought into the United States illegally as children — are receiving the most attention. (Read more) Related Story: The US should welcome more investor immigrants
F E B R UA R Y 2018
Moinian Group tries to raise $350M in EB-5 funding for 3 Hudson Boulevard Moinian Group hopes to raise between $250 million and $350 million in EB-5 funding for 3 Hudson Boulevard.
George Washington Immigration Group, an EB-5 regional center, was tapped to arrange the financing, Commercial Observer reported. The regional center structures investments as limited partnerships, the CO reported. (Read more)
Making the Right Choice between Regional Center and Direct Investment with David Hirson
EB-5 Investment Voice is the only Podcast series that Of the 15,000 immigration lawyers in the United focuses on and the United States immigrant investor States, only about 300 specialize in the EB-5 program. visa, EB-5 and foreign direct investment. Mona Shah, (Read more) Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians.
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F E B R UA R Y 2018
Kushner Companies wants to buy remaining stake in 666 Fifth Avenue
Vornado Realty Trust wants to offload its 49.5 percent stake in the skyscraper. There may be an end in sight for the saga of 666 Fifth Avenue, which went from being the most expensive office building ever purchased to an extraordinarily expensive boondoggle in just about a decade. Vornado Realty Trust, which owns a 49.5 percent stake in the building, has made it clear that it wants to sell its share, and according to the Wall Street Journal, there’s at least one interested party: Kushner Companies. (Read more) Related Story: Mueller Probing Kushner’s Attempts to Finance 666 Building
TEA Sneak Peek Map for 2018 Released “Will my project still qualify as a TEA after new data is finalized this spring?” Get ready for the annual data update with the TEA Sneak Peek Map. Last year we introduced our “Sneak Peek” map, allowing you to see the best approximation of the annual revisions to census tract unemployment data - and we’ve updated it for this year (full release post). For now, the TEA rules are still the same as they were last year. (Read more)
State is redacting EB-5 records released to the court EB5Projects.COM • 2018
The state of Vermont is asking a judge to approve the public release of 5,000 redacted documents it filed under seal Friday in its EB-5 investor fraud lawsuit against Jay Peak Resort developers.
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The request is the first of several expected following the state’s hiring of a private company last month to redact “Personally Identifiable Information” from as many as 1.5 million documents. (Read more) Related Stories: • Quiros agrees to pay back $81 million, surrender properties • Receiver Seeks To Reinvest Cash from Jay Peak EB-5 Project
F E B R UA R Y 2018
Tenney Mountain ownership group fights effort to increase attachment against its property to $1.1 million Michael Bouchard heads the investment group that purchased Tenney Mountain after a decade of neglect.
The investment group that owns Tenney Mountain ski area in Plymouth that reopened unannounced last week remains embroiled in a legal battle and is contesting efforts to increase the existing attachment against the property from $375,000 to $1.1 million. In March 2016, Keith Fitzgerald of Center Harbor filed a lawsuit in Belknap County Superior Court against Tenney Mountain Development Group LLC. (Read more)
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Project Updates
F E B R UA R Y 2018
After extensive delays, Skyland Town Center project now underway The troubled Skyland Town Center project in Southeast D.C. is finally underway. Really.
that construction has begun on the $115 million first phase after the partners lined up an undisclosed Developers WC Smith and The Rappaport Cos., along amount of commercial financing, nearly $60 million with D.C. Mayor Muriel Bowser, announced Tuesday through the EB-5 program. (Read more)
EB5Projects.COM • 2018
Greentech which raised 37 million under former CEO Terry Mcauliffe files for bankruptcy
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GreenTech Automotive, the electric car company which former Democratic National Committee Chairman and long-time Clinton ally Virginia Gov. Terry McAuliffe served as CEO from 2010 to 2012, has filed for Chapter 11 bankruptcy. The company “received at least $37.5 million in cash investments before McAuliffe resigned as chairman in December 2012,” Breitbart News reported in 2013. Funded by an additional $100 million from Chinese investors through the controversial EB-5 visa program. (Read more) Related Story: GreenTech, the electric car company once led by McAuliffe, files for bankruptcy
F E B R UA R Y 2018
Mount Snow looks to EB-5 program for $94M expansion
Mount Snow executives want to raise $94 million for their next expansion project, and they expect more than half of that — at least $55.5 million — to come from the EB-5 foreign investment program. The figures come from a new U.S. Securities and Exchange Commission filing by Peak Resorts, Mount Snow’s Missouri-based parent company. Peak wants to build 102 luxury housing units at the Dover resort. (Read more) Related Story: Mount Snow taking next step in plan
Construction activity spotted at One River Point
Uruguayan architect Rafael Viñoly’s luxury project One River Point is on its way to becoming a reality, according to The Next Miami, which scoped out construction activity at the project’s site along the Miami River. The 60-story project, which includes two towers connected by a “floating sky bridge,” is now expected to go vertical in 2019. (Read more)
EB-5 investment immigrants at risk, a project in South Florida is facing a foreclosure Las Olas Ocean Resort, which is being built by the sea in Fort Lauderdale, South Florida, faces a foreclosure sale with 60 Chinese EB-5 investment immigrants.
EB5Projects.COM • 2018
Bancorp Bank, which provided a loan of $ 50 million to the construction project in 2013, filed a lawsuit with the United States District Court on January 25, 2018, demanding the recovery of the foreclosure for the project as the project currently owes the bank nearly 3 Thousands of millions of dollars in loans, while December 2017 owners (550 Seabreeze Development LLC and JAWOF 515 Seabreeze LLC) did not pay for the month. (Read more)
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F E B R UA R Y 2018
NMS Capital Advisors Expands New York Investment Banking Team Appointing Paul Heuwetter as Managing Director
NMS Capital Advisors, LLC (“NMS”), a leading global-focused investment banking and asset management firm, today announced that it has appointed Paul Heuwetter as managing director of its investment banking division and to lead its newly formed NMS Infrastructure Group. In this newly created role, Mr. Heuwetter is bringing a variety of non-traditional financing solutions to both public and commercial clients in both public and P3 infrastructure. He will be based in the firm’s New York office. (Read more)
CanAm Received More than 460 Approvals in 90 Days
EB5Projects.COM • 2018
To date, more than 3,900 investor-families have received I-526 approvals through investing in one of CanAm’s 55 EB-5 projects.
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CanAm is pleased to announce that, in the past three months, more than 460 investor-families have received I-526 petition approvals from various CanAm projects!
Among the projects with approvals include: “All Aboard Florida” in CanAm’s Florida Regional Center, Tishman Speyer’s “Jacx” (formerly known as Gotham Towers) and “The Wheeler Building” (also known as Macy’s Office Building) in CanAm’s New York Metropolitan Regional Center, and the “LA BioMed” project in CanAm’s Los Angeles Regional Center - all of which have I-924 exemplar approvals. (Read more)
F E B R UA R Y 2018
Massive 65-Acre Metropica Is Just One Symbol of Booming West Broward South There are about 7 million people in South Florida — but only about 90,000 of them live on Miami Beach. While you might not hear Pitbull rapping about how sexy West Broward County is, plenty of warm bodies live, work and shop in the suburbs of Fort Lauderdale, and developers and investors are noticing. Courtesy of Metropica When complete, Metropica will have eight residential towers. (Read more)
Vermont has plan to release documents in ski resort fraud
On Friday, the Department of Financial Regulation and the Attorney General’s office filed a court motion to expedite disclosure of documents relating to the investment program used to fund projects at Jay Peak and other projects in North Eastern Vermont. Financial Regulation is working with a vendor to remove personally identifiable information from documents. The first 5,000 documents are ready to be released. (Read more)
Related Stories: The state of Vermont has a plan to release documents • After Vermont fraud, EB-5 investors can bring their money to Harry Macklowe related to the ongoing investigation of investment • EB-5 investors might get ‘green card’ after all fraud at the Jay Peak ski area. • Alleged Perpetrator of Ski Slope Investment Scheme Agrees to Pay Back Investor Money, Surrender Properties
Caroline Moore, the Boise owner of CMoore Holdings and Bright Star Care Boise, wants to turn this brick ranch house into an assisted-living home for eight frail seniors. Neighbours in the Five Mile Estates subdivision fear traffic congestion and general disruption.
What began as a neighbourhood controversy has ballooned into a federal lawsuit pitting residents of a quiet, leafy subdivision against a small business serving the Treasure Valley’s growing elderly population. (Read more)
EB5Projects.COM • 2018
Proposed assisted-living home worries neighbours, some of whom are elderly themselves
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F E B R UA R Y 2018
Kaskaskia developers spread their wings
A large rendering of the Kaskaskia Hotel is displayed in the window of the Maytag building at First and Joliet streets, La Salle, about 600 feet southeast of the hotel at Marquette and Second streets. The developers of the hotel renovation also plan to renovate the Maytag building Developers eye old post office, Maytag building for renovations in La Salle (Read more)
Project to connect I-95, PA Turnpike nears major milestone
Fifty years in the making, officials anticipate the connection between I-95 and the Pennsylvania Turnpike will be open by late summer/early fall 2018. Motorists on Interstate 95 and the Pennsylvania Turnpike soon will be able to get from here to there on just one road. It’s only taken about 50 years. Since I-95’s completion in 1969, plans called for creating a seamless link between the interstate and the turnpike. (Read more)
EB-5 green card plan: From Lake Road to Wall Street
EB5Projects.COM • 2018
EB-5 investors who lost out on obtaining green cards when a proposed $110 million biomedical research facility in Newport was deemed by regulators “nearly a complete fraud” now have the opportunity to reinvest in a luxury New York City high-rise on Wall Street. (Read more)
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F E B R UA R Y 2018
Construction begins on tallest building in Dallas suburb
Dive Brief: • Atlanta-based developer Novare Group and Batson Cook Development have started construction of a 25-story luxury tower along the “$5 Billion Mile” in Frisco, Texas, according to The Dallas Morning News. When complete, the apartment high-rise will be the city’s tallest building. • Branded SkyHouse Frisco Station, the building will include 332 rental units, which will be a mix of studio, one-, two- and three-bedroom apartments. Upper-floor units will have more square footage to accommodate senior executives and their families who are relocating to Frisco. (Read more)
Balsams developers wait for loan guarantee, seek to discontinue roads While the developers of the Balsams Resort await a March decision from the N.H. Business Finance Authority on its financing package, Dixville Capital LLC. is seeking to discontinue three state-owned roads on the property.
The BFA is being asked to recommend a $28 million state loan guarantee to Service Credit Union, the
chief lender on the project. BFA Executive Director James Key-Wallace did not return repeated phone calls and was reportedly busy with legislative meetings over the past week. (Read more) Related Story: Balsams developers disappointed with Northern Pass decision
Lucky Dragon hotel open for business until March 27; judge decides U.S. Bankruptcy Court, District of Nevada Judge Laurel Davis decided after a bankruptcy hearing for the Lucky Dragon Hotel and Casino that the hotel would remain open until March 27, when the next hearing will take place. (Read more) Related Stories: • Lucky Dragon now in Chapter 11 bankruptcy • Lucky Dragon Casino Foreclosure Auction Postponed, Possible Backstage Deals Push Date Back
EB5Projects.COM • 2018
A Nevada bankruptcy judge ruled Wednesday that the hotel of the Asian-themed Lucky Dragon resort off the north end of the Las Vegas Strip will remain open for another month.
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F E B R UA R Y 2018
Coco Palms Developer Fights Back With Its Own Native Hawaiian Research A Hawaiian consultant disputes the claims of the occupiers of a planned resort site on Kauai.
Dismayed by what he calls a glut of erroneous legal accusations behind the ongoing occupation of Kauai’s famed Coco Palms resort, a Native Hawaiian researcher has won a contract to fact-check claims made by activists battling for property rights with a hotel developer. (Read more) Related Story: Activists delay rebuild of Hawaii hotel with Elvis ties
Economic development boom continues for Tacoma in 2018 The $150 million Convention Center Hotel project, supported by Chinese investor Chun Yang, is under construction and Phase I will open in 2020. Photo courtesy of City of Tacoma
Tacoma is crane city. Cranes are up for Point Ruston, The Napoleon, a 135-unit apartment building at Tacoma Avenue South, and the Convention Center Hotel project. In second quarter 2018, the crane will go up for the Town Center project. And what’s certain is that more will follow. (Read more)
EB5Projects.COM • 2018
Jay Peak, Burke to go on the market in May
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The ribbon was cut Wednesday afternoon on the last major development at Jay Peak, coming just a few months before the resort is expected to hit the market in search of a buyer. The 800-plus EB-5 investors who were defrauded in a massive Northeast Kingdom redevelopment scheme will likely get most of their money back with the sale of Jay Peak as well as the nearby Burke Mountain ski area and other properties. (Read more)
F E B R UA R Y 2018
Culinary asks for investigation of prospective owner of SLS Las Vegas
The Culinary Union has called on Nevada gaming regulators to investigate the legality of Alex Meruelo’s purchase of the SLS Las Vegas amid tough labor negotiations with the Reno-based businessman. In a letter to the regulators, the union said the Chinese EB-5 investors that loaned $400 million to the SLS did not approve the sale to Meruelo. (Read more)
Moinian Selects Regional Center for 3 Hudson Boulevard EB-5 Funding The Moinian Group has selected George Washington Immigration Group, LLC, as its EB-5 regional center to provide between $250 million and $350 million in EB-5 funding for 3 Hudson Boulevard.
Congress created the EB-5 Immigrant Investor Visa Program with the Immigration Act of 1990. Investors can become lawful permanent residents by investing at least $1,000,000 or $500,000 in targeted employment areas, to finance a business in the US that will employ a minimum of 10 American workers. (Read more)
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F E B R UA R Y 2018
Developer plans $2.5B conversion of Brooklyn Navy Yard into tech center
Dive Brief: • The non-profit development company tasked with managing the New York City-owned Brooklyn Navy Yard is planning a $2.5 billion, 5.1-million-square-foot expansion that it says will transform the historic shipyard into a creative manufacturing and high-tech hub, according to Bloomberg. • The Brooklyn Navy Yard Development Corp. said that the new space will be spread across three sites on 24.5 acres of the total 300-acre complex. (Read more)
At last, Everett’s year-round farmers market opens Farms & Market, the city’s first year-round farmers market and kitchen, will have its grand opening March 1, but opened to the public Feb. 5.
“We’re really excited that we’re finally at this point and that we’re gearing up to open our doors,” said General Manager Alicia Moreno.
EB5Projects.COM • 2018
The restaurant and marketplace are located on the first floor of the apartment complex at 2900 Grand Ave. They share the space with the French-American Choux Choux Bakery. (Read more)
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F E B R UA R Y 2018
Development begins on the Thompson San Antonio
Thompson Hotels began development on its newest project, Thompson San Antonio and The Arts Residences. An official ground-breaking ceremony was held Jan. 31, and the property is slated to open in 2019. Once open, the hotel will consist of a high-rise tower with 162 guestrooms and 58 residences, and it will be located steps from the city’s River Walk. (Read more)
Crews Work on Foundation at Brooklyn Heights Public Library and Condo Development
Hotly debated, a controversial development project is under construction.
The project broke ground in July of 2017, Hudson developer David Kramer told Brownstoner. (Read more)
EB5Projects.COM • 2018
The 36-story luxury condo on the former site of Brooklyn Public Library’s Brooklyn Heights branch at 280 Cadman Plaza West is progressing, with crews digging the foundation and constructing foundation walls when Brownstoner visited Monday.
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EB5Projects.COM • 2018
MARCH 2018 Posts and Project Updates
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Posts
M A R C H 2018
U.S. Immigration Fund Announces I-526 Petition Approvals for the West Hollywood Edition EB-5 Project in Los Angeles, California I-526 petition approvals have now been issued for another successful U.S. Immigration Fund project offering, The West Hollywood Marriott Edition Hotel and Residences, resulting in a combined total of more than 3,200 U.S. Immigration Fund investors with I-829 and/or I-526 approvals.
Jupiter, FL – March 26th, 2018 – U.S. Immigration Fund (“USIF”) is proud to announce the first I-526 petition approvals issued to EB-5 investors who invested in The West Hollywood Marriott Edition Hotel and Residences in Los Angeles, California. (Read more)
Developer puts Oyster Point housing plan on hold that biotech opposes
Facing opposition from South San Francisco’s powerful biotech industry, a developer has at least temporarily withdrawn a proposal. (Read more)
EB5Projects.COM • 2018
An illustration of Oyster Point Marina where a proposed development of 1100 residential units is being encouraged by the city of South San Francisco, Calif., Wednesday, November 22, 2017. The area east of Hwy 101 has long been the heart of South San Francisco’s business base - the engine behind the town’s historic claim to be “The Industrial City.”
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M A R C H 2018
Independent Films - ‘Tickets to America’ For Foreign Investors For a foreign investor who wants to come to the U.S., a purchase of a U.S. film maker’s screen play may end up being a “ticket to America.” A strategy involving the sale of a film script as the initial basis for an investor visa application makes sense because it not only helps the foreign investor and his or her family to qualify to come to America, but also helps the American independent film maker get his or her film made. The new approach combines current cutting edge tax planning with an advanced strategy to facilitate E-2 and L-1 foreign investor visas to quickly come to the U.S. (Read more)
Map of Targeted Areas under March 2018 Proposed EB-5 Reform Legislation
A draft of proposed reform and reauthorization of the EB-5 Immigrant Investment program began to circulate Friday, March 9th. Among many revisions to the existing program, the draft included new definitions of areas that to be targeted for investment. These new definitions use several aspects of the trends that we’ve discussed before – and also introduce some new concepts. (Read more) Related Stories: • Chilling Effect of Proposed EB-5 Investment Amounts on EB-5 Regional Centers in Rural States • EB-5 Change Imminent?
EB5Projects.COM • 2018
Obama Bent Over Backwards To Help Kids Who Came Here Illegally But SABOTAGED Immigration That Creates Jobs
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We have been hearing laments about the need to “fix our broken immigration system” for years now, like a broken record. Nevertheless, Congress to this day remains stuck in an impasse.
Republicans as well as Democrats agree that the “dreamers” who were brought to America as children by their illegal immigrant parents, and grew up in America identifying as Americans, have a sympathetic case for more relaxed immigration rules. Many, perhaps most, of these dreamers have grown up and settled in with their own American families now and know no other country as home. (Read more)
M A R C H 2018
CMB Regional Centers Announces the Return of Capital to Limited Partners in CMB Groups VI-A, VI-B, and VI-C
For more than 20 years, CMBs EB-5 partnerships have been bringing needed funds into economically distressed areas of the United States through the EB-5 program. CMB Regional Centers is pleased to announce that it has reached a significant achievement with the return of capital to limited partners in CMBs Group VI-A, Group VI-B and Group VI-C EB-5 partnerships. (Read more)
Globofran report on Latin American immigrants in the USA: Where do they come from, what do they invest in, and where do they prefer to live? A new report finds that Houston, LA and Miami are the main destinations, and that Mexicans continue to be the largest group of Latin American immigrants. According to the first report on Immigration Investments by Globofran (download at www. globofran.com/report), with information that explains where Latin Americans in the USA come from, what they invest in, and where they prefer to live, Mexico is the country that has had the largest number of residency permits granted, accounting for 39% of the Latin American total, as well as “nonimmigrant” investor visas issued, with more than 3,700 issued in 2016. (Read more)
Clark County man pleads guilty to defrauding investors
Isaac Benjamin Voss faces up to two decades in prison, three years of supervised release and a $250,000 fine for defrauding domestic and foreign investors, some of whom believed their support would serve as a shortcut to citizenship, according to a release from the U.S. Attorney’s Office District of Oregon. (Read more)
EB5Projects.COM • 2018
A 41-year-old Clark County man pleaded guilty Thursday to a federal charge of wire fraud for misleading investors who believed they were funding a clean energy company.
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M A R C H 2018
Quiros says state EB-5 officials have ‘unclean hands’
Ariel Quiros, the former owner of Jay Peak Resort, has filed a motion claiming that the state is partially responsible for allowing him to defraud investors. The Miami businessman says the state, which sued him in April 2016 for defrauding investors, comes to the case with “unclean hands,” a legal term that is used to show the plaintiff is also liable. (Read more)
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Related Stories: • EB-5 fallout: Vermont wants what’s left of Quiros’ assets to salvage state’s reputation • Is the state of Vermont responsible for the alleged Kingdom Con? Shumlin stayed at Quiros’ Fifth Avenue pad
Golden Gate Global Announces Completion of 10th and Largest EB-5 Fund to Date Golden Gate Global announced today that it has completed fundraising for its 10th EB-5 fund, a $139.5 million raise earmarked for the Candlestick community at Lennar’s San Francisco Shipyard.
Golden Gate Global has raised a total of over $400 million for the San Francisco Shipyard development upon completion of this fund. The massive master-planned community in the Hunters Point-Bayview neighbourhood is the City of San Francisco’s largest active development. (Read more)
EB5Projects.COM • 2018
8th Bridge Capital Discusses Future of the EB-5 Program
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Los Angeles-based private equity firm 8th Bridge Capital talks about the EB-5 immigrant investor program and its future. The EB-5 program is in flux due to changing regulations. In the two-year comprehensive spending budget recently passed by Congress, agreements to fund certain government programs were included. One of these agreements centered on the EB-5 Program, providing funding through the end of March 2018. (Read more)
M A R C H 2018
Investment-for-visa dispute must be arbitrated, federal judge rules, in E3 Investment Group case An Indian doctor who says he was defrauded of $550,000 in an investment-for-visa deal will have to make his claims to an arbitration panel.
U.S. District Court Judge Nelson S. Roman ruled on March 15 that Ateet Kosaraju had not established that an arbitration clause was fraudulent in his agreement with Hastings-on-Hudson visa deal-maker Matthew B. Gordon. “The allegations are absolutely false and untrue,” Gordon said in a telephone interview, claiming it was Ateet who had violated the agreement. (Read more)
CN Global introduces NuRide Transportation Group CN Global introduces NuRide Transportation Group in bringing the ground transportation industry into the 21st century through advanced structural and technological innovation. Based in New York City, NuRide fleets represent a vision for the future of
ground transportation, leveraging technology and integrated business processes to meet today’s needs. With its pioneering software products, NuRide offers complete end-to-end solutions for all For Hire Vehicle (FHV) services. (Read more)
EB-5 gets yet another six-month extension Sen. Grassley said “moneyed” developers quashed reform.
The EB-5 visa program, heavily favored by New York developers as a way of raising cheap capital overseas, is headed toward another six-month extension.
Related Stories: • Omnibus Appropriation Legislation with EB-5 Extension Becomes Law • It seems like EB-5 Investor Visa will get another clean extension until September 30, 2018!!!
EB5Projects.COM • 2018
The so-called “clean” extension does not include changes backed by Sen. Chuck Grassley. (Read more)
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M A R C H 2018
Taiwanese Investors Say DHS Arbitrarily Denied EB-5 Visas Ten Taiwanese investors who poured millions of dollars into a real estate development project in Florida sued the U.S. Department of Homeland Security in D.C. federal court Thursday, alleging the government unfairly determined the money wasn’t “at risk” and denied their investor visas under the EB-5 program.
The investors contend that the DHS erred in denying their petitions for the program because their individual $500,000 investments allegedly were not at risk because of a redemption option in their agreement with NFTC LP. (Read more)
RC Authorization to 9/30/2018, Processing Times, New RCs
The last time Congress voted a significant regional center program extension was 2012. Since then, the program has been extended a few months at a time, in connection with government funding. This is now happening again with H.R.1625, the vehicle for the Consolidated Appropriations Act 2018, which was signed by the President today. (Read more)
EB5Projects.COM • 2018
DACA left out of omnibus, limbo continues
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Congress has once again put off action on immigration, as it prepares to vote Thursday on what will likely be the last piece of major legislation it tackles before the midterm elections without a solution for the Deferred Action for Childhood Arrivals policy.
There was a last-minute effort to attach a DACA plan to the spending deal, even after House Speaker Paul Ryan had long promised his right flank he would not do so. The White House signalled a late openness to some sort of compromise, sparking talks. (Read more)
M A R C H 2018
State Department Provides Update Regarding Retrogression for Vietnam The Department of State (DOS) has informed EB-5 stakeholders that retrogression of the EB-5 category in the chargeability area including Vietnam, is imminent; however, DOS is unable to provide specific dates of which priority dates will retrogress at this time, though it did clarify that this is not going to occur in April 2018. As a matter of process, each month the National Visa Center (NVC) schedules interview appointments for those immigrant visa applications where processing is complete and the Priority Date (PD) is current per the “Final Action Dates for Employment Based Cases” (or Chart A) of the Visa Bulletin. (Read more) Related Story: US to suspend certain visas for Vietnamese nationals
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M A R C H 2018
EB-5 Legislation Pronounced Dead on March 19, 2018 The draft legislation, The EB-5 Immigrant Investor Visa and Regional Center Reform Act, published on Thursday, March 8, 2018, was pronounced dead on March 19, 2018.
The draft bill was flawed in many ways, especially the lack of relief for quota backlogs and the elimination of judicial review; however, it was arguably one of the more palatable EB-5 legislative drafts seen to date. It sought to make some drastic changes to the EB-5 program. (Read more)
Dominion Realty Partners to develop 31-story mixed-use tower in Charlotte
F.N.B. Corp., the parent company of First National Bank (FNB), announced that its regional headquarters will anchor a new 31-story, mixed-use tower in Charlotte, North Carolina, according to a statement from the company. FNB Tower-Charlotte will feature 160,000 square feet of Class A office space, 215 luxury rental apartments and a street-level FNB branch. The company’s 30,000-square-feet space will house F.N.B.’s Charlotte-area office. (Read more)
EB5Projects.COM • 2018
No-change February
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I thought we’d see final action for EB-5 regulations, because the Fall 2017 Unified Agenda said we would (having advanced the anticipated action date from April to February), Congressmen who might’ve been behind alternative legislative action (Grassley, Goodlatte) instead sent a letter in April 2017 urging DHS to finalize the regulations, USCIS Director Cissna committed in his confirmation hearings in May 2017. (Read more)
Related Stories: • EB-5 Reform: Missed Opportunity • Sen Grassley: real estate lobbies block EB-5 Chinese visa reform in Omnibus Bill
M A R C H 2018
EB-5 lawsuit: Northeast Kingdom investors pressed to name law state violated A judge gave attorneys for the state and for investors suing over the misuse of EB-5 funds in the Northeast Kingdom more time Monday to refine their arguments. At issue: whether or not the lawsuit should be dismissed because state officials have immunity for their actions. Judge Thomas Carlson ended the hearing in Vermont Superior Court after more than two hours, asking the attorneys to have their briefs ready in two weeks. (Read more)
Kushner’s Company Regularly Filed False Work Permits in New York The company has also been accused of weaponizing construction efforts to harass tenants.
The Kushner Companies, the family business that Jared Kushner ran before joining his father-in-law in the White House, regularly filed false paperwork with New York City regulators, according to the Associated Press. The more than 80 work permits, which were filed in relation to 34 buildings in New York from 2013 to 2016, declared that the company had no rent-regulated tenants in the buildings, when in fact they had hundreds. (Read more)
Republicans made the elimination of onerous Obama-era regulations an early priority, but the effort has since stalled. That’s unfortunate, as a great many destructive rules remain either in effect or in the pipeline. One such proposed regulation, an effort to sabotage the EB-5 investor program, ought to be addressed in any upcoming immigration package produced by Congress. While it is true that the overall issue of immigration is contentious, there are some areas where consensus should be possible. (Read more)
EB5Projects.COM • 2018
Employment-based visas the way to foster America’s economic success
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M A R C H 2018
Australian Developer Looking to Buy Maine Ski Area for Visa Benefits
Last June, an Australian-based development company, the Majella Group, announced that they would be buying Maine’s Saddleback Ski Area, which has been closed since 2015, promising to make it “the premiere ski resort in North America.” Last week, however, in an audio clip received by News Center Maine, it appears the company’s interest in the resort may have some ulterior motives. (Read more)
Buyers of Saddleback Ski Area say re-opening resort is not a main concern.
Related Stories: • Saddleback buyer accused of deceit and abusing Australian visa program, according to lawsuit • Foundation that tried to buy Saddleback is still meeting in case deal crumbles • Saddleback’s prospective buyer denies that visa program is driving the purchase plan • Saddleback sale linked to controversial visa program • Saddleback buyer reportedly won’t ‘lose any sleep’ if resort doesn’t reopen
LA Suburb’s Development Boom Has Residents Feeling Left Out
EB5Projects.COM • 2018
Alhambra High School is located half a block from new mixed-use high-rise developments on Main Street. The rapid development has attracted visitors and boosted city coffers. The changes have also increased traffic and levels of pollution. A new report by Asian Americans Advancing Justice-Los Angeles says the San Gabriel Valley has some of the worst pollution in California.
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Johnny Lam likes to ride his bike around Alhambra, but often has to dodge cars while navigating the city’s poor biking infrastructure. (Read more)
Project Updates
M A R C H 2018
KNIC Project Could Start 8-10 Months from Now It could be another 8 to 10 months until developers of the Kingsbridge National Ice Center could see shovels in the ground. Those are some of the new details outlined in a letter drafted on March 5 that recapped a closed-door meeting between Kevin Parker, founder of the project, and community stakeholders tied to the project on March 2. The Norwood News obtained a copy from a source who asked for anonymity as they are not authorized to speak on the project. (Read more)
Tru by Hilton Expands Presence across the South with Three New Properties EB5Projects.COM • 2018
Hilton‘s (NYSE: HLT) midscale hotel brand, Tru by Hilton, is increasing its presence across the South with three new property openings in Little Rock, Arkansas; Meridian, Mississippi and Louisville, Kentucky. Tru by Hilton is committed to meeting the needs of both owners and guests by delivering a consistent product that doesn’t sacrifice a quality experience over price. These three properties join six properties currently open in the southern region of the U.S., with nearly 30 additional properties expected to open in the South this year. (Read more)
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The Wharf’s General Contractor Sues Project’s Architect for $5M Clark Construction has filed a lawsuit against Perkins Eastman over services performed during the first phase of construction at The Wharf, D.C.’s $2.5B Southwest Waterfront development. The project’s general contractor is seeking $5M in damages, claiming the Wharf’s lead architecture firm made significant errors and omissions in its design documents that cost Clark millions of dollars during the project. (Read more)
Foreign investment gets Mount Snow through ‘volatile’ winter
Mount Snow executives say hard work and expertise are helping the Dover resort thrive this winter in spite of “volatile” weather. But there is another factor – EB-5. The pay-to-stay foreign investment program paid for Mount Snow’s new West Lake snowmaking system. And administrators say the $30 million project, completed just before the start of the ski season. (Read more)
EB5Projects.COM • 2018
Terry McAuliffe’s ‘Get Rich Quick’ Scam Goes Bust
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GreenTech Automotive, former Virginia Governor Terry McAuliffe’s governmentsubsidized electric car company, filed for bankruptcy in late February. The announcement came on the heels of a string of lawsuits accusing the firm of scamming investors out of vast sums of money.
McAuliffe, an ex-Democratic National Committee chairman, co-founded the “affordable” car manufacturer in 2009 after losing the 2009 Democratic gubernatorial race. (Read more) Related Stories: • Troubled electric car company with ties to McAuliffe files for Ch. 11 • Ex-DNC Chair’s Green Co. Goes Bankrupt after Watchdog Takes Closer Look
M A R C H 2018
Ecco on Orange Construction Update (March 2018) Ecco on Orange, the second of four assets within Atlantic American Fortune Fund II, LP, is now under construction. (Read more)
The curious case of Captain Chen: The deals that never came Capt. Chen raised funds from foreign investors for projects that never happened. No one stopped him. To officials in Longview, a scrappy Washington mill town on the Columbia River, the “Cool Port” proposal was like manna from heaven. A Sammamish resident, Capt. Huy Ying Chen, came to town in early 2013 with an ambitious plan for his company, Great Ocean Capital Holding, to build an international shipping terminal called “Cool Port — Port of Longview.” (Read more)
Wyndham Garden Ft. Lauderdale Airport Construction Update (March 2018) Construction of the Wyndham Garden Ft. Lauderdale Airport (the first of four assets within Atlantic American Fortune Fund II, LP) as of March 2018. (Read more)
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M A R C H 2018
Tradepoint Atlantic granted $20M from federal government toward port upgrades Tradepoint Atlantic the massive redevelopment project at the former Sparrows Point steel mill in Baltimore County — will get $20 million from the federal government to upgrade its port facilities, officials announced Wednesday. (Read more)
Criterion selling Astoria dev site to Cape Advisors for $85M: lawsuit
Bassuk Org., Greystone EB-5 claim Shibber Khan’s firm backed out on $230M in construction financing Shibber Khan’s Criterion Group is selling its 711-unit residential development site on the Astoria waterfront to Cape Advisors for $85 million, according to court documents. (Read more)
EB5Projects.COM • 2018
First proton therapy center in Middle TN to open in Franklin
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Middle Tennessee residents will soon have a new option for an innovative cancer treatment.
Knoxville-headquartered Provision Healthcare is opening its second proton therapy center in the state, across from the Williamson County Medical Center in Franklin. (Read more)
M A R C H 2018
CIBC Provides $25M Construction Loan for Ft. Lauderdale Tower a decade. CIBC Bank provided financing for 100 Las Olas, slated for completion in the first half of 2020. Bob Vail, president of developer’s Kolter Urban, closed the deal. (Read more)
Related Stories: • SB Architects, Simeone Deary, Bob Martin partner for tallest building in Fort Lauderdale • See a new video tour of 100 Las Olas, poised to be downtown Fort Lauderdale’s tallest building • Fort Lauderdale needs to go seriously vertical, developers say at ULI • From new towers to restaurants and retail, Las Olas corridor emits a powerful vibe • Kolter scores $25M loan for 100 Las Olas Slated for delivery in 2020, the 46-level building known as 100 Las Olas is already one month ahead of • Fort Lauderdale’s tallest tower wins more funding for construction schedule and projected to be the tallest of its kind in • Florida developer files for Chapter 11 bankruptcy the city. protection Kolter Urban has closed on a $25 million loan for • Facing foreclosure, Las Olas Ocean Resort the construction of the first new condominium developer files for bankruptcy development in Fort Lauderdale, Fla., in more than
New-build hotel continues Southeast expansion for EVEN Hotels Brand InterContinental Hotels Group (IHG), one of the world’s leading hotel companies, and Epelboim Development Group, an established hospitality developer, today announce the ground-breaking of a new EVEN Hotels property in Alpharetta, Georgia.
Set to open in the third quarter of 2019, the newbuild construction hotel continues the expansion of the wellness-focused brand’s footprint in the Southeast and marks the first location in metro Atlanta. (Read more)
The suit is another bump in the road for the developer’s $1B project
A Los Angeles lawyer and his one-person firm are being sued for allegedly tricking a financial services company that manages the EB-5 visa program of the $1 billion Metropolis project. (Read more)
EB5Projects.COM • 2018
Entity tied to Greenland USA sues lawyer for alleged EB-5 scheme at Metropolis
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M A R C H 2018
Proposed Changes to Family-Based Immigration Under President Trump: Would Your Family Be Affected? President Trump has communicated his desire to cut down on family-based immigration, or what he calls “chain migration,” a longstanding pillar of the American immigration system that enables citizens and permanent residents to bring their relatives to the United States.
This is timely because media outlets have recently reported on how the parents of Melania Trump might have immigrated to the United States. (Read more)
EB5Projects.COM • 2018
SEC Files another Unregistered Broker Action Tied to EB-5
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The Commission has brought a series of unregistered Respondent is a New York City based firm that broker actions in recent years – the cases have specializes in the business of foreign investment in become a staple of Enforcement. One of the areas the United States. (Read more) which seems to generate a continuing series of these cases is the EB-5 program. That program is also the source of the Commission’s most recent case in this area. In the Matter of Edwin Shaw, LLC, Adm. Proc. File No. 3-18384 (March 5, 2018).
M A R C H 2018
EB-5 fraud scheme in Palm Beach lands development team in jail
Funds were allegedly used to buy homes, luxury cars, a yacht, and to pay off personal debt Palm Beach developer Robert Matthews and real estate attorney Leslie R. Evans have been charged with fraud for their involvement in a real estate scam that swindled $50 million from about 50 Chinese and Iranian investors in recent years. (Read more) Related Story: Rowland Pal Robert Matthews Charged With Massive Florida Real Estate Fraud
Extell to Dismantle the Tower Crane at One Manhattan Square
After more than two years on the job, the tower crane To accomplish the task of removing the 200-foot affixed to Extell’s One Manhattan Square is ready to vehicle, construction management firm LendLease come down. It is mere days from dismantling. is closing off Pike Slip for three days starting Friday night at 10pm and ending Monday at 5am. Here’s how it’ll affect the neighbourhood: (Read more)
Extell sells $107M in shares at its $4B Central Park Tower condo project Sale of 17% of Class B shares will bring $94M in cashflow: TASE documents
EB5Projects.COM • 2018
Gary Barnett’s Extell Development sold $107 million worth of preferred shares in the $4 billion Central Park Tower development, according to documents filed with the Tel Aviv Stock Exchange on Monday. (Read more)
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M A R C H 2018
A Powerhouse NYC Bar Brand Is Moving In at the Wharf The unnamed rooftop bar project is expected to arrive atop the Intercontinental next spring.
Gerber Group’s Mr. Purple sits atop the Indigo Hotel in NYC’s Lower East Side. The Wharf is expected to introduce a scenic watering hole on the 12th floor of the Intercontinental Hotel by next spring. The Gerber Group, which runs trendy New York City hotel bar Mr. Purple and Grand Central’s reinvigorated Campbell Bar. (Read more)
LeCesse Set to Break Ground on New Class-A Downtown Apartment Community in Orlando, Florida
EB5Projects.COM • 2018
March 27, 2018: LeCesse Development Corp. is set to break ground on one of its most ambitious projects this year, a 300-unit, best in class community in the SoDo district of Downtown Orlando. ECCO on Orange is part of an exciting, new, mixed-use project, Lucky’s Corner, which is set to feature a Lucky’s Market, Twistee Treat, Starbucks, Jersey Mike’s, la Madeline and more... (Read more)
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M A R C H 2018
Lottery now open for 81 affordable units at 10 Halletts Point in Astoria
The lottery for 81 affordable housing units at 10 Hallets Point is officially open. The first of seven buildings at the 2.5-millionsquare-foot development project in Astoria will open this summer and the lottery for 81 affordable units in the tower is now open. The building at 10 Halletts Point will include 405 units, two outdoor terraces, a fitness center with a yoga studio and a 25,000-square-foot supermarket. (Read more)
United States Proton Therapy Market 2018-2025 Featuring Hitachi, Ion Beam Applications, Mevion Medical Systems, Optivus & Varian Medical Systems The “United States Proton Therapy Market (Actual & Potential), Patients Treated, Reimbursement, Clinical Trails, Proton Therapy Centers, Major Deals, Key Company Profiles & Demand Forecasts to 2018 - 2025” report has been added to ResearchAndMarkets.com’s offering. ‘United States Proton Therapy Market (Actual & Potential), Patients Treated, Reimbursement, Clinical Trails, Proton Therapy Centers, Major Deals, Key Company Profiles & Demand Forecasts to 2018 - 2025 (Read more)
Quiros’ lawyers attack state over asset freeze bid; state attorney fires back
“Indeed,” the filing by Quiros’ lawyers says, “the State’s Motion appears to be a thinly veiled attempt to deflect attention away from the State’s own misconduct (Read more)
EB5Projects.COM • 2018
Lawyers for Jay Peak developer Ariel Quiros are coming out swinging against the Vermont Attorney General’s Office, contending the government’s latest filings in its investor fraud lawsuit against him are an attempt to cover up the state’s own misdeeds.
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M A R C H 2018
Investment group eyes Palm House as foreclosure trial is delayed An investment group that includes an owner of the still-unfinished Palm House hotel-condominium on Royal Palm Way is preparing to make an offer soon to buy the beleaguered development, an attorney has told the Daily News. “We’re hoping that we will have a viable purchase offer” by the end of the month, C. Brooks Ricca, of the West Palm Beach law firm C. Brooks Ricca & Associates, said Friday. (Read more) Related Stories: • A Significant Outcome has Been Achieved for Investors in the Palm House Hotel by USREDA, SARC and its Companies • Florida Attorney, Developer Charged in Connecticut with Immigrant Investor Fraud
Bank of America Report
The world’s largest steel mill once operated on a 3,000-plus acre riverside point in southeast Baltimore, north of the United States Naval Academy and Chesapeake Bay. At its peak, the Bethlehem Steel mill employed tens of thousands of workers to meet global demand and serve an evolving American landscape. Its products can be found within the Golden Gate Bridge’s girders, the George Washington Bridge’s cabling, and armaments for U.S. forces from both world wars. (Read more)
Grassley blames “moneyed” NYC developers for rejecting EB-5 reform
EB5Projects.COM • 2018
Visa program expires March 23.
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Sen. Chuck Grassley is blaming “moneyed” New York developers for crushing proposed legislation that would have extended the EB-5 visa program for five years. (Read more)
APRIL 2018 Posts and Project Updates
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Posts
A P R I L 2018
Atlantic American announces Dania Pointe
Atlantic American Partners is excited to announce its 30th EB-5 project. The Residences at Dania Pointe is the first phase of multifamily residential apartments within South Florida’s newest “Work, Shop, Live, Play” mixed-use community - Dania Pointe - located in the Ft. Lauderdale suburb of Dania Beach, Florida. The Residences at Dania Pointe will offer 264 class “A” rental apartment units situated around a central courtyard with a clubhouse, swimming pool, fitness center, and yoga studio. (Read more)
EB5Projects.COM • 2018
Atty Asks 9th Circ. To Affirm He Didn’t Defraud EB-5 Investor
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A California lawyer asked the Ninth Circuit on Thursday to affirm a lower court’s decision granting summary judgment in a suit brought by a former Chinese client alleging that the attorney fraudulently induced her into investing $500,000 in a real estate project in order to secure an EB-5 visa.
John Hu of Hu & Associates LLC argued on Thursday that Shoumin Zhang was improperly raising new facts on appeal, after a California federal judge tossed her claims that Hu had fraudulently told her that a commercial development. (Read more)
A P R I L 2018
Judge Freezes Quiros’ Assets in EB-5 Case
A Vermont judge has agreed to a state bid to freeze the remaining assets of Jay Peak developer Ariel Quiros who recently settled a fraud case with federal regulators. The ruling Wednesday capped the first courtroom hearing in a lawsuit brought by the state nearly two years ago and featured attorneys (Read more)
More wealthy Chinese shell out for UK ‘golden visas’ The number of wealthy Chinese acquiring UK “golden visas” that give residency in return for investing £2m or more in assets rose sharply last year as worries over Brexit paled next to Britain’s attractiveness as a secure bolthole for international money. Mainland Chinese took 116 of the 355 “investor visas” granted in 2017 by the UK government to wealthy individuals (Read more)
BIG reveals first look at Manhattan’s latest “tower-in-the-park”
As seen in the renderings, the building at 3 West 29th Street will consist of two slender (Read more)
EB5Projects.COM • 2018
The Bjarke Ingels Group (BIG) has released the first batch of renderings for its latest Manhattan project, a 60-story office tower set to touch down in NoMad. As first reported by New York YIMBY, “29th & 5th” will rise from the site of the former historic Bancroft Bank Building, replacing an 800-foot-tall luxury condo tower designed by Moshe Safdie.
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A P R I L 2018
EB-5 Process Management, Investor Safeguards and other key considerations when selecting a Regional Center The U.S. Congress created the EB-5 Program in 1990 in order to enable high net worth foreign investors to obtain a U.S. Visa by investing in a U.S. business in a manner that will benefit the economy by creating jobs. To qualify under the EB-5 Program, the foreign investor must invest$1 million in a qualified new
commercial business. That amount is reduced to $500,000 if the new commercial business is located in an area with high unemployment. Each investor must also create 10 or more permanent U.S. jobs through his or her investment. (Read more)
4/23 Visa Numbers (China, Vietnam, India, Brazil, S. Korea, Taiwan)
reorganize the file and recalculate projections.) (Read more)
Charlie Oppenheim, Chief of the Visa Controls Office at the U.S. Department of State, spoke about EB-5 visa numbers and allocation at the IIUSA conference on April 23. This post summarizes interesting data from his slides. (The tables pictured below are also in my increasingly untidy Backlog Calc Excel file. When I have time, I’ll
EB5Projects.COM • 2018
EB-5 TEA Map Release for 2018 – with Webinar
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With the release of the finalized unemployment data from calendar year 2017, we have updated our Annual EB-5 Targeted Employment Area Map to reflect the most up-to-date unemployment data for census tracts.
Key Points! • Sign up for the May 2nd Webinar here • New unemployment threshold is 6.6% (Read more) Related Story: Annual TEA Update
A P R I L 2018
Indians started favouring #EB5 Visa against their all-time favourite #H1-B #visa According to the article published by #CNN Money, Indians started favouring #EB5 Visa against their alltime favourite #H1-B#visa. Read the attached link to find why.
Facing a crackdown on their favourite visa to enter the United States, hundreds of wealthy Indians are turning to another program that fast tracks immigrants to a green card. (Read more) Related Story: H1-B visa troubles catapult Indian nationals towards EB-5
Corruption Related To EB-5 Appears To Be Rampant EB5Projects.COM • 2018
International investors need to do real due diligence before dropping $500,000 or more on an EB-5 investment. As evidenced by recent events in Palm Beach County, the fact that an EB-5 developer appears to be successful and the fact a lawyer is involved in the project are not indicators of success and do not negate real due diligence. (Read more)
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A P R I L 2018
Citizenship for sale: EB-5 visas and the wealthy’s brilliant plan to help the wealthy
This poem might as well be the mission statement for the U.S. government’s EB-5 visa program, which sells a quick path to American citizenship. Could there be a more perfect fit? A bipartisan collection of self-appointed “good government” types recently tried to reform, or end, this program. That would be a mistake. (Read more)
Related Stories: • With better regulation, the wealthy foreign investor program can be successful • The surest path to a green card may be an investor visa — for $500,000 • Ten Thousand Wealthy Aliens Annually Obtain Visas, Green Cards via EB-5 Program; 82% of Real capitalist Americans know that programs Applicants from One Country like EB-5 shouldn’t be reformed. They should be unchained so rich foreigners and developers can cash • EB-5 Investors in America: The Gift that Keeps on Giving in.
EB-5 Franchise Investment Visa
The phenomenal increase in the past five years of EB-5 applications, in particular those through regional centers, has eclipsed the number of applications for almost two decades since EB-5’s inception in 1990. Much of that increase can be attributed to the rapid economic growth and the resulting wealth in China and unprecedented rise in regional centers. As investors become more wary of the inherent ailments of the regional center program (Read more)
EB5Projects.COM • 2018
Update on Vietnam Retrogression
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The U.S. State Department has released its monthly Visa Bulletin for the month of May 2018. Notably, the priority dates for the Regional Center EB-5 category for nationals of Vietnam have become subject to retrogression. As of May 1, 2018, only those approved Vietnamese EB-5 investors under the Regional Center Pilot Program whose EB-5 petitions were filed earlier than July 22, 2014 will be able to proceed with the processing of their immigrant visa applications. (Read more)
Related Story: Retrogression Besets Vietnam – But It’s Not Going To Be As Bad As China
A P R I L 2018
Chinese investment in California’s Temecula wine region stalls, but tariffs aren’t to blame It’s not as famous as Napa Valley, but Temecula is still a hotspot for wine-related tourism in Southern California. Several Temecula-area developments were funded by Chinese investors through the U.S. EB-5 investor visa program. But there’s been a recent pullback of Chinese investor activity in the “golden visa” program and some projects have “stalled.” And now the escalating U.S.-China trade dispute is adding further risk given Beijing could resort to antiU.S. backlash and dampen further investment. (Read more)
EB-6 Probation Business Visa
After a really, REALLY long time (see the date It is called the International Entrepreneurs Rule and included in the original question to remind yourself ), it will (barring any changes to the rule by the new the US government have finally settled on a new rule. administration- which, given the last 100 days, are An alternative to the proposed EB-6 Startup Visa was not totally out of the realm of possibility) come into force on July 17, 2017. (Read more) finalised on 17 January, 2017.
EB-5 No-Reform Act, RC List Changes
EB5Projects.COM • 2018
On Friday, IIUSA reported that “Yesterday IIUSA met with Republican negotiators and received draft legislative text that is being proposed for inclusion on the March 23rd Congressional omnibus package… We expect the House to vote the omnibus out of the chamber as early as March 16, allowing the Senate the entire week of March 19 to pass the measure before government funding expires on Friday, March 23. (Read more)
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USIF’s Nicholas Mastroianni Announces EB-5 Petition Approvals Issued to Investors for The Charles in New York City I-829 petition approvals have now been issued for another successful U.S. Immigration Fund EB-5 project offering, The Charles, in NYC’s Upper East Side We want to congratulate our EB-5 investors who recently received their I-829 petition approvals, We wish these families all the best on realizing their own American Dream”— Nicholas Mastroianni III, President of USIF. U.S. Immigration Fund (“USIF”) is proud to announce the first I-829 petition approvals issued to EB-5 investors who invested in (Read more) Related Story: Nicholas Mastroianni CEO of U.S. Immigration Fund in FL Announces Repayment of EB-5 Investment to Via Mizner Investors
EB-5 Alert – Recent System Conversion at USCIS Results in 90+ Day Delay for I-829 Receipt Notices and ASC Appointment Notices Due to a recent system conversion at the United States Citizenship and Immigration Services (USCIS), all I-829 receipt notices and ASC Appointment notices are now delayed 90 days or more. This may be dismaying for many EB-5 investors and their dependent family members who may have waited a long time to reach this final step in the EB-5 process.
Since the I-829 petition can only be filed 90 days prior to the expiration of the EB-5 investor’s conditional permanent resident (CPR) status, the 90+ day delay in the issuance of receipt notices on the part of USCIS is at the top of the list of problems plaguing the I-829 process right now. (Read more)
EB5Projects.COM • 2018
Leahy, others urge Trump administration to finalize EB-5 regulatory reforms
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In a joint letter to the Secretary of Homeland Security, Senate and House Judiciary Committee chairmen Chuck Grassley (R-Iowa) and Bob Goodlatte (R-Va.) and former Senate Judiciary Committee chairman Patrick Leahy (D-Vt.) urged the swift implementation of regulations that would drastically curtail the amount of fraud and abuse that has become common in the EB-5 regional center program.
“As we have noted several times since the publication of these proposed regulations, they would, if finalized, dramatically reform the EB-5 program and re-align the program with what Congress envisioned in 1990. (Read more)
A P R I L 2018
New Litigation and AAO Decisions (“invest” requirements)
Appeals and litigation give a rare public glimpse into how the Investor Program Office is adjudicating I-526 petitions. It appears that IPO may be in the midst of a campaign to reinterpret/enforce the EB-5 “invest” requirements as described in 6 USCIS Policy Manual G.2 There have been a spate of denials that turn on language in the securities and transaction documents. (Read more)
Spotting Fraud in EB-5 Schemes
For foreigners looking to become citizens of the United States, the EB-5 Immigrant Investor Visa program can be an extraordinary gift if handled lawfully, or a financial nightmare if ripped apart by fraud. While foreign investors are primarily interested in gaining resident status in the United States, some EB-5 operators or agents are more interested in attracting and misappropriating the money. If the project or the money goes sideways, that can doom the entire immigration application process, leaving investors without both visa and cash. (Read more)
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A P R I L 2018
SEC Increases Scrutiny of EB-5 Investment Fraud The Immigrant Investor Program, or EB-5 Program, was until recently a little-known visa preference program operated by a division of the U.S. Department of Homeland Security. But the program made headlines in January 2018 when The Wall Street Journal reported the Kushner Companies’ use of the program was under investigation by the Securities and Exchange Commission (SEC).
The program, which provides visas to wealthy foreign investors in exchange for a $1 million investment in U.S. enterprises (Read more) Related Story: SEC Takes Definitive Action on the Sale of EB-5 Securities - Industry Stakeholders Should Take Notice
EXCLUSIVE: By CHLOE, the vegan Shake Shack, receives $31 million investment to expand globally
By CHLOE, the New York City-based fast-casual vegan restaurant that opened in 2015 with a similar service model to Danny Meyer’s hit burger chain, recently received $31 million in funding from Bain Capital, Kitchen Fund, Collaborative Fund, TGP International/Qoot International, and other strategic investors to expand to 20 locations in the US and internationally, Moneyish has exclusively learned. (Read more)
EB5Projects.COM • 2018
EB-5 Visa Waiting Line and Visa Allocation
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People who use EB-5 face some tough facts: • Demand for EB-5 visas (annual I-526 filings) has been three to four times higher than EB-5 visa availability since 2011, resulting in a backlog now about a decade long. (For those not already familiar with the situation, here’s a simplified explanation.) • New investors from most countries today can still expect to receive a conditional green card fairly promptly after I-526 approval, but only due to exceptions that will allow their applications to skip ahead of (push back) other people stuck in the backlog. (Or the overall wait could be shortened if the visa quota changes, or many people drop out of line.) (Read more)
A P R I L 2018
BEA RIMS II Multipliers Updated for 2016 Data On March 29 last week, the Bureau of Economic Analysis (“BEA”) announced that new multipliers for the Regional Input-Output Modelling System (“RIMS II”) had been released. The new multipliers have been updated to reflect 2016 regional data; they replace the previous multipliers, which had been based on 2015 regional data and had been released at the end of 2016. RIMS II continues to be the most-used model for estimating job creation in the EB-5 industry. (Read more)
The green cards never came! EB-5 investors allege fraud
The lawsuit charges the defendants spent the EB-5 funds on ‘vehicles, homes and other real estate properties’ A trio of Chinese investors is suing a California family that operated as EB-5 visa intermediaries, accusing them of stealing more than $1.5 million. (Read more)
As China puts the brakes on overseas investment, Los Angeles’ development boom takes a hit Metropolis, the $1-billion condominium and hotel complex, is set to be completed in 2019. Two of its buildings are on the market.
What’s the difference between city governments and county governments, they might ask. Or, are tax incentives for hotel builders better in Los Angeles or Santa Monica? (Read more)
EB5Projects.COM • 2018
Last year, Chinese investors interested in buying or developing property in Southern California peppered World Trade Center Los Angeles officials with questions about how best to break into the market.
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A P R I L 2018
Amazon’s Fiscal Discipline Pays Off as It More Than Doubles Profit Amazon.com Inc. on Thursday delivered a double punch, reporting its best revenue growth in more than six years while topping $1 billion in profit for the second straight quarter.
The results surprised investors who were already expecting Amazon to post strong numbers as it extends its dominance in online retailing and builds on gains in cloud-computing services. (Read more) Related Story: Amazon Closes in on Title of Largest U.S. Company
EB5Projects.COM • 2018
Ecco on Orange Construction Update (April 2018)
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Construction of the structured parking garage is underway at Ecco on Orange, the third of four assets owned by Atlantic American Fortune Fund II, LP. Learn more about Atlantic American Partners’ unique, diversified fund approach to EB-5 investing here. (Read more) Related Story: Roger B. Kennedy Construction Breaks Ground on $40M Apartment Community in Orlando
A P R I L 2018
BIG’s Twisting Towers At 76 Eleventh Avenue Begin Making An Impact On The Chelsea Skyline
Chelsea has long been a center of creativity in Manhattan. Recent developments have been strongly inspired by that history. Many of the city’s most notable projects with distinctive architecture style have popped along the new High Line Park, including the Frank Gehrydesign IAC Building, and Zaha Hadid’s 520 West 28th Street. The neighbourhood’s latest impending icon is 76 Eleventh Avenue, a pair of twisting mixed-use towers under development by HFZ Capital. Construction is moving quickly for all components, and thanks to photos by Tectonic, we can see the latest progress. (Read more)
European-style hotel opening before Derby is the next step in Louisville’s downtown growth Just seven months ago there wasn’t a commercial hotel in NuLu, but the rapidly developing neighbourhood will have two by the 2018 Kentucky Derby weekend.
It’s an area that just five years ago didn’t have much more than art galleries to attract locals, let alone tourists to the area. But as the East Market Street corridor has grown into a destination for shops and restaurants, so has its appeal to outsiders. (Read more)
A new apartment development near West Tyvola Road and South Tryon Street is opening soon, the latest in an apartment boom that shows no signs of stopping. Sycamore at Tyvola will include 288 one- and two-bedroom apartments, and developer Switzenbaum & Associates plans to start tours and leasing in mid-April. (Read more)
EB5Projects.COM • 2018
Hundreds of new luxury apartments are coming soon to a new part of Charlotte
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A P R I L 2018
Le Meridien Hotel construction boss charged in $3.4 million embezzlement scheme A construction manager overseeing the deluxe Le Meridien Hotel project in downtown Houston is among a crew of people across the country charged in federal court with swindling the Beck Group out of $3.4 million in an elaborate scheme involving fake invoices from shell companies.
Moses Seedorf Said, 42, of Houston, who was hired by the international Beck Group to manage the hotel project, was accused Wednesday in a criminal information of wire fraud and conspiracy to commit money laundering. (Read more)
Miami’s EB-5 regional center to shut down Center didn’t generate any money or produce visas since launching in 2014
Miami’s EB-5 regional center will be shut down for failing to generate economic activity and create jobs. Founded in 2014 under former Mayor Tomás Regalado and led by attorney Mikki Canton, the center was supposed to inject foreign investment into Miami’s economy through a visa program known as EB-5. (Read more)
OOIDA’s lawsuit against the Pennsylvania Turnpike Commission has been festering for 10 years
EB5Projects.COM • 2018
The class action lawsuit brought by the Owner-Operator Independent Drivers Association against the Pennsylvania Turnpike Commission has been a long time coming.
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There are plenty of reasons to oppose toll roads, and the Pennsylvania Turnpike Commission epitomizes almost all of them. Fear not, though. I will save some fury for another posting. (Read more)
A P R I L 2018
Kushner’s talks with JC over 1 Journal Square are collapsing
Jersey City Mayor Steven Fulop is threatening to shut down building plans for two luxury rental towers in his city that were planned by Kushner Companies. And Kushner Companies is threatening a lawsuit. (Read more)
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A P R I L 2018
Opioid treatment clinic picks up where county health department left off The county health department building on Scholls Lane is inconspicuous, but it now houses a program one Baltimore-based company hopes can help in the fight against Frederick County’s opioid epidemic. Concerted Care Group took over the health department’s Project 103 outpatient methadone clinic at the end of last year. They’ve created a new program and they’re trying to help more Frederick County patients than ever before through comprehensive, medication-assisted treatment. (Read more)
See new Brooklyn Basin project on Oakland’s waterfront
Join us for a drone flight over the new Brooklyn Basin development in Oakland. The 64-acre project near Interstate 880 and Fifth Avenue will bring 3,000 residences, parks, restored wetlands, a marina and 200,000 square feet of retail and commercial space. Brooklyn Basin covers 64 acres along the Oakland Estuary south of Jack London Square. Affordable housing is one component of the large project spread over 64 acres of former industrial waterfront land along Interstate 880. (Read more)
EB5Projects.COM • 2018
EB-5 Investor Lawsuit against Vermont State Officials Dismissed
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The Tram Haus Lodge at Jay Peak was one project invested in by foreign investors through the EB-5 program. This week a judge dismissed a case brought by a group of foreign EB-5 investors against Vermont state officials. A Vermont judge has dismissed a lawsuit against the state officials who oversaw allegedly fraudulent EB-5 projects in the Northeast Kingdom. A group of foreign investors filed a civil suit last year against officials at the Agency of Commerce and Community Development (Read more)
A P R I L 2018
Palm Beach development duo plead not guilty to EB-5 fraud charges
A federal grand jury indicted developer Robert V. Matthews and attorney Leslie Evans for allegedly diverting $50M of EB-5 investments Developer Robert “Bob” V. Matthews and real estate attorney Leslie Robert Evans pleaded not guilty a month after their arrests on charges that they swindled foreign investors through the U.S. government’s EB-5 visa program. (Read more) Related Story: Palm Beach Real Estate: Is the Palm House Saga Over?
Tradepoint Atlantic Spring Newsletter As our Director of Security JD Gerhart likes to say, this is a town with grit. In our time at Tradepoint Atlantic, we have met families who have lived in the area for decades, couples freshly settled in, and young adults eager to start their careers here. Every day, we see people who hold steadfast to what
they believe in, even in the face of uncertainty. In truth, grit is what this community is all about. Past years may have cast doubt on the future of new business here, but this community took a chance on Tradepoint Atlantic and what’s underway here today. (Read more)
The curse of large real estate projects in Vt. When it comes to sizable real estate development projects in Vermont, it seems that trouble follows. Trouble takes on several forms — from the misuse of funds to misrepresentation.
EB5Projects.COM • 2018
It was not too long ago that officials at the predecessor institution to what is now the University of Vermont Medical Center, misled state officials when it filed its Certificate of Need (CON) with the state. (Read more)
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A P R I L 2018
Lawsuit alleging EB-5 scam at Metropolis is dropped A fundraising entity had claimed the lawyer attempted to take over stewardship of the program
A federal lawsuit filed against a Los Angeles attorney accusing him of running an EB-5 scam at the Metropolis megaproject has been dropped. (Read more)
Kingsbridge Armory set to become ice center
Members of the Northwest Bronx Community Clergy “We got reassurances from the developer that he is Coalition tell News 12 that they met with developers not giving up, he’s going to continue. Now we know last month to discuss the timeline of the project. the project will go forward,” said Desiree PilgrimHunter. (Read more)
EB5Projects.COM • 2018
Fla. Hotel Project Struggles Highlight EB-5 Risks
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When The Bancorp Inc. filed suit in January to foreclose on a $50 million loan for a half-built Fort Lauderdale resort, it thrust into limbo the immigration goals of 60 foreign investors who poured $30 million into the project through the EB-5 visa program, in another vivid illustration of the federal initiative’s risks.
The EB-5 Immigrant Investor Program encourages foreign nationals to invest in American projects as a means of earning permanent residency. (Read more)
A P R I L 2018
Cashless tolls coming to Pennsylvania Turnpike The Pennsylvania Turnpike Commission is continuing its efforts to go cashless with two more tolling points in the state.
The commission announced in March that it will implement cashless tolls on April 29 on the Findlay Connector section in Washington and Allegheny counties and at the Clarks Summit and Keyser Avenue tolling points in Lackawanna County. (Read more)
Holiday Inn Express & Suites Near Universal Orlando Completes Renovation
Holiday Inn Express & Suites Nearest Universal Orlando King Suite
“We are proud to bring a fresh new product while continuing to offer the exceptional levels of customer service to the Orlando Universal area,” said Jane Miller, general manager of the hotel. (Read more)
EB5Projects.COM • 2018
Holiday Inn Express & Suites near Universal Orlando announces the completion of renovations to its property. Changes were made to all guest corridors, guest rooms, and fitness center.
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EB5Projects.COM • 2018
MAY 2018 Posts and Project Updates
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Posts
M AY 2018
SEC Gets Immigration Atty DQ’d In EB-5 Scam Suit
The SEC alleges that attorney Taher Kameli lined his own pockets with some of the nearly $89 million he collected from a variety of mostly Chinese and Iranian investors who put money into senior-living construction projects in Illinois and Florida in the hopes of gaining permanent U.S. (Read more)
EB5Projects.COM • 2018
A Chicago-based immigration attorney the U.S. Securities and Exchange Commission accused of swindling foreign investors seeking EB-5 visas can no longer represent numerous supplemental defendants in the case, with an Illinois federal judge determining that conflicts of interest existed.
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M AY 2018
U.S. Immigration Fund Announces Approval from USCIS for EB-5 Project Halletts Point in Queens
Another U.S. Immigration Fund EB-5 investment project offering, Halletts Point, has received an I-924 project exemplar approval from the United States Citizenship and Immigration Services. U.S. Immigration Fund (“USIF”) is pleased to announce that the I-924 project exemplar application for Halletts Point was approved by the United States Citizenship and Immigration Services (“USCIS”) on May 24th, 2018. To date U.S. Immigration Fund has a 100% I-924 approval success rate. (Read more)
Overlooking immigrants who boost the economy There is a continuing fight, both in the country and within the Republican Party, on the issue of immigration. There’s an anti-immigration wing that wants to slow even legal immigration, a faction that wants to let in almost anybody, and a faction that
wants to make it easier to bring people into the country who can help grow the economy and create jobs. (Read more)
Jackley’s campaign questioned Noem claim about EB-5 money EB5Projects.COM • 2018
An official for state Attorney General Marty Jackley’s campaign has questioned the source for a claim in a current broadcast ad criticizing Jackley.
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In the ad, U.S. Rep. Kristi Noem’s campaign raises questions about Jackley’s willingness to prosecute a figure in state government’s EB-5 immigrant visa program. Jackley and Noem are competing for the Republican nomination for South Dakota governor in the June 5 primary election. The winner faces Senate Democratic leader Billie Sutton in the Nov. 6 election. (Read more) Related Story: Does Jackley show a conservative ‘bias’?
M AY 2018
Texas Corporate Whistleblower Center Now Urges an Insider to Call About Rewards
If you possess information about a Texas based real estate developer cheating Chinese or international investors wishing to participate in the US EB-5 Visa Program, please call us at 866714-6466”— Texas Corporate Whistleblower Center The Texas Corporate Whistleblower Center says, “We are urging an employee of a Texas based real estate developer or EB-5 Visa Regional Center to call us anytime at 866-714-6466 if they can prove the EB-5 Visa Regional Center in bed with a real estate developer and is raising money from Chinese, European (Read more)
EB-5 Investment Voice is the only Podcast series that focuses on and the United States immigrant investor visa, EB-5 and foreign direct investment. Mona Shah, Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians.
Economics is essential to EB-5 yet can be confusing and complex. It is very much involved in all stages of EB-5 and is often necessary to enlist the help of an economist to navigate the complexities of the industry. (Read more)
EB5Projects.COM • 2018
DEMYSTIFYING ECONOMIC REPORTS WITH KIMBERLY ATTEBERRY OF VERMILLION CONSULTING
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M AY 2018
EB5Projects.COM • 2018
CN Global Partners on Korean Tour May 2018
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(Read more)
M AY 2018
AAO Decisions (termination, exemplar approval, bridge financing), Other Updates, RC List Changes AAO Decisions
The Administrative Appeals Office continues to issue non-precedent decisions on appeals of denied EB-5 petitions and applications. The cases give insight into recent USCIS thinking on sensitive topics: material change, deference to prior approvals, regional center oversight responsibilities, regional center activity requirements, bridge financing, and evidentiary requirements. (Read more)
Technical violations of securities law with Edward Gartenberg EB-5 Investment Voice is the only Podcast series that focuses on the United States immigrant investor visa, EB-5 and foreign direct investment. Mona Shah, Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians.
When thinking about EB-5, the media tend to ultimately jump to the conclusion that it is a “Green-Card-forCash” program, without realizing that it is a security offering, which falls under the SEC’s strict scrutiny. (Read more)
Ex-presidential military aide and business partner charged in visa program fraud case
Only rather than using the money to build a promised Algiers hotel complex, retired Air Force Col. Timothy Milbrath and William B. “Bart” Hungerford Jr. spent it buying things like half-million dollar homes for themselves, federal prosecutors say. (Read more) Related Story: Ex-White House military aide one of 2 charged with bilking foreign investors of $15.5M post-Katrina
EB5Projects.COM • 2018
A former top military aide to three American presidents and his business partner made a simple pitch to foreign investors: Pump money into postKatrina New Orleans rebuilding efforts and get an easy path to a green card.
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M AY 2018
Two Maryland Charged For Role in EB-5 Visa Scheme to Defraud Immigrant Investors U.S. Attorney Duane A. Evans announced that William B. “Bart” Hungerford, Jr., age 57, and Timothy O. Milbrath, age 62, both residents of Maryland, were charged today in an eight-count indictment alleging violations of federal law in connection with a scheme to defraud immigrants who sought to invest money in job-creating companies in New Orleans after Hurricane Katrina. According to the indictment, Hungerford and Milbrath conspired together to defraud immigrants who sought to apply for EB-5 visas. (Read more) Related Stories: • Jury indicts two men accused of stealing millions in post-Katrina investment money • Grand jury indicts two men accused of stealing millions in post-Katrina investment money
Russell Barr seeks to intervene in state case against Ariel Quiros
Russell Barr speaks to reporters outside the Lamoille County Courthouse in Hyde Park last summer.
EB5Projects.COM • 2018
An attorney for a group of EB-5 investors has taken a new legal tack since a judge threw out his case last month.
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Russell Barr, of the Stowe-based Barr Law Group, filed a recent motion in Washington County Superior civil court to intervene in a lawsuit brought by the state more than two years ago against Jay Peak’s former owner Ariel Quiros. (Read more)
M AY 2018
EB-5 Investors: How do we get our money back? Ft. Devin Williams EB-5 Investment Voice is the only Podcast series that focuses on and the United States immigrant investor visa, EB-5 and foreign direct investment. Mona Shah, Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians.
The EB-5 program has been running for quite some time and EB-5 investors have seen it all. They hear a lot of promises all over the board, including, among others, money-back guarantees and job buffer assurance. (Read more)
No More EB5 Job Creation through TenantOccupancy Models: New USCIS Policy Reduces Availability of Immigrant Investor Funds to Create Jobs for Americans On May 15, 2018, USCIS revised its Policy Manual, effective immediately. The agency will no longer count the jobs created for US workers through tenant occupancy of EB5 properties. The result of this change is to reduce the amount of immigrant investor funds available to create jobs for US workers. “EB5” refers to the US employment-based fifth preference immigrant visa. EB5 is a program (sometimes called “traditional EB5”) Congress created in 1990 to stimulate the US economy through job creation for US workers using investment by foreign investors. (Read more) Related Story: 5/15 Policy Manual Update (tenant occupancy)
EB-5 Investment Voice is the only Podcast series that focuses on the United States immigrant investor visa, EB-5 and foreign direct investment. Mona Shah, Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians. As has been well-documented in the media, lobbying is an integral element of the American legislative process. Major lobbying firms are retained by interest groups and industry advocates of all types, and the EB-5 industry is no exception. (Read more)
EB5Projects.COM • 2018
Lobbying and EB-5: A Conversation with Akin Gump
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M AY 2018
IIUSA Sends Open Letter to USCIS In Support Of Proposed Rulemaking
EB5Projects.COM • 2018
Linked below is a letter submitted, a few weeks back, 1. Recommendation to expand the material change by IIUSA in support of the proposed rulemaking of section of the Policy Manual to apply to investors USCIS to adopt regulations (the “Regulations”) that with I-526 petition approvals (Read more) will have a material impact on the EB-5 Program, including a list of recommendations to modify the Regulations to include, in part, the following modifications and/or considerations:
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M AY 2018
CN Global Partners announces new Miami $476M EB-5 project
CN Global Partners announces new $476M EB-5 project that will be the construction of a sixty-story tower along the Miami River with approximately 700 residential rental units, 60,000 net square feet of commercial space, and a parking garage (“Phase I”). Four subsequent phases of the Project will create a new mixed-use neighbourhood in Miami’s urban core that will encompass three city blocks and 5.76 acres and will include a mix of residential space, retail/ shopping, office, hotel, entertainment, and parking along the Miami River. (Read more) Related Story: Miami-CN Global Partners announces new $476M EB-5 project
EB-5 Minimum Investments May Change Soon The EB-5 Immigrant Investor Visa program has been a boon to foreign investors and the U.S. economy. This has been especially true during the economic expansion in China and the recession in America. EB-5 has been the right vehicle at the right time. Now investors in countries like India (the second fastest growing economy behind China) and Vietnam are showing increased interest in the investment immigration program.
Speaking of “increased” and “investment,” potential EB-5 investors are once again faced with the potential of an increase in the minimum investments required to participate in the EB-5 program. (Read more)
Embassy Suites by Hilton, a global brand of upscale, all-suite hotels from Hilton (NYSE: HLT), announced the opening of a new hotel located in Pioneer Square, Seattle’s first neighbourhood. The bright and modern Embassy Suites by Hilton Seattle Downtown Pioneer Square is conveniently located near all attractions the city is known for,
including Pike Place Market, Pier 55 and the Seattle Art Museum. With its close proximity to CenturyLink Field and Safeco Field, guests are a short walk away to various sporting events. The hotel is also located next to King Street Station off I-5 and just a mile from ferry terminal, Pier 91, making it an ideal Northwest hub. (Read more)
EB5Projects.COM • 2018
Owned by American Life, the Embassy Suites by Hilton Seattle Downtown Pioneer Square Opens
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Immigration firm sued for ‘inadequate representation’ A Vermont federal court denied a motion for dismissal lawsuit filed against Anthony Korda and The Korda Law Firm by a man who was seeking permanent U.S. residency, instead ordering that the case be moved for jurisdictional purposes to the U.S. District Court for the Middle District of Florida, according to an opinion filed on May 8. Plaintiff Felipe Accioly Vieira clamed in his Aug. 25 lawsuit filed in the U.S. District Court for the District of Vermont that “Korda and his law firm failed to adequately represent and advise Vieira (Read more)
Ira Kurzban on Immigrants’ list and imputing liability for Regional Centers EB-5 Investment Voice is the only Podcast series that focuses on the United States immigrant investor visa, EB-5 and foreign direct investment. Mona Shah, Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians.
The proposed EB-5 update is a compromise still in the works. In this episode, Mona is joined by Ira Kurzban, Esq., who brings in a leading litigation attorney’s perspective to the proposed legislation, to discuss various important but overlooked issues. (Read more)
How Long Does I-526 Take? (III)
EB5Projects.COM • 2018
This post combines, updates, and replaces my two previous posts on I-526 processing times. I’ve divided the post into six sections:
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• Interpreting Official USCIS Processing Time Information • Predicting Average Processing Times • Understanding Variation in Processing Times • Expedited Processing • Individual Processing Time Experience • Resources for Investors (Read more) Related Story: FY2018 Q1 EB-5 Form Processing Statistics
M AY 2018
Koreatown EB-5 Project CN Global Partners announces a new 69M EB-5 project of multi-family development located in the Koreatown neighbourhood of Los Angeles, California. The project will be a seven-story, 173unit apartment project that will include approximately 154 market rate units and 19 affordable housing units. CN Global looks forward to meeting its partners in Asia soon. (Read more)
American Corporate Services, Inc. - Your U.S. Source for Corporate Services
Different businesses operate following different models. Different countries treat businesses and business entities differently. Therefore, establishing a new business in a foreign country or expanding an existing business to a new market in a foreign country should be done with wisdom and great care. American Corporate Services, Inc. (ACS) has the wisdom of experience and expertise and an approach where we care about our clients as if they were family. As far as ACS is concerned, our clients are our family. The range of our corporate services is broad. It goes far beyond finding the best tax havens and places to locate. (Read more)
5/2 Policy Manual Update (CPR while I-829 pending)
USCIS automatically extends the conditional permanent resident status of an immigrant investor and certain dependents for 1 year upon receipt of a properly filed Form I-829. The receipt notice along with the immigrant’s permanent resident card provides documentation for travel, employment, or other situations in which evidence of conditional permanent resident status is required. (Read more)
EB5Projects.COM • 2018
D. Extension of Conditional Permanent Residence While Form I-829 is pending
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M AY 2018
Regulations Update (8/2018) The OMB Spring 2018 Unified Agenda has been published, with new estimated dates on action for EB-5 regulations. • Estimated Final Action in August 2018 for RIN 1615AC07 (EB-5 Immigrant Investor Program Modernization), which proposed investment amount and TEA changes. (The Fall 2017 Agenda had previously anticipated Final Action in February 2018.) • Estimated Notice of Proposed Rule-making in March 2019 for RIN 1615-AC11 (EB-5 Immigrant Investor Regional Center Program), which dealt with regional center designation and the exemplar approval process (Read more)
Banks in China Now Exchange Client Data Internationally As of January 2018, banks in China and Hong Kong have begun sharing customer data with banking and tax authorities in more than 100 other countries. China has joined with other countries who have been cooperating with the data exchange program since
its inception in 2014 and the years following.
In short, the program is a method of providing a Common Reporting Standard (CRS) for the transparency of persons or businesses holding financial accounts in multiple countries. (Read more)
Investors say visa program with ties to Nagin is wrought with fraud
EB5Projects.COM • 2018
A little-known federal immigration program has fallen flat in New Orleans, and the investors allege that the men former Mayor Ray Nagin hired to handle it are committing fraud.
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A little-known federal immigration program one that’s created thousands of jobs and brought billions of dollars in investment to other American cities and towns has fallen flat in New Orleans, and the investors allege that the men former Mayor Ray Nagin hired to handle it are committing fraud. (Read more)
Project Updates
M AY 2018
Ecco on Orange Construction Update (May 2018)
Construction of the structured parking garage is moving fast at Ecco on Orange, the third of four assets owned by Atlantic American Fortune Fund II, LP. Learn more about Atlantic American Partners’ unique, diversified fund approach to EB-5 investing here. (Read more)
Jackley failed on EB-5
EB5Projects.COM • 2018
On Nov. 27, 2013, I appeared before the Brown County commissioners meeting wanting someone to investigate the missing $5 million that had been given as a grant that was to go to construction and equipment for the Northern Beef Packers plant. But it was taken unlawfully into the EB-5 program. Not only did the money disappear, but there was a suicide of a partner in the unlawful use of the money. But who would commit suicide, shooting himself in the abdomen? Where he could lie in hours of pain and agony? (Read more)
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More than 2.3 million cars expected on Pa. Turnpike this weekend: Here are the busiest times to travel Almost 2.3 million vehicles will be on the Pennsylvania Turnpike over the course of the four-day holiday period, according to Turnpike CEO Mark Compton.
“Before you head out on your road trip, plan accordingly and be aware that extra cars mean more traffic and perhaps more accidents. Put your phone down. Slow down. Pay careful attention and take regular breaks,” he said in a press release. (Read more) Related Stories: • Pennsylvania Turnpike Commission Eyes the Internet Business • Road projects planned in Bucks, Montgomery counties this week
Judge sets mid-July deadline for developer to clean up stalled Elgin Memory Care site
The site for the long-stalled Elgin Memory Care development on Route 20 in Elgin must be cleaned up by mid-July, a Kane County judge has ruled. Judge has ruled the long-stalled Elgin Memory Care construction site on the city’s far west side must be cleaned up by mid-July.
EB5Projects.COM • 2018
Kane County Circuit Court Judge David Akemann signed an order last week mandating that Bright Oaks Group, developers of the Elgin Memory Care facility at Route 20 and Nesler Road (Read more)
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Palm Beach attorney accused of EB-5 fraud sells mixed-use property Evans pleaded not guilty in April to charges related to the Palm House Hotel, an unfinished condo-hotel project A Palm Beach attorney who federal prosecutors allege was involved in $50 million EB-5 fraud scheme just sold a three-building mixed-use property in Palm Beach for about $4 million. (Read more) Related Story: Future of beleaguered Palm House remains uncertain
M AY 2018
Mount Baker Associates Closes $76M HUD Loan for Under-Construction Stazione: 25
Construction is underway on the two-building, 301-unit Stazione: 25 apartment complex near the Mount Baker light rail station in Seattle’s Rainier Valley. The complex will offer studio and oneand two-bedroom apartments, a lounge, a media and gaming room, a 24-hour fitness center, a rooftop deck and underground parking. Mount Baker Associates LLC, owned by Michael D. Ross and Robert Spitzer, secured a $76M Department of Housing and Urban Development loan in October for the project. (Read more)
Related Story: Mt. Baker Housing Announces Plans for Affordable Units
Teraphysics sets $47 million crowdfunding goal Teraphysics makes a palm-sized device that vastly increases wireless data speeds.
Teraphysics Corp. aims to raise $47 million through a form of crowdfunding often referred to as a “mini IPO.”
After spending more than a decade developing a palm-sized device designed to vastly increase wireless data speeds, the Highland Heights company plans to start turning its technology into an actual product. (Read more)
Peak Resorts briefly halts EB-5 fundraising “In consideration of these potentially significant changes, the company has suspended its recently announced Mount Snow development. (Read more) Related Story: Mountain pushes pause on EB-5
EB5Projects.COM • 2018
Peak Resorts, the parent company of Mount Snow, is waiting for legislative tweaks before continuing its EB-5 fundraising campaign.
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Our Opinion: A future for The Hermitage Club Now that Vermont Superior Court Judge John R. Treadwell has ruled in favor of appointing a receiver in the foreclosure of the Hermitage Club — the former Haystack Mountain ski area, a golf course, four inns and numerous townhouses, among other properties — attention turns to the future of the sprawling resort complex, and the people who depended on it for employment.
Berkshire Bank, which foreclosed on the Hermitage Club for non-payment of a mortgage exceeding $17 million, succeeded in securing a caretaker responsible for making sure the property remains secure and retains its value. (Read more)
Georgia builder closes $6M land deal for new Delray apartments
Community will have 284 units and 7,500-square-foot clubhouse Wood Partners, an Atlanta-based builder of multifamily projects, just closed its $6.25 million purchase of land in Delray Beach, where it’s planning a new apartment community. The deal includes about 12.3 acres of land just north of Delray’s historic but dilapidated train station at 1720 Depot Avenue. (Read more)
Bankrupt Lucky Dragon Casino in Las Vegas Searching for Fresh Blood, Developer Says Chinese Firms Interested EB5Projects.COM • 2018
Lucky Dragon developer Andrew Fonfa is looking for new investors to take a gamble on the financially distraught off-Strip Las Vegas casino.
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The failed Lucky Dragon casino in Las Vegas has been cleared to begin accepting bids from interested buyers. The off-Strip gaming resort has indicated it’s open to outright buyers, or those willing to partner with current management. A federal bankruptcy court approved the casino’s bid procedures this week, which formally allows parties to enter into negotiations regarding a potential sale or deal for the boutique property. (Read more) Related Story: Lucky Dragon developers want to sell via bankruptcy court
M AY 2018
Tradepoint Atlantic Unifies Sparrows Point with Purchase of Sparrows Point Shipyard Furthers investment made by Tradepoint Atlantic in redeveloping Sparrows Point
150-acre shipyard delivers additional berth capacity for Tradepoint Atlantic’s marine operations Tradepoint Atlantic, a 3,250-acre multimodal global logistics center in Baltimore, Maryland featuring an unmatched combination of access to deep water berths, railroads, highways and storage space, today announced it has acquired the Sparrows Point Shipyard. (Read more)
Epelboim Development signs $21.5M loan for new Orlando Tru by Hilton Epelboim Development Group secured a $21.5-million loan to finance the development of a new Tru by Hilton hotel in Orlando. The eight-story, 259-suite Tru by Hilton on Westbrook Avenue in Orlando will be located across from the Orange County Conveyor Center. (Read more)
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M AY 2018
Miami Judge Tosses Class Action against Ex-Ski Resort Owner
Ariel Quiros was accused of running the biggest to date EB-5 fraud to date at Vermont’s Jay Peak ski resort. A federal judge has dismissed a potential class action against a Miami businessman accused by investors of engineering a $400 million Ponzi scheme tied to fundraising for EB-5 immigrant visas at a Vermont ski resort. (Read more)
The Arts Residences Achieves 60 Percent Sales Milestone Fastest-Selling Luxury Condominium Project in Texas Puts Residents at the Center of the San Antonio Museum District with Full Access to Exclusive Thompson Hotel Amenities and Spectacular Views DC Partners announced it has achieved a major milestone, selling 60 percent of the condominium homes in The Arts Residences at the Thompson San Antonio hotel since its sales office opened last May. “We are proud of reaching 60 percent sold in a year! (Read more)
Two brothers from Cyprus started out flipping North Texas houses. Now they own a homebuilding giant
EB5Projects.COM • 2018
The $1 billion Mercer Crossing community under construction northwest of Dallas is one of the largest projects being built in the town of Farmers Branch.
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The residential community near LBJ Freeway is also the biggest deal yet by fast-growing local builder Megatel Homes — founded by two brothers from Cyprus who started out buying foreclosure properties with money borrowed from their father. “There are 1,000 home sites under development right now in Mercer Crossing, and Megatel controls 700 of those lots,” cofounder Zach Ipour said. (Read more)
M AY 2018
Baltimore Facility Using Comprehensive Approach to Fight Opioid Epidemic One Maryland facility is using scientific-based treatment to address the opioid epidemic and lead the way in recovery efforts. Concerted Care Group say their organization works to treat the whole person and not just their addiction — catering their approach to each individual patient to help them recover. The group has expanded their treatment services to reach even more people suffering from addiction. (Read more)
One University Circle opens its doors
One University Circle’s footprint was designed to honor the circle’s history and maximize the number of balconies with views of the reflecting pool. At 20-story One University Circle in Cleveland, residents are moving into the tallest residential building constructed in 40 years in the region. Although construction workers still are labouring on the upper levels, tenants have started moving into lower floors of the structure, which is open for business. (Read more)
Rafael Viñoly plans angled residential towers for One River Point in Downtown Miami
One River Point – the architect’s first project in Miami – comprises two towers that are positioned at a right angle to one another, with a gap in between them. The separate structures will each reach 60 storeys and be linked by a three-storey bridge wedged close to their roofs. (Read more)
EB5Projects.COM • 2018
Images of a mixed-use development for Miami by Uruguayan architect Rafael Viñoly show a pair of perpendicular towers connected at the top by a wedgeshaped sky bridge.
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Dania Pointe signs Lucky’s Market
Dania Pointe, the overall mixed-use development that will house Atlantic American Partners’ Residences at Dania Pointe EB-5 project, has signed Lucky’s Market as a tenant. The Boulder, Colorado-based affordable organic grocer will open at 150 S. Compass Way in the Dania Pointe Shopping Center in Dania Beach as part of the company’s major expansion throughout the U.S. The specialty grocer currently has 28 locations nationally and has plans to open 20 more through 2019. (Read more) Related Story: Residences at Dania Pointe Construction Update (April 2018)
Macklowe heads to Asia to find buyers for One Wall Street
Sales roadshow includes Hong Kong, Shanghai and Beijing Like Gary Barnett before him, Harry Macklowe is targeting Asian buyers for his latest condominium project. (Read more)
Plan to remake Balsams Resort faces decision on loan EB5Projects.COM • 2018
Developer Les Otten wants to build a hotel, a conference center and condos at the Dixville Notch ski area.
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For four years, developer Les Otten has been trying to resurrect the closed Balsams Resort in Dixville Notch. This month he faces what could be a make-or-break moment: getting New Hampshire to agree his plan is good enough that the state should back a $28 million loan. (Read more)
JUNE 2018 Posts and Project Updates
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J U N E 2018
Federal judge dismisses lawsuit against Hoover District project owners Judge Lioi retained jurisdiction in the case to enforce a settlement reached in January.
NORTH CANTON a federal lawsuit against the developers of the Hoover District project was dismissed this week. Both parties asked Judge Sara Lioi of the United States District Court for the Northern District of Ohio to dismiss the case without prejudice. They also asked that the court retain jurisdiction to enforce the terms of a settlement agreement reached in January. (Read more)
EB5Projects.COM • 2018
CRE Opinion: Keep an Eye on EB-5
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Approvals for EB-5 applications in the Trump administration are up almost 7.4 percent. Here are some takeaways. With all the recent talk on immigration, I thought I’d update the recent status and trends on EB-5. EB-5 is an immigrant investor program created in the early 1990s to pump fresh capital into the American economy by creating jobs using capital from wealthy foreign investors. The ultimate result for the investor is a green card for anyone under the age of 21 in the investor’s family. (Read more)
J U N E 2018
Reform or Eliminate EB-5 Investor Visas: Trump admin tells Congress
The Trump administration has urged the US Congress to either reform or eliminate the EB-5 investors’ visa programme, which provides green cards to foreigners investing at least USD 1 million in the US that create nearly 10 permanent full-time jobs. The move comes from the Trump administration amidst increasing reports of misuse or fraud from foreign nationals. (Read more)
8th Bridge Capital calls Moses Choi a “habitual fraudster” in countersuit
A Downtown Los Angeles EB-5 investment firm has fired back at allegations from a former business partner that it cut him out of business profits involving a project at the Ace Hotel in New York. (Read more)
EB5Projects.COM • 2018
EB-5 investment firm fires back at former business partner over profits spat
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Despite Setback, Immigration Can Favor Economic Growth With the latest Republican immigration bill failing to pass the House, the current dysfunctional immigration system continues. But a few simple regulatory and legislative tweaks, such as reducing paperwork and raising visa caps could have substantial benefits for the economy.
Immigration is so convoluted that even in 2003, when the system was not as complex as today, Second Circuit Judge José A. Cabranes wrote for the court in Drax v. Reno (2003): (Read more)
Constructive IIUSA response to bridge finance and other challenges
During the Q&A period at the EB-5 stakeholder meeting on November, 7, 2017, Carolyn Lee questioned IPO Deputy Chief Julia Harrison about recent adjudication of the bridge financing policy. Ms. Lee: …We are concerned because we have been seeing what we think is a pattern of adjudications where qualifying bridge finance structures structured under the current written policy manual appear to be found to not qualify. (Read more)
EB5Projects.COM • 2018
GOOD News for EB-5 Investors Filing I-829s!
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USCIS released a memo yesterday relating to I-829 processing changes. Short story: instead of getting an automatic 12 extension of status when filing an I-829, USCIS will now extend you and your family for 18 months based on longer processing times. Below is the actual text of the memo.
As of June 11, 2018, petitioners who file Form I-751, Petition to Remove Conditions on Residence, or Form I-829, Petition by Entrepreneur to Remove Conditions on Permanent Resident Status (Read more)
J U N E 2018
New York City Regional Centers completed construction in 15 of its project offerings to date Completed projects have successfully utilized NYCRC EB-5 financing to assist in the construction of over 3.5 million square feet of new development and renovation resulting in thousands of new jobs for New Yorkers.
The New York City Regional Center (“NYCRC”) is pleased to announce that construction of projects in fifteen (15) of its offerings is now complete. These completed projects have successfully utilized NYCRC EB-5 financing to assist in the construction of over 3.5 million square feet of new development and renovation as well as infrastructure upgrades resulting in thousands of new jobs for New Yorkers. (Read more)
Meridian Capital Group, New Nordic Group and Chandler Hotel Group Arrange Deals Meridian Capital Group arranged capital in predevelopment financing for a hotel development site in NYC.
Hotel Business has been following transactions in the industry. Meridian Capital Group, New Nordic Group and Chandler Hotel Group made the list. Here’s what we found: Meridian Capital Group Arranges $88M in Predevelopment Financing (Read more)
Our current $106.2M project in Texas is halfway through its project EB-5 raise. I-526 petitions filed are being approved. We appreciate the hard work of all our associates. (Read more) Related Story: CN Global Partners in China Tour June 2018
EB5Projects.COM • 2018
CN Global Partners Announces I-526 Petitions Approved
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J U N E 2018
Visitors Surprised at Support for City’s Outdoor Asset Governor’s Panel Tours Newport Waterfront, Sees Passion and Potential
A committee of business leaders and community groups formed by Gov. Phil Scott to explore the value of outdoor recreation to Vermont’s economy found a lot to like in Newport City on Monday. The steering committee of the Vermont Outdoor Recreation Economic Collaborative toured the city’s existing trails, bike paths, parks and boardwalk (Read more)
Senate Judiciary Committee hearing on EB-5
The Senate website now has video of today’s Judiciary Committee hearing on EB-5, as well as a statement from Senator Grassley and written testimony from USCIS Director L. Francis Cissna. I’ve uploaded my recording, and transcribed below the major news from the hearing: that EB-5 regulations are not actually close to being finalized, and the
reason is not conspiracy but honest ineptitude. Hanlon’s Razor proves right again. I should’ve known better than to repeat rumors attributing delays to interference. It’s so plausible that, as Cissna says, CIS would be still reviewing public comments, slowed by a complex process and competing demands (not to mention their habitual glacial pace) (Read more) Related Stories: • DHS: More Time Needed for Foreign Investor Visa Overhaul • Sen. Grassley to Trump: EB-5 groups say they’ve “bought off the White House”
EB5Projects.COM • 2018
Red Apple lands $130M construction loan for Coney Island resi project
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425-unit development is going up at 3514 Surf Avenue.
John Catsimatidis’ Red Apple Group landed a construction loan for its under-development residential project in Coney Island, records filed with the city Monday show. (Read more)
J U N E 2018
Naples attorney fails in bid to have malpractice suit dismissed; judge orders case transferred to Florida court
A federal judge in Vermont recently denied a Floridabased attorney’s request to dismiss a suit brought against him by a foreign investor who accuses the attorney of legal malpractice, inadequate representation and unjust enrichment in an alleged scam involving $200 million. Magistrate Judge John Conroy of U.S. District Court in Vermont also ordered the suit transferred to U.S. District Court for the Middle District of Florida in his May 7 ruling. (Read more)
Processing Report, Terminations, Regulations, RC List Changes The processing times reports for EB-5 forms were updated on May 31, 2018 with new Estimated Time Ranges and new variables for calculating the Case Inquiry Date. Until this update, the reports had been constant since March 23, 2018. Form I-526 Processing Time: • Estimated Time Range changed to 2025.5 months (previous report: 25-32.5 months) • Case Inquiry Date changed to today’s date minus 761 days (previous report used -971 days) (Read more)
Related Story: I-526 and EB-5 visa wait times; countryspecific effects of potential changes
Frustrated by up to 15-year wait times, they are talking with attorneys about how to pull out of projects such as 701 Seventh Ave., 1568 Broadway and One Wall St. When eager Chinese citizens invested in the Times Square Edition Hotel through the EB-5 visa program roughly four years ago, they expected to secure green cards within five years. (Read more)
EB5Projects.COM • 2018
Chinese EB-5 investors in major New York developments want their millions backt
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J U N E 2018
Guidance Revised On EB-5 Immigrant Investor Cases Involving Tenant Occupancy; Adjustment of Status Interview Guidelines/Waiver Criteria USCIS announced on May 16, 2018, that it is revising guidance on immigrant investor (EB-5) cases involving tenant occupancy. Previously, the USCIS Policy Manual allowed for tenant-occupancy methodologies used by some petitioners to show that their capital created, or will create, 10 indirect jobs. USCIS said it determined that “these methodologies do not provide reasonable predictions of indirect job creation and are no longer considered reasonable methodologies to support economically or statistically valid forecasting tools. (Read more)
Investor-Visa Door Opens Wider Under Trump America’s troubled investor-visa program is getting a surprising and distressing lift from the Trump administration. Instead of tighter vetting of foreign nationals seeking green cards, more applicants are gaining entry into the U.S. via the so-called “golden visa.”
Compared with the Obama era, denials of EB-5 applications have dropped from 15.3 percent to 7.9 percent, according to new analysis by the Center for Immigration Studies. (Read more)
EB5Projects.COM • 2018
Trump lawyer’s help seems to have boosted Florida immigration firm
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President Trump’s personal lawyer Michael Cohen appears to have helped a Florida immigration firm earn millions after it reached out to Cohen last year, The Associated Press reported. The immigration firm U.S. Immigration Fund (USIF), owned by Nicholas Mastroianni II, was threatened by a regulatory crackdown on the federal EB-5 program that gives foreigners permanent residency if they invest in certain U.S. real estate ventures, according to the AP. (Read more)
J U N E 2018
Beating the EB-5 Backlog: the Grenada E-2 Option for Vietnamese Investors Recently, Vietnam became the second member of a club no one wants to be in: countries facing EB-5 visa backlogs. As the only EB-5 Regional Center with a full time presence in Vietnam, American Venture Solutions has been carefully monitoring the situation to see what options exist for Vietnamese investors who are seeking a quick transition to the U.S., whether they are awaiting their EB-5 approval or have not yet filed. After much analysis and consideration, AVS and Latourlaw are proud to introduce the AVS Turnkey U.S. (Read more)
Ex-Oil Co. VP Fights SEC Disgorgement Bid Over EB-5 Scam that she doesn’t owe authorities disgorgement and civil penalties, saying she was clueless as to the alleged securities violations.
Lei “Lily” Lei, the Bay Area oil and gas company’s one-time vice president of business development, A former official at Luca International Group LLC opposed a bid for summary judgment by the U.S. accused of helping perpetrate a $68 million PonziSecurities and Exchange Commission that also seeks esque scheme involving the EB-5 immigrant investor $544,251 in disgorgement and prejudgment. (Read program told a California federal judge on Monday more)
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J U N E 2018
United States: Where’s My Green Card? Longer waiting times expected for EB-5 immigrant investors
The US Department of State estimates longer waiting periods for EB-5 immigrant investors from the top six participating countries: China, Vietnam, India, Brazil, Taiwan and South Korea. Waiting periods have long existed for immigrant investors born in mainland China and recently, EB-5 visa applicants from Viet Nam have been facing them. (Read more)
EB-5 visa backlog, cross-chargeability and the global market EB-5 Investment Voice is the only Podcast series that focuses on the United States immigrant investor visa, EB-5 and foreign direct investment. Mona Shah, Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians.
When talking about EB-5, people used to only concentrate on China. However, the severe visa backlogs in China (and now Vietnam has been added to the list) have shifted developers’ focal point to India and other emerging markets, making EB-5 more and more towards a global market. (Read more)
Michael Simkins sells warehouse in northwest Miami-Dade to financial technology firm
Buyer, NES Financial, specializes in administering EB-5 projects
EB5Projects.COM • 2018
Michael Simkins just sold a warehouse in northwest Miami-Dade for $5.25 million to a California financial technology company that specializes in administering EB-5 projects. (Read more)
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J U N E 2018
What is this waterfall anyway? At the end of the day, does it really matter?
Priority of payments, otherwise known as the waterfall, is perhaps one of the most important features an investor should consider when picking an EB5 project. Simply put, the waterfall clearly defines the order of claims to the funds by various stakeholders as the funds become available for distribution. (Read more)
Brazil Emerges as New Star in EB-5 Investment, With Further LatAm Growth Likely
Brazilians have been courted in recent years by U.S. developers seeking to raise capital through the EB-5 program. But last month, the industry took a big step to cement Brazil’s status as one of the fastestgrowing players in the EB-5 world—a shift that could be a boon for South Florida’s economy. Brazilians have been courted in recent years by U.S. developers seeking to raise capital through the EB-5 program. (Read more)
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Project Updates
J U N E 2018
Residences at Dania Pointe Construction Update (June 2018) Construction has been underway for months at Dania Pointe, Broward County’s new 102-acre “Live, Work, Shop, Play” mixed-use development, which will include 1,000,000 square feet of premium retail, 500,000 square feet of class “A” office space, 1,000 luxury multifamily residential units, 2 hotels and
ample recreation and relaxation space.
Phase 1 of the retail space is now 93% pre-leased and tenants are expected to open in time for the 2018 holiday shopping season. (Read more) Related Story: Developer Buying Land for Office Project in Dania Pointe
EB5Projects.COM • 2018
Jay Peak investors sue two Vermont attorneys
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A group of Jay Peak investors is suing two Vermont lawyers, contending the attorneys had a conflict of interest. Edward Carroll and Mark Scribner, formerly of Carroll & Scribner, represented both the foreign investors and the resort, the lawsuit alleges. (Read more) Related Story: Receiver presses case against former Canadian owners of Jay Peak
J U N E 2018
Aloft Hotel may finally take flight in downtown Chattanooga
Rendering by Marriott International Inc. / An Aloft Hotel is slated for the Chattanooga Bank Building in downtown Chattanooga. This is a rendering of a prototype lobby for the brand. Bids sought for remaking the 91-year-old Chattanooga Bank Building into a 159-room boutique hotel The biggest of a bunch of planned boutique hotels in downtown Chattanooga appears back on track. (Read more)
Temporary outdoor venue coming to Halletts Point in Astoria Halletts Point is a new waterfront mega-development coming to Astoria, Queens. It’s currently tied up in funding squabbles with the city, but according to The Real Deal, developers The Durst Organization are going to make use of some of the space with a temporary 30,000-square-foot outdoor venue / cultural center that is expected to open this summer. (Read more)
Related Stories: • Astoria waterfront will get a temporary outdoor arts venue on Halletts Point site • Durst plans temporary cultural center for Halletts Point
Federal court postpones Palm House trial until at least September
The single trial for Matthews, 60, and Evans, 70, originally was scheduled to begin Monday with jury selection. (Read more)
EB5Projects.COM • 2018
A federal court in Connecticut has delayed until at least Sept. 4 the fraud trial of Palm House developer Robert “Bob” V. Matthews and Palm Beach real estate attorney Leslie Robert Evans. Both men have pleaded not guilty to multiple felony fraud charges related to alleged financial improprieties at the beleaguered Palm House hotelcondominium project in Palm Beach.
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J U N E 2018
OKC Tiffany Apartments Get $25M FaceLift
The year was 1967. Doctor King preached peace. The space race was in full speed. And the Tiffany Apartments were built on Oklahoma City’s Northwest side, with its 8-foot tall “Tiffany” sign serving as a landmark. But age took its toll on the 94,000 square foot building and it became home to nothing but pigeons and vandals. Fast forward to today. The building has gotten a $25 million facelift, restoring its 1960’s grandeur. (Read more)
Kushner and KABR Sue Jersey City, Claiming Anti-Trump Politics
The seemingly never-ending saga of One Journal Square added yet another layer of drama yesterday, as several subsidiaries behind the project filed suit against Jersey City, Mayor Steve Fulop, and the Jersey City Redevelopment Agency. The history of the development is starting to resemble a novel at this point, but the short version is that KABR Group and Kushner Companies purchased the property in 2015. (Read more)
CEO whose company is buying Saddleback accused of fraud
EB5Projects.COM • 2018
The Australian developer who’s buying Maine’s Saddleback Mountain ski resort was arrested Thursday after a raid on his offices in his home country.
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Sebastian Monsour, CEO of the Majella Group, was charged with fraud and was expected to appear in court on Friday, according to Australian news media. The arrest came after law enforcement officials executed a search warrant at his office in Brisbane, Australia. (Read more)
J U N E 2018
Wyndham Ft. Lauderdale Airport Construction Update (June 2017) Construction of the parking garage and pool is almost complete. Furniture, Fixtures and Equipment have been installed. The project is prepping for opening and expects to receive its Certificate of Occupancy in July. (Read more)
Former Chocolate Factory to Become Mixed-Income Housing CBRE Affordable Housing has arranged financing for the deal. The historic Lowney Chocolate factory is being redeveloped into a 130-unit mixed-income and mixed-use property in Mansfield, Mass.
The project took a step forward when CBRE Affordable Housing arranged permanent financing for the deal. (Read more) Related Story: Mansfield’s chocolate factory edges closer to redevelopment
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J U N E 2018
A First Look at the Interiors of Waterline Square
As Glenn Pushelberg likes to say, “luxury is a bogus term.” The interior designer— principal of Yabu Pushelberg with partner George Yabu—explains that the word no longer carries meaning amid the slew of glitzy properties expanding on the New York City skyline. What should buyers care about? An attention to quality. In the case of Waterline Square—a community comprised of three glassy residential towers, a public park, and an extensive amenity program slated to be completed in early 2019 (Read more)
Balsams funding vote on hold again The team hoping to redevelop The Balsams Resort will explore other options to convince the state Business Finance Authority to back a $28 million state loan guarantee.
“We are moving forward, but we are taking a little pause in the process,” said Scott Tranchemontagne, spokesman for developer Dixville Capital LLC. (Read more)
EB5Projects.COM • 2018
AC Hotel Louisville Downtown plans to be open in time for Derby
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The AC Hotel Louisville Downtown, located in the Nulu (New Louisville) neighbourhood at 727 East Market Street, is accepting reservations for Wednesday, May 2. The new five-story hotel, nestled among Nulu’s shops, restaurants, bars and art galleries, is making final touches before opening its doors. The hotel has created buzz during the last year for its unique modular construction approach. Reservations can be made by visiting achotellouisville.com. (Read more)
JULY 2018 Posts and Project Updates
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J U LY 2018
Creditease Subsidiary Involved in EB-5 Lawsuit Filed Against the US Government
sponsored legal fees” to Chinese investors caught up in the EB-5 backlog. CreditEase started as a peer to peer lender but has since migrated into a plethora of Fintech services.
EB5Projects.COM • 2018
EB-5 is a popular program where foreign individuals may invest in the US and by creating a certain number of jobs gain residence status. (Read more)
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A subsidiary of Fintech Creditease, Good Hope Investment Service, is providing “support and
Related Stories: • Good Hope Sponsors EB-5 Investors in Lawsuit on Visa Backlog • EB-5 Investors Lawsuit Asks US Government to Address Pressing Visa Backlog • Visa Programs Are Important for Real Estate, but Need Reforms to Stay Viable • Investors worry US ‘visas to millionaires’ program may soon be overhauled • US lawmakers cry foul over China-dominated ‘golden visa’ • Helping a program that creates American jobs • Is EB-5 coming apart at the seams?
J U LY 2018
New Pre-Immigration Planning Guide for EB-5 Investors and Other Wealthy Immigrants The recent influx of high-net-worth individuals immigrating to the United States affirms that pre-immigration tax planning is an important move for prospective wealthy immigrants, who ultimately become subject to U.S. tax law upon entry.
Jacob Stein from Aliant Law has recently written a 2nd edition of his book Asset Protection for California Residents. This book is typically a must read for any Californian who has assets that he wants to keep. Jacob’s real-life experience as an asset protection attorney goes far beyond just helping California residents. (Read more)
The Invisible wall is already up and running! While President Trump’s rhetoric on stopping illegal immigration and his administration’s discontinuation of the DACA program and Temporary Protective Status for various Central American countries has dominated discussions of immigration law,
a little-known fact is that this administration has been slowing, and in some cases, stopping even the legal immigration pathway in the absence of Congressional action. (Read more)
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J U LY 2018
Calif. Atty, Firm Accused Again Of EB-5 Scam in $2.3M Suit
A California attorney who has been accused multiple times of exploiting the EB-5 immigrant investor visa program was hit once again with a $2.3 million suit in California federal court Wednesday by a Chinese national who alleged his investment was used for “personal pleasure” rather than the EB-5 project as promised. Yiqiao Huang claimed he has “lost the entirety” of a $550,000 investment in an EB-5 immigrant investor visa scam concocted by attorney Victoria Chan and the Harris Law Group USA LLC, her solo practice. (Read more)
No room for errors when completing EB-5 applications
As the pressure of the approaching September 30, 2018 deadline builds up, it is possible for applicants and their representative immigration attorneys to start cutting corners and file applications that are incomplete as “placeholders”. On July 27, 2018 The National Law Review published an article warning against such practice. (Read more)
EB5Projects.COM • 2018
Visa Numbers (FY2018 Q3 and conference update)
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The 2018 eb5 investors Magazine EB-5 Convention in Los Angeles provided a platform to discuss a challenged industry. The dominant theme was EB-5 visa numbers, and the consequences of excess demand for a limited quota. Panels and conversations discussed alternatives to China in view of untenable visa wait times, alternatives to EB-5 for investors and project companies and service providers, alternatives to the visa quota as currently interpreted, and options for deploying past investor funds during the visa wait. (Read more)
Related Stories: • Per-country limits in question? • Citizenship for Sale: What Could Possibly Go Wrong? • EB-5 Visas: Will We Ever Discuss Merit-Based Immigration?
J U LY 2018
How EB-5 Funding Is Fuelling Harlem’s Latest Luxury Offering When Greystone Head of EB-5 Allison Berman went to China last year to score investors for Blumenfeld Development’s luxury Harlem rental, it took just two weekends to raise $25M. “The sell wasn’t particularly hard — but it was all really in the positioning,” Berman said at Bisnow’s Harlem Investment & Development Boom event Thursday. (Read more)
EB-5 has helped fund development in Milwaukee, but changes loom
BMO Harris Bank, which will be the namesake of the 25-story office tower and its anchor tenant, occupying the building’s first and 11th through 16th floors, agreed to provide a loan. (Read more)
EB5Projects.COM • 2018
When Irgens Partners LLC began working on financing the $132.6 million BMO Harris Financial Center the company is developing in downtown Milwaukee, it found the marketplace did not have a huge appetite to take on a loan of that size.
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J U LY 2018
The Deeper Dig: EB-5 clean-up leaves investors anxious Vermont Attorney General TJ Donovan announces a $2.1 million settlement of the state’s investor fraud case against developers Ariel Quiros and Bill Stenger at a press conference last week in Newport.
The Deeper Dig is a weekly podcast from the VTDigger newsroom. Listen below, and subscribe on Apple Podcasts, Google Play, Spotify or anywhere you listen to podcasts. (Read more) Related Stories: • Missing from state’s EB-5 debacle: An apology • The promise of millions EB-5 brought to Vermont is dead, 200 investors at risk • Stenger speaks out about EB-5 mess • Intervenors Accused Of ‘Hijacking’ EB-5 Fraud Estate Sale • Notice of Termination - Vermont Agency of Commerce and Community Development Regional Centre • Federal agency terminates scandal-plagued Vermont EB-5 Regional Center
Former bankrupt tycoon Siegfried Lee markets immigrant visa quotas linked to US project Bankrupt manufacturing tycoon Siegfried Lee Siu-fung, who once owned the most expensive house in Hong Kong, has moved into property development in the US, targeting investors from the city and China seeking residency status through an investment visa programme. Lee moved his base out of Hong Kong to the US after his company Siu-Fung Ceramics Holdings was delisted in 2000 and he was declared bankrupt in 2001. (Read more)
EB5Projects.COM • 2018
Sponsored Project Update – July 2018
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Commercial and residential property availability continues to be of concern. Average rents in the area also continue to climb with little relief to renter’s insight: quite the inverse of recession inventory levels and rates. Notably, area apartment rent averages top $1,300 per month. It’s just one modern reality of the current state of the multifamily real estate market across Northern Nevada. (Read more)
J U LY 2018
Updates (I-829, Ombudsman, debt arrangements, PM, conference, Vermont, RC list changes) The USCIS page to Check Processing Times was updated last week with minor tweaks to the I-526 and I-924 time calculations, and bad news for I-829. Someone can inquire today about an I-829 petition “outside normal” processing times if he or she filed the I-829 petition 1,175 or more days ago. Statute mandates the service to make a decision on the I-829 within 90 days of the filing date or interview, but it’s currently taking three to four years to make a decision. IPO faces pressure from increased volume of filings and an increasingly tough process. (Read more) Related Story: FY2018 Q2 EB-5 Form Processing Statistics
INDIA VS. PAKISTAN VS. BANGLADESH – “THE SUN NEVER SETS ON THE BRITISH EMPIRE!”
At first sight, one could be excused for thinking that this was an article relating to cricket, after all. With economic growth averaging 6 percent over the last two decades, South Asia has one of the world’s most dynamic economies. India is widely considered as the economic heavyweight in the region, yet one cannot ignore the substantial influence Pakistan and Bangladesh increasingly exert over South Asia. (Read more)
Repayment Update: EB-5 Project, Via Mizner, continues to receive I-829 Approvals
EB5Projects.COM • 2018
Jupiter, FL – July 13th2018 – U.S. Immigration Fund (USIF) is proud to announce that the United States Citizenship and Immigration Services (USCIS) continues to issue I-829 approvals to EB-5 investors who invested in U.S. Immigration Fund’s Via Mizner project in Boca Raton, resulting in investors being repaid their full $500,000 EB-5 investment in the project. (Read more)
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A Private Affair: The Use of Arbitration Clauses in EB-5 Investments
In the United States, litigation in courts is by its very nature a public exercise. Pleadings filed in U.S. courts are publicly available, which means attorneys, investors and the press may have access to potentially scurrilous allegations that not only can damage one’s business reputation but also can invite additional litigation and regulatory scrutiny. Compounding matters, litigation in U.S. courts can be commenced with little expense yet become time-consuming and costly as the parties proceed to resolution of their disputes. (Read more)
Record Number of EB5 (I-526) Approvals for June 2018 at Colombo & Hurd This past month was a banner month at Colombo & Hurd for approval of EB-5 I-526 Immigrant Petitions by Alien Entrepreneurs. A total of 19(!!) EB-5 petitions were approved for clients of Colombo & Hurd during June. The total of just under twenty EB-5 approvals was a record for the firm but one that firm President Carlos Colombo anticipates will be surpassed in the near future. The Approvals included clients from Argentina, Belgium, Brazil Canada, Mexico, the United Kingdom and Venezuela with a wide array of overall processing times. (Read more)
EB5Projects.COM • 2018
Kushner’s Firm Deepens Ties to Those with Business in Washington
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Jared Kushner, President Trump’s senior adviser and son-in-law, boarding Air Force One this month. A company that is investing $700 million in the Manhattan tower of Kushner Companies is also seeking federal approval of its acquisition of Westinghouse Electric. Eighteen months into Jared Kushner’s White House tenure, his family’s real estate firm is deepening its financial relationships with institutions and individuals that have a lot riding on decisions made by the federal government. (Read more)
J U LY 2018
SEC Whistleblower Cases Resulting in Successful Award Claims
Fraudsters brace for impact. Since 2011, SEC whistleblower cases have enabled the Commission to recover more than $1 billion in financial sanctions from wrongdoers, resulting in more than $250 million in awards for whistleblowers. Under the SEC Whistleblower-Reward Program, whistleblowers are eligible for monetary awards when they provide the SEC with original information about violations that lead to successful enforcement actions with monetary sanctions in excess of $1 million. (Read more)
Overselling NYC: Two EB-5 pioneers face investor backlash Michael Gibson, a Miami investment adviser, was hosting clients at his booth in the Las Vegas Convention Center when he became bothered by two men conducting their own business in his quarters.
Gibson was at the 2009 American Immigration Lawyers Association annual conference to promote his advisory service for the EB-5 “cash-for-visa” program, and his booth was busy with developers and attorneys looking to fund real estate projects with cheap foreign capital. (Read more)
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Project Updates
J U LY 2018
One NY Wheel investor’s reason for pulling money out of the project While the fate of the New York Wheel remains in Related Stories: limbo, at least one investor has decided to reduce his • EB-5 Investors Fight Fund Transfer to Risky NYC stake in the project in an effort to “cut his losses.” Project • 124 EB-5 investors seek to block USIF from “I have recently reduced my holding,” said Marino moving money to TSX Broadway Katschmaryk, who modestly says he’s invested a “few thousand” in the Challenger investment group for the development of the NY Wheel. (Read more)
EB5Projects.COM • 2018
Inside the grand opening of One University Circle luxury apartments Residents and community leaders attended Thursday night’s grand opening of One University Circle, a 20-story luxury apartment building located on the city’s East Side.
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Related Story: One University Circle rises 20 floors in University Circle
Located at 10730 Euclid Avenue, the 533,000-square-foot University Circle development is Cleveland’s first high-rise luxury apartment building in 40 years. Construction began in 2016 and residents began moving in this spring. (Read more)
J U LY 2018
Penthouse in Manhattan’s Waterline Square to Hit the Market for $17.25M A penthouse perched atop Two Waterline Square, a glassy tower designed by top architectural firm Kohn Pedersen Fox and interior design duo Yabu Pushelberg on Manhattan’s West Side, is coming onto the market for $17.25 million Tuesday, Mansion Global has learned. (Read more)
Vail Valley rehab, wellness center to break ground Friday, July 13, in Cordillera, expects to begin seeing patients in September After years of litigation, construction will finally begin Friday, July 13, on an addiction recovery and wellness center in Cordillera. All Points North Lodge will be an integrated behavioural health, wellness and addiction recovery program located at the site of the former Lodge & Spa at Cordillera. The facility could begin seeing patients by September, the owners said. The program’s owners and operators, APN Capital, expect to spend $136 million on the project. The first phase is expected to cost $20 million, they said. (Read more)
Attorneys for EB-5 investors took $5M in kickbacks from Jay Peak The former developers of Jay Peak Resort gave $5 million in kickbacks to more than 100 immigration attorneys, according to a lawsuit pending in federal court. Bill Stenger, the former CEO of Jay Peak, gave immigration lawyers a $25,000 payment for every foreign investor they brought into the Northeast Kingdom EB-5 program. (Read more)
EB5Projects.COM • 2018
The Hotel Jay was the signature project of the Jay Peak Resort expansion that used EB-5 immigrant investor money.
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J U LY 2018
Meliá Costa resort in Hollywood scores $70M loan to complete construction
Liberty Grande closed on a $70 million construction loan to complete the Meliá Costa Hollywood Beach Resort, a $180 million condo-hotel. The six-story, 307-unit project is 85 percent sold, a difference of about 15 units since last May when the building topped off. (Read more)
Tiffany House high-rise reopens as retro Oklahoma City apartments The Tiffany Retro Apartments high-rise is viewable from the Northwest Expressway. Its neon, rooftop sign is original.
EB5Projects.COM • 2018
The story behind the name of the Tiffany House is a mystery, but after a developer “fell in love” with the 1960s high-rise apartment building, its future is not.
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Developer Glenn Ferguson said that he could not stop looking at the 12-story building, originally constructed in 1966, every time he came to Oklahoma City. (Read more)
J U LY 2018
Amid immigration uproar Trump keeps mum on the EB-5 immigrant investor program The Trump family’s business ties have magnified controversy surrounding Washington’s EB-5 visa program for wealthy immigrants.
The controversial EB-5 “immigrant investor” program, which sells American citizenship to wealthy internationals, is set to expire in September unless Congress votes to extend it. (Read more)
Boston Properties Joins The Moinian Group In Developing 3 Hudson Blvd.
The REIT is becoming the managing partner, purchasing a minority interest in the 2 million square-foot property in the Hudson Yards district. Boston Properties signed an agreement to become the managing partner in developing 3 Hudson Blvd with the Moinian Group. (Read more)
Wyndham Garden Ft. Lauderdale Airport Construction Update (June)
EB5Projects.COM • 2018
Construction of Atlantic American Fortune Fund II’s Wyndham Garden at the Ft. Lauderdale Airport is nearly finished. As of June 30, 2018, construction was 92% complete and the only pending aspects are the project’s parking garage and rooftop pool. We expect completion very soon and look forward to opening day. (Read more)
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Von Trapp Brewery so far unaffected by closure of Vermont EB-5 center More than 50 jobs were created during construction (shown here) and operation of the von Trapp Brewery construction and the Bierhall, Sam von Trapp said. This story by Caleigh Cross was published by the Stowe Reporter on July 19. Von Trapp Brewing and Bierhall won’t have to refund investors who didn’t get their green cards through Vermont’s EB-5 Regional Center, which was shut down this month by federal authorities, brewery officials say. (Read more) Related Stories:
EB5Projects.COM • 2018
• EB-5 woe not yet affecting Trapps • Ski area developers to pay in immigrant investor fraud case • State settles EB-5 fraud case with Quiros for $2M; Stenger for $100k
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J U LY 2018
Half-Built Fla. Resort Gets OK For Bankruptcy Auction
A stalled Fort Lauderdale resort partially built with $30 million from the EB-5 immigrant investor visa program will be auctioned off next month after a Florida bankruptcy judge on Wednesday approved bidding procedures for the property, which has attracted a $39.1 million initial bid.
Related Stories: • Twenty-one EB-5 investors sue developers of unfinished Fort Lauderdale hotel • Chinese EB-5 Investors in Unfinished Las Olas Ocean Resort Allege Fraud • Fort Lauderdale hotel project to head to auction with $39M stalking horse bid U.S. Bankruptcy Judge Raymond B. Ray said he would sign off on the bidding procedures proposed by debtor 550 Seabreeze Development LLC. (Read more)
U.S. Immigration Fund’s Via Mizner EB-5 Project Receives I-829 Approvals
Another successful U.S. Immigration Fund project offering continues to receive I-829 Petition approvals and subsequent repayment of investors’ capital. U.S. Immigration Fund (USIF) is proud to announce that the United States Citizenship and Immigration Services (USCIS)continues to issue I-829 approvals to EB-5 investors who invested in U.S. Immigration Fund’s Via Mizner project in Boca Raton, resulting in investors being repaid their full $500,000 EB-5 investment in the project. (Read more)
As builders of the Dania Pointe lifestyle complex in Dania Beach broke ground for the entertainment phase of their project Thursday, it was confirmed that a South Florida developer will erect 600 rental apartment units on the site east of Interstate 95.
Designed by Miami architect Kobi Karp, the first phase of Avery Dania Pointe will consist of an eightstory tower with 264 units. The second phase, with another 336 units, will not start until the first one is at or near completion, said Alan Losada. (Read more)
EB5Projects.COM • 2018
Sun Sentinel Article about Residences at Dania Pointe
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J U LY 2018
Walton Westphalia Development Corporation Announces Repayment of Debt Obligations and Refinancing
Walton Westphalia Development Corporation (the “Corporation”) is pleased to announce that it has repaid all outstanding debt to its senior lender having successfully refinanced its multi-use project in Prince George’s County, Maryland (the “Project“ ). The debt repayment and refinancing allow the Corporation to continue to develop the Project, delivering lots to homebuilders, and preparing land for retail and commercial uses. This allows for the continued momentum at Westphalia Town Center. (Read more)
The Turnpike and Interstate 95 Are About to Be Connected After nearly 50 years, it’s the dawn of a new era for two of Pennsylvania’s busiest roads — and the end of a very different one.
On June 29, 1956, President Dwight D. Eisenhower signed a bill allocating $25 billion in federal funds to build 41,000 miles of highways across America. Ike was in the hospital for stomach pain when he launched what we now call the Interstate Highway System. (Read more)
EB5Projects.COM • 2018
Nashville Virgin Hotel’s foreign investors to earn green cards under controversial program
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British billionaire Sir Richard Branson’s tech-enhanced The 14-story Music Row hotel under construction is Virgin Hotel in Nashville scored a $40 million jolt from backed by 80 foreign investors shouldering roughly a controversial U.S. visa program. a third of the total project cost. It will open next summer. (Read more)
AUGUST 2018 Posts and Project Updates
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AU G U S T 2018
Time is ticking on International Talent Acquisitions For many people, merit-based immigration is most closely associated with the polemic H1-B visa program. There is another proven job creating merit-based program, however, that’s received little attention of late. The EB-5 or “investor visa” is one of several business-related visas that may be used as avenues leading to legal permanent residence in the United States. It is perhaps the purest expression of merit-based immigration. (Read more)
EB5Projects.COM • 2018
Summary of policy manual on redeployment
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Policy Manual which concerns EB-5 investors. The policy clarified the “Period of Sustainment” as the Conditional Residency period, marked by “resident since” date” on the green card and ending two years later with “expires” date. This seems to mean complete redemption to the EB-5 investor could be made after the I-829 is filed after the full two years of conditional residency even while the I-829 is pending. (Read more)
On June 14, 2017 U.S Citizenship & Immigration Services (USCIS) issued a revised Volume 6 of its
Related Story: Policy Manual update: Geographic Area
AU G U S T 2018
Westchester & Fairfield Cheat Sheet: Battle over zoning at Stamford office parks rages on The battle over zoning for fitness complexes at Stamford office parks rages on. (Read more)
Related Story: EB-5 fund suing developers of long-stalled Westchester condo project
Florida’s First Radisson RED Hotel Tops Off RivieraPoint is building a 155-key hotel near Miami International Airport. The $34.5 million project is set for completion next year.
RivieraPoint has topped off its six-story Radisson RED hotel in Miami, less than nine months since construction started on the project. Featuring 155 keys, this is the brand’s first hotel in Florida. Besides loans and private equity, the developer is using EB-5 funds to finance the $34.5 million hotel. (Read more)
How an EB-5 visa can secure your financial future in uncertain economic times South Africans can unlock US benefits by investing R7.5m in Pathway’s residence-forinvestment programme
Related Story: Top Investors from South Africa Choose EB-5 Investor Visa for Immigration
EB5Projects.COM • 2018
Amid political instability and uncertainty, South African investors are seeking alternatives for their financial assets, and options to live outside the country so their families can benefit from better schools, tertiary institutions and public transport. This is why residence-for-investment programmes are looking more attractive. (Read more)
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AU G U S T 2018
Tinian-based firm secures EB-5 designation
A Tinian-based company has secured EB-5 designation from a federal agency. Tinian’s Alter City Group’s application for a Regional Center Designation Under the Immigrant Investor Program has been approved by U.S. Citizenship and Immigration Services. Saipan Tribune learned yesterday that the designation is significant since it now includes the ACG under the program, which is a way for a business project to raise capital. (Read more) Related Story: Tinian Gaming Commission suspends Alter City Group casino license
Calif. Law Firm Must Face EB-5 Investors’ Visa Handling Suit A California-based law firm must face allegations that it mishandled Taiwanese and Chinese investors’ EB-5 visa applications after a California state appeals court concluded its actions weren’t protected under a statute that guards free speech and petitioning activities.
EB5Projects.COM • 2018
On Friday a three-judge panel from California’s Second District appeals court overruled a lower judge’s granting of an anti-SLAPP motion filed by Fredrick W. Voigtmann (Read more)
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Grenada citizenship and E-2 visa may solve the Chinese retrogression problem Some countries, notably China, do not have an E-2 treaty with US but face severe EB-5 retrogression. Given this dilemma, many lawyers are advising Chinese investors to apply for citizenship of another third country. (Read more)
Related Story: Developers Forced to Wean Themselves off Chinese EB-5 Funding as Visa Waitlist Balloons
AU G U S T 2018
EB-5 visa fund sues developers of MetLoft Bronxville condos
A visa investment fund is suing the developers of the MetLoft Bronxville condominiums for $5 million, claiming the project is in default. The allegations, at first glance, are simple: The loan was guaranteed by the developers. Now that the project is in default, they must repay the loan. But the MetLoft developers are also embroiled in a messy series of lawsuits, bankruptcies and duelling allegations of fraud. (Read more)
What was once a fertile and cheap source of financing for multifamily and hotel developers is largely absent. Learn the two primary reasons for the slowdown and some solutions in this EXCLUSIVE commentary on the subject. There has been a considerable slowdown in the EB-5 market over the last two years. What was once a fertile and cheap source of financing for multifamily and hotel developers is largely absent. (Read more)
EB5Projects.COM • 2018
Three Solutions for When Your EB-5 Raise Has Come Up Short
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AU G U S T 2018
Hampton Inn media now open
The unveiling of a brand new Hampton Inn in Media, PA, took place this Wednesday, August 15, thanks in part to the generous support of American Lending Center (ALC) and EB-5 financing. Situated only 12 miles from Philadelphia and 15 minutes from Philadelphia International Airport, the 106-room hotel is expected to be a positive addition to the region’s growing economy. (Read more)
How Job Creation Helps the Local Economy In the aftermath of a recession, there is a rise in the number of jobs that are created. This is important for any local economy. There are two main components of the economy that are affected: the businesses and the consumers.
On the consumer side, the net effect of the creation of jobs is an increase in consumer spending and consumption. When jobs are created, more people become employed. (Read more)
American Corporate Services Law Offices, Inc. Announces New Office in Downtown San Diego
EB5Projects.COM • 2018
Dr. Gregory Finkelson announced that American Corporate Services Law Offices, Inc., headquartered in San Francisco, has added their third California location at 402 West Broadway, Suite 400, San Diego 92101. The company’s other California locations are in San Francisco and Sacramento.
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American Corporate Services has provided immigration and business consultation for over 7,000 clients since its founded in 1991. Headquartered in San Francisco, the company currently has branches in Sacramento and representative offices in Eastern Europe and China. (Read more)
AU G U S T 2018
Lawsuit Filed to Relieve EB-5 Quota of Derivatives On July 25, 2018, a lawsuit was filed in the U.S. District Court for the District of Columbia (Feng Wang, et al. v Michael R. Pompeo) that fundamentally challenges the way that the federal government counts spouses and children when determining the annual limits for the EB-5 immigrant visa category. Under present law, EB-5 admissions are limited to approximately 10,000 per year, including not only investors but also their spouses and minor children. (Read more)
Anaheim EB-5 project
CN Global Partners has partnered with First Pathways’ positioning JW Marriott Anaheim EB-5 project in the Korean territory. Seoul Korea is where CN has its roots & office. Our associates in Seoul expect good results for this attractive project. The JW Marriott in Anaheim is planned to be an 11-story luxury hotel with 466 rooms and will be the ONLY 4-diamond rated hotel outside of Disneyland Park. The project has had a lot of great milestones over the past few months including I-924 and I-526 approval from USCIS. (Read more) Related Story: JW Marriott Anaheim EB-5 project
The owner of a Rock Island gun auction is being sued by a Chinese national who gave him $550,000 to gain U.S. residency. Patrick Hogan, owner of Rock Island Auction Co., 819 42nd St. W., also owns several businesses that connect foreign investors with real estate developers who need funding for projects. In exchange for their investments, the foreign nationals are eligible for permanent residency. The program, called the EB-5 visa program, was created by the Immigration Act of 1990 as a way to support economic development and create jobs. (Read more)
EB5Projects.COM • 2018
Prominent Rock Island businessman sued over federal visa program
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AU G U S T 2018
Grassley urges reform of EB-5 program
U.S. Sen. Charles Grassley, R-Iowa, has been critical of the EB-5 program in its current form and has called for the elimination of loop holes and potential for graft. “While I couldn’t comment on any specific ongoing cases or litigation, I can give my perspective on the EB-5 program and my experience doing oversight of the program for several years,” Grassley said in a statement to the Times. “Congress created the investor visa program in 1990 to stimulate our economy through job creation and capital investment,” he said. (Read more)
Lawyer: Ex-Jay Peak owner penned selfserving letter before fraudulent sale An attorney pressing a lawsuit against a Canadian company that formerly owned Jay Peak says a document the firm claims exonerates them in the alleged fraudulent sale of the resort a decade ago is nothing more than a “protect our ass” letter. (Read more) Related Story: Towns value Quiros’ properties well below state’s $2M settlement figure
EB5Projects.COM • 2018
New Renderings Revealed For the XI As First Tower Tops Out At 76 Eleventh Avenue in Chelsea
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The newest Bjarke Ingels Group-designed project has now partially topped out. The taller 35-story component of the XI, at 76 Eleventh Avenue in Chelsea, has reached this milestone when just seven months ago, it was merely two stories high. With only a few months in between YIMBY’s visits, the enormous scale of the new building is quite shocking, as it rose incredibly quickly. The theatrics nature of the twisting concrete sculpture certainly catches the attention of visitors from the High Line park, where many tourists are already snapping photographs. HFZ Capital is responsible for the development. (Read more)
AU G U S T 2018
Investors and state square off over EB-5 lawsuit
Attorney Russell Barr speaks at a news conference in October. He has sued former state officials and the Vermont EB-5 Regional Center, alleging fraud. A group of investors says the federal government’s shutdown of the Vermont EB-5 Regional Center rejuvenates their case against the state. The U.S. Citizenship and Immigration Service determined last month that the center must be closed. (Read more) Related Story: A paltry payment for a massive fraud
Sweet Street gets a piece of Interstate pie Reading-based Sweet Street Desserts has partnered with Interstate Hotels & Resorts to launch a pie program.
Arlington, Va.- based Interstate’s pie program is planned to last until Dec. 31, the company said in a news release. (Read more)
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AU G U S T 2018
Cleveland International Fund navigates uncertain future A Cleveland private equity fund that has raised $240 million to support local building projects is retooling.
The federal government is having second thoughts about its EB-5 visa program, which rewarded wealthy international investors seeking to emigrate to the United States. As a result, the Cleveland International Fund (CIF), which has used the EB-5 program to raise money that was invested in projects including the redevelopment of Cleveland’s Flats East Bank and in University Hospitals Health System’s expansion, has seen the flow of interested investors slow down. (Read more)
RC Designation and Terminations, SEC (Palm House), RC List Updates
USCIS has now posted notices for regional centers terminated through March 2018, and I’ve added them to my termination log. Now we know the reasons behind about two thirds of the 250 regional center terminations to date. USCIS has framed its activity in terminating regional centers as an integrity measure, but in fact only 11% of terminations so far have been due to integrity problems. (Read more)
EB5Projects.COM • 2018
EB-5 Investors Bilked Of $21M in Fla. Hotel Scam, SEC Says
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Two people and their related business entities misappropriated approximately $21 million from foreign investors who sought to obtain green cards through the EB-5 visa program, using cash meant for a hotel project on personal expenses such as payments toward a mansion and a yacht, the U.S. Securities and Exchange Commission alleged in Florida federal court Friday.
Joseph J. Walsh Sr. and Robert V. Matthews defrauded the investors and violated federal securities laws by collecting nearly $44 million purportedly for the acquisition, development and operation. (Read more)
AU G U S T 2018
Miller Mayer’s Steve Yale-Loehr Quoted Regarding EB-5 Program and OPT Miller Mayer immigration attorney Steve Yale-Loehr was quoted recently by various media outlets: On the EB-5 program: Pacific Standard: Amid Immigration Uproar, Trump Keeps Mum on the EB-5 Immigrant Investor Program (Read more)
Immigration Rises 27% If Families Aren’t Counted Against Green Card Limit
As I reported last week, a new lawsuit seeks to stop the government’s illegal practice of counting spouses and minor children of EB-5 investors against the green card limits. I submitted an expert affidavit in the case explaining how the policy has affected the backlog for EB-5 investors, but as Ira Kurzban, the lead attorney on the case, noted in his interview with Stuart Anderson today, the lawsuit could set a precedent that would lead to the exemption of spouses and minor children of other legal immigrants because the same statute governing the policy toward dependents also applies to other legal immigration categories. (Read more)
Immigrants wave American flags at a naturalization ceremony on July 25, 2018, in Los Angeles. A new lawsuit could make it easier for legal immigrants by not counting their spouses and children toward the “EB-5” (and possibly other) annual immigration limits.
It can take forever to get a green card. The National Foundation for American Policy estimates wait times for permanent residence in some family and employment categories can range from decades to beyond the lifetime of a normal human being. What if a new lawsuit changed that? (Read more)
EB5Projects.COM • 2018
New Lawsuit Could Solve America’s Green Card Shortage
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Project Updates
AU G U S T 2018
Residences at Dania Pointe Construction Update (July 2018) Construction of the overall Dania Pointe project rumbles on! The first tenants of the Phase I retail have taken occupancy and begun to open for business, and KIMCO has broken ground on Phase II of the retail.
The Residences at Dania Pointe (project site outlined in orange) is expected to break ground in late September. (Read more)
Open just a few months, Farms & Market in Everett to close EB5Projects.COM • 2018
The artisan grocery in the Grand Avenue Marketplace development is expected to close Sept. 14.
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Susan Bradley has been shopping at the Farms & Market store on Grand Avenue since it opened in March. (Read more)
AU G U S T 2018
Miami Lender Issues $15M Loan for Planned Hilton Triptych Hotel
Much of the loan was used for a partner buyout, and part keeps the Midtown Miami hotel on track before construction. HES Group had two needs: refinance an existing loan and rearrange its partnership arrangement to drop one partner and bring in another. (Read more) Related Story: HES Group buys out partner on Triptych project in Midtown Miami
Staybridge Suites Opens Miami Hotel The 153-key hotel is less than a mile from Miami International Airport and provides convenient access to several other major transportation options. InterContinental Hotels Group has opened Staybridge Suites Miami International Airport, a 153-key hotel in Miami. Grapeland Hospitality Development owns the property, while Buffalo Lodging Associates manages it. (Read more)
UIP Secures Financing to Move Forward On $118M Southwest D.C. Project
The D.C.-based developer plans to build a 315-unit apartment building next to the Capitol Park Tower building it acquired in 2013 at 301 G St. SW. (Read more)
EB5Projects.COM • 2018
Urban Investment Partners has just finalized a complex financing deal allowing it to move forward on a $118M project in Southwest D.C., the largest single transaction in the company’s history.
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Vets group sues Trump administration to end ‘Mar-A-Lago Council’ influence on VA Following the launch of an investigation by Congressional Democrats into cronyism at the agency, the lawsuit asks the court to block the trio who reportedly influenced the agency’s Cerner EHR contract and other policies.
Veterans’ advocacy group VoteVets and Democracy Forward filed a lawsuit against the U.S. Department of Veterans Affairs on Friday, to stop the influence of three friends of President Donald Trump from further influencing decisions at the agency. (Read more)
Boston Four Seasons is now the city’s third-tallest building
EB5Projects.COM • 2018
The tower is being built by Suffolk Construction and is anchored 165 feet deep into bedrock.
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The developer behind a new Four Seasons hotel and residential unit has called it “the finest and most architecturally-significant skyscraper ever built in Boston. (Read more)
AU G U S T 2018
Snowmaking Upgrades Considered For Burke Mountain in charge of the resort.
Michael Goldberg – appointed the federal receiver of Burke Mountain, Jay Peak and other assets of businessman and former owner Ariel Quiros in April 2016 – said more jobs must be created for EB-5 investors in the Burke hotel project, and the snowmaking expansion would create construction jobs – and improve the economic prospects for Burke Mountain. (Read more) Related Stories: • Burke Resort Needs More Jobs Prior To Sale; Jay Peak Should Sell By Next Summer Burke Mountain may see its snowmaking equipment • Receiver plans to sell Jay Peak by next summer, bolstered in a move planned by the federal receiver hits brake on Burke sale
Bankruptcy court approves purchase of stalled Las Olas hotel project Magna Hospitality Group will acquire the Las Olas Ocean Resort in Fort Lauderdale through bankruptcy. Rhode Island-based Magna Hospitality Group obtained court approval to acquire the stalled Las Olas Ocean Resort project in Fort Lauderdale beach and plans to resume construction. U.S. Bankruptcy Judge Raymond B. Ray approved the $39.1 million sale to MHF Properties VI LLC, an affiliate of Magna Hospitality, on Friday. (Read more) Related Stories: • Half-Built Fla. Resort’s $39M Sale Gets Court Approval • Stalking horse bidder to buy planned Fort Lauderdale Beach hotel
Rhode Island-based hospitality company paying $39.1M for the unfinished 12-story, 136-room hotel A U.S. Bankruptcy Court just approved the sale of the unfinished 550 Seabreeze Boulevard hotel in Fort Lauderdale Beach to a subsidiary of Magna Hospitality Group for $39.1 million. (Read more)
EB5Projects.COM • 2018
Bankruptcy court finally approves sale of Fort Lauderdale hotel project
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AU G U S T 2018
Florida’s Waterline Marina Resort & Beach Club appoints new executive team Waterline Marina Resort & Beach Club, a full-service boutique waterfront hotel on Anna Maria Island, announced three new additions to the hotel’s executive team: Christopher Hunter, GM; Noland Dunnan, food and beverage manager; and Vincent Isbell, director of engineering. (Read more)
‘Bo knows’ Pork & Mindy’s Bo Jackson knows Pork & Mindy’s. Jackson, known as one of the world’s greatest athletes and also star of a Nike ad campaign in the late ‘80s and early ‘90s centered around “Bo Knows,” is also an avid cook and food connoisseur, and is now an equity partner of Pork & Mindy’s, according to a company press release.
“I am thrilled to work with Chef Jeff Mauro, Kevin Corsello and their entire team. In order to have a solid game plan, you must have a championship-calibre team,” Vincent “Bo” Jackson, CEO of VEJ Holdings LLC, said in the release. (Read more)
Midtown Equities to join Battery Maritime Building hotel project
EB5Projects.COM • 2018
Midtown Equities plans to take a roughly 30% equity stake in the Battery Maritime Building’s unfinished conversion to a hotel, city documents show. The proposed cash infusion is expected to put construction back on track in the fall and could result in the completion of the beleaguered project some time in 2020—more than a decade after it was first approved. (Read more)
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Related Stories: • Stymied Battery Maritime Building redevelopment gets needed financial boost • Battery Maritime Building’s hotelrestaurant conversion is back on track
AU G U S T 2018
Jay Peak Receiver Settles Tax Dispute with Vermont Town
A Florida federal court has approved a settlement reached between the court-appointed receiver for the failed Jay Peak EB-5 project and the town of Jay, Vermont, on interest and penalties stemming from $2 million in property taxes paid late to the town.
The tax dispute arose from several projects that were part of a $350 million investment fraud scheme allegedly orchestrated by Miami-based businessman Ariel Quiros, who owned the Jay Peak ski resort in Vermont. (Read more)
The world’s largest ice-skating center could be coming to the Bronx After six years the development duo behind the Kingsbridge National Ice Center in the Bronx have finally secured the money needed for phase one of construction.
Plans are underway for the 750,000-square-foot Kingsbridge Armory in the Bronx to become the world’s largest ice-skating complex, according to its developers. (Read more)
A woman who said her family has lived in Richmond for seven generations asked the Planning Board to restrict development at the Preserve at Boulder Hills, an elite sporting club that wants to expand by about 750 acres and add more housing and resort amenities.
Referring to the movie “It’s a Wonderful Life,” Marsha Rekowski, of Kenyon Hill Trail, asked the board to protect Richmond from becoming a Pottersville. “We want to keep it Bedford Falls,” she said, her voice quivering at times. (Read more)
EB5Projects.COM • 2018
Richmond residents voice objections to planned expansion of sportsmen’s resort
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First look inside the 44-story 414 Light Street apartment tower
The haute, $160 million-plus 414 Light Street tower The lobby of the 44-story tower is tinged in gold made its official debut Tuesday, bringing a little bit of with modern seating in tasteful shades of taupe, Los Angeles to Baltimore. red and blue. One of several statues of the Buddha is prominently displayed near the front door to summon a sense of peace and harmony, said developer and owner Stephen M. Gorn, CEO of Questar Properties. (Read more)
One year in, Brooklyn Heights Library tower almost a third of final height
It’s exactly one year since construction began at 280 Cadman Plaza West, the redevelopment of the site of the Brooklyn Heights branch of the Brooklyn Public Library (BPL). This week, crews are pouring concrete to form the 11th floor and the mezzanine of the “C” section. (Read more)
Palm House Mystery Deepens
EB5Projects.COM • 2018
Those following the Palm Beach drama of Palm House Hotel would now be in a state of total confusion.
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After the FBI made a very public arrest of Robert Matthews, he was slapped with charges that he masterminded a scheme to defraud EB5 investors of $50m. At the time Joe Walsh boasted in a press release (Read more) Related Stories: • SEC Charges South Florida Individuals and Entities in Eb-5 Investment Scheme • SEC accuses Palm Beach developer, partner of misusing millions in island hotel project
AU G U S T 2018
Ecco on Orange Construction Update (July 2018) Construction of Ecco on Orange (an investment of Atlantic American Fortune Fund II) is moving along quickly. The structured parking garage is now erected and installation of MEPs (Mechanical, Electrical and Plumbing) is now in progress.
Stairwells #2 and #3 are installed and poured and Elevator Shaft #2 is complete. Stairwells #1 and #4 and Elevator #4 are near completion. (Read more)
Boston Properties lends $80M on 3 Hudson Boulevard project REIT entered JV with Joe Moinain to develop 2M sf tower Boston Properties is both lender and developer on the Hudson Yards office tower it’s codeveloping with Joseph Moinian. (Read more)
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EB5Projects.COM • 2018
SEPTEMBER 2018 Posts and Project Updates
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S E P T E M B E R 2018
Candidate Willhoit on EB-5 scandal
My name is Janssen Willhoit, and I am a candidate for Vermont attorney general.
Related Stories: • Transparency, justice still needed in EB-5 fraud • EB-5 investors keep alive bid to intervene in case against Quiros, Stenger
EB5Projects.COM • 2018
The values that most inspired me to run for the chief law enforcement office in Vermont are transparency and equal justice under the law. The issue that most motivated me to run is the EB-5 fraud scandal at Jay Peak and the inexcusable coverup that followed by Vermont-elected officials and bureaucrats. (Read more)
• EB-5 Director: Audits of Jay Peak Discouraged • Governor’s office, agency attorneys dispute release of EB-5 records • SEC Fines Ex-Raymond James Branch Manager for Role in EB-5 Fraud: Enforcement • Quiros’ broker reaches $80K settlement in EB-5 fraud case • Vermont commerce agency rebuffs federal shutdown of EB-5 center • State appeals EB-5 Regional Center notice of termination by USCIS • How Transparent Are EB-5 Project Managers?
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S E P T E M B E R 2018
AD1 scores construction loan for Dania Beach Hilton AD1 Global Hospitality just scored a $13.7 million construction loan for a Tru by Hilton hotel in Dania Beach. (Read more)
CN Global Partners is thrilled to partner with investUS (Regional Center) & HRV Hotel Partners with its 5 star Bishop’s Lodge EB-5 project. CN Global Partners is thrilled to partner with investUS (Regional Center) & HRV Hotel Partners with its 5 star Bishop’s Lodge EB-5 project. This iconic 1920s resort situated on 317 acres in the foothills of the Sangre de Cristo range of the Rocky Mountains is being re-envisioned as one of the top resorts in the nation. Bishop’s Lodge is currently in finishing phases and includes 120 new and renovated guest rooms and suites (Read more)
EB5Projects.COM • 2018
USCIS Proposes Increase to Premium Processing Fee
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On Aug. 31, 2018, the Department of Homeland Security (DHS) proposed a final rule in the Federal Register to increase the premium processing fee for certain visa petitions to $1,410, effective Oct. 1, 2018. Premium processing, a service offered for certain petitions, requires U.S. Citizenship and Immigration Services (USCIS) to adjudicate a petition (i.e., approve, deny, or send a request for evidence) within 15 calendar days. (Read more)
S E P T E M B E R 2018
This Week in Securities Litigation In a holiday shortened week the Commission continued to award whistleblowers, paying a total of $54 million to two individuals. One of the awards was for $39 million, the second largest in the history of the program.
The agency also continued to focus on retail investors. For example, an action was brought against a large investment adviser for false advertising – the materials for a new product failed to state that the results were based at least in part from back-testing. (Read more)
American Lending Center holds EB-5 immigration investment seminars across Taiwan
American Lending Center (ALC) — a leading EB-5 regional center and subsidiary of Regional Centers Holding Group—announced the successful completion of a series of seminars across Taiwan to inform potential investors about the EB-5 immigration and investment process in the United States. Held Sept. 1-7 in the cities of Taipei, Hsinchu, Taichung, Tainan and Kaohsiung, the seminars informed interested parties about ALC’s usage of the EB-5. (Read more)
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Newport Beach attorney agrees to pay $2.3 million as visa scam case widens
A federal judge ordered a Newport Beach lawyer to pay $2.3 million in restitution and fines stemming from an alleged real estate and visa fraud case on the very day that his business partner got charged with the same crimes, court documents show. Both men are accused of scamming more than 100 Chinese investors out of $9.5 million, part of the $72 million they put up in hopes of earning U.S. residency under the controversial EB-5 program, according to court documents filed Thursday, Sept. 27. (Read more)
I-924 exemplar appeal sustained (reserves, material change) I read and log all Administrative Appeals Office decisions on EB-5 appeals, in an effort to keep up with EB-5 adjudication trends and be more than just another business plan writer with an English major and MBA. The AAO decisions illuminate and very occasionally question current thinking at USCIS about how to interpret and apply EB-5 requirements in practice. (Read more)
Related Stories: • Preparing to file I-924A Annual Certification • RC program authorization • Washington Update: EB-5 Regional Center Program Reauthorization Extended to December • President Trump Signed Continuing Resolution into Law • It appears like the EB-5 program will be extended to December 7th with no changes as part of the Continuing Resolution bill introduced by the House of Representatives!
EB5Projects.COM • 2018
Stenger backers upset over blown surprise for birthday bash
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That’s the take from attorney as well as his son in response to a story from the news organization published online this weekend about a 70th birthday party planned at Jay Peak for the former resort president who regulators say nearly sent the facility into financial ruin. (Read more)
Related Story: Jay Peak to celebrate Stenger’s 70th birthday
S E P T E M B E R 2018
Millionaires’ visas give the wealthy an unfair fast track to a green card. Let’s get rid of them
Chinese visitors seek information of the U.S. government’s EB-5 visa program in Beijing on May 7, 2017.
EB5Projects.COM • 2018
While the Trump administration has been dramatically limiting the number of immigrant visas the U.S. will issue, it has been quietly accepting more applicants in one particular category than any other administration over the last decade: the EB-5 Regional Center program, reserved for those who can pay up to $1,000,000 for a green card. (Read more)
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SEC Charges Unregistered Sales of Securities Issued Under EB-5 Immigrant Investor Program The Securities and Exchange Commission today announced that an Illinois-based regional center, its CEO, and 37 affiliated limited partnerships have agreed to settle charges related to securities issued under the EB-5 Immigrant Investor Program, which provides foreigners who invest in the U.S. a potential path to becoming a U.S. resident. According to the SEC’s order, from 2011 to 2015, 37 entities affiliated with CMB Export LLC offered EB-5 securities in the form of limited partnership interests without registering them with the SEC. (Read more)
More Harm than Good? Regional Center Terminations Create Issues Growing processing times along with recent transgressions of some regional center operators have forced EB-5 projects and investors to realign themselves with another regional center. This shuffle can create serious problems for the immigrant investor.
To start the EB-5 immigration process, an investor files an I-526 petition. This petition allows the investor to become eligible to obtain a visa or adjust status to become a conditional permanent resident. (Read more)
EB5Projects.COM • 2018
American Lending Center continues to fortify Asian EB-5 market presence with conferences in Vietnam and South Korea
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American Lending Center (ALC), one of the United States’ leading EB-5 regional centers, has continued to build on their established leadership within Asian investor communities with four events in Vietnam and South Korea this September. On September 9th, ALC’s local Ho Chi Minh City office hosted a US Immigration EB-5 Seminar led by Bruce Thompson, the company’s President and a former Region IX Administrator for the U.S. Small Business Administration. (Read more) Related Story: US Department of State Visa Bulletin for October 2018 and its Implications for EB-5 Investors from Vietnam
S E P T E M B E R 2018
Consular Process for EB-5 Investors
In the EB5 Investment immigration category, it is rather common for investors and their families to undergo consular processing outside of the United States rather than adjusting status in the United States. Although the majority of these applicants have gone through a consular processing for different visa types, there are a few specific issues that are particularly vital for EB5 applicants to be aware of. (Read more)
CN Global Partner announces the new BMO Bank Tower EB-5 Milwaukee WI project
CN Global Partner announces the new BMO Bank Tower EB-5 Milwaukee WI project as addition to its portfolio. CN Global’s Curtis Poling toured FirstPathway Partners BMO Bank EB-5 project and observed live construction parking level deck activity at the BMO Harris Bank Tower site on last Tuesday, Sept 4. (Read more)
Ombudsman on new RFE and NOID policy, visa timing, RC list updates
Related Stories: • Week of September 24, 2018 • USCIS Reconsiders EB-5 Geographic Regions • Updates to USCIS Policy Manual on EB-5 Investors: Change of Regional Center Considered a Material Change by USCIS • Maintaining Eligibility for Permanent Residence for EB-5 Investors: Non-immigrant Status
EB5Projects.COM • 2018
Today is the effective date for the new USCIS policy memorandum on issuance of RFEs and NOIDs. Basically, the memo expands an adjudicator’s discretion to simply deny a petition, without first issuing an RFE or NOID to ask questions or request additional evidence. (Read more)
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Why you should invest in the US property market The property market in the United States has endured its ups and downs pretty much like any other country in the world. But there are now many reasons why investing in the American property market is a good thing to do.
For South African property investors, America is an appealing destination as it’s also an English-speaking nation and if you invest in property through an EB-5 investment vehicle you can reap the benefits of having a Green Card too. (Read more)
Two World Trade Center remains unbuilt, stalled by lack of anchor tenant
EB5Projects.COM • 2018
Two World Trade Center, one of the final skyscrapers to fill the hole torn in the Manhattan skyline the morning of Sept. 11, 2001, remains unbuilt and uncertain 17 years after the terrorist attacks. (Read more)
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Mayor ‘not happy’ about Coco Palms
The ongoing melodrama about the future of the former Coco Palms Resort property in Wailua took a new turn last week when Mayor Bernard Carvalho Jr. gave a one-word answer to a question during an interview. (Read more)
S E P T E M B E R 2018
American Lending Center Invests in Niagara Falls Economic Development with Comfort Inn & Suites The Comfort Inn & Suites, funded with key EB-5 investments from American Lending Center (ALC), one of the nation’s leading EB-5 regional centers, has opened in Niagara Falls, NY. The hotel represents the third property recently funded by ALC in Niagara Falls’ hospitality industry, following the local La Quinta Inn and Microtel Inn & Suites, which opened in 2016 and 2017 respectively. (Read more)
WA Updates, Visa Numbers, Ombudsman, RC List Updates August passed with no final rule for EB-5 regulations. OMB has not even received the regulations for review. USCIS Director Cissna told Congress in June that he thought it would be tough to finalize the regs before Sept 30, 2018, and I don’t expect any action soon. The Regional Center program is currently authorized through 9/30/2018, pursuant to Consolidated Appropriations Act, 2018, Division M—Extensions, Title II—Immigration Extensions (PDF p. 702). (Read more)
In the latest sign of Capitol Hill dysfunction, Congress will likely grant yet another reprieve to its problem-plagued EB-5 foreign investorvisa program. Set to expire Sept. 30, the EB-5 “pilot” is a toxic tin can that has been kicked down the road repeatedly over its troubled 28-year history. Attempts at reform have been few and far between. (Read more)
EB5Projects.COM • 2018
Lawsuits Threaten to Sink Cash-for-Visas Program
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Project Updates
S E P T E M B E R 2018
DUMBO Will Get a Brooklyn Public Library Branch In 2020
With all the development happening in DUMBO over the years, it’s surprising that the waterfront neighbourhood does not have its own public library branch. That will soon change as the Brooklyn Public Library (BPL) announced on Thursday that it will debut a branch at 135 Plymouth Street in 2020. (Read more) Related Story: Brooklyn Heights Public Library and Condo Superstructure Climbs past One-Third Mark
EB5Projects.COM • 2018
IHG Introduces the Brand New Staybridge Suites Miami International Airport
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With a convenient location and great amenities Staybridge Suites Miami International Airport, IHG brings Miami a brand new six story hotel located at 3651 NW 25th Street. Recently opened, the hotel offers a combination of deluxe studio, one-bedroom and twobedroom accommodations, featuring fully equipped kitchens with separate living and sleeping areas. Some suites feature views over Florida’s Palmer Lake and Miami River. (Read more)
S E P T E M B E R 2018
EB-5 investors allege fraud in Royal Palm Beach office project Yet another group of EB-5 investors is alleging it was defrauded on a South Florida EB-5 project.
Thirteen Chinese investors are suing the South Atlantic Regional Center, along with its founder, Joseph Walsh, and affiliated companies over a $6.5 million investment in an office complex in Royal Palm Beach at 9200 Belvedere Road, according to the Daily Business Review. (Read more) Related Stories: • Businessman demands repayment of money from Palm House developer, wife • Chinese EB-5 Investors in Royal Palm Beach Office Claim $6.5M Fraud on Green Cards • EB-5 Investments in Palm Beach Hotel Paid for Home, Yacht, Credit Cards, Indictment Says • Palm Beach developer, wife charged with tax evasion in Palm House-related case • Indictment: Couple used investor money to buy yacht, Washington Depot homes • Charge of tax evasion added to 20-count indictment of Palm Beach developer
Long-awaited Kingsbridge National Ice Center nears deal
The Kingsbridge National Ice Center, a project more than six years in the making, looks to be nearly ready to break ground as developer Kevin Parker closes in on the project’s first phase of financing. Located in the northwest Bronx, the Kingsbridge Armory has been vacant since 1996, and plans to repurpose the historic fortress into a 750,000-square-foot ice sports complex were first announced by then-Mayor Michael Bloomberg in 2013. (Read more)
The End of the Line for Giant Ferris wheel On Staten Island? The city says even that bond sale wouldn’t be enough to close the huge funding gap for the project. (Read more) Related Stories: • Lloyd Goldman, Jeffrey Feil threaten to pull the plug on the New York Wheel
• NY Wheel: Without the city, ‘it’s not going to happen’ • Despite Jan. extension granted, NY Wheel parts could be auctioned in Oct. • Denial of NY Wheel funding has Chinese investors’ families reeling • NY Wheel applies for an extension to get the project back on track • New York Wheel deadline is Wednesday. What happens next?
EB5Projects.COM • 2018
The investors behind the wheel tell the Wall Street Journal they’re about to pull the plug on the partially-completed project because the city refuses to support it with a $380 million bond sale.
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Cal State LA BioSpace Startups in Pasadena Selected for LA BioMed Innovation Showcase
Two Pasadena bioscience startup ventures launched with support from Cal State LA BioSpace participated in the LA BioMed Innovation Showcase in September. The showcase was a regional forum for academic institutions to highlight new startups and early-stage technologies. (Read more) Related Story: LA BioMed Hosts Biotech Conference on Biomedical Innovation
Ecco on Orange Construction Update (September 2018)
EB5Projects.COM • 2018
Vertical construction of the residential units at Ecco on Orange has started. Despite wet weather conditions this time of year in Florida, framing has been moving steadily and is on schedule. Ecco on Orange, one of four portfolio assets in Atlantic American Fortune Fund II (AAFF II) will be a 300-unit multifamily residential apartment community located two miles south of downtown Orlando. The property will feature a rooftop pool, fitness center and amenity deck, expansive multi-level clubhouse, cyber cafe, virtual golf and resident lounge. (Read more)
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125 Greenwich supertall closes on $473M debt package
After marathon negotiations that began more than two years ago, the developers of the supertall condominium at 125 Greenwich Street have closed on a $473 million financing package with four Asian banks, The Real Deal has learned. The deal answers questions about the future of what is perhaps Downtown’s most visible residential project. (Read more)
Chinese investor sells stake in Vista Tower to shopping mall developer
After marketing its majority stake in Vista Tower for $900 million back in January, Chinese developer Dalian Wanda Group has entered a deal to sell its 60 percent share of the under-construction supertall skyscraper to shopping mall builder Triple Five Group. The sale comes as Chinese government regulators continue to crackdown on offshore spending by the country’s largest conglomerates—Wanda included. (Read more) Related Story: Before it becomes Chicago’s third-tallest building, Vista Tower could have owner No. 2
Meres Crossing Construction Update
Site clearing and grading has begun at Meres Crossing, a 236-unit apartment community in Tarpon Springs, Florida. An investment of Atlantic American Fortune Fund II (AAFF II), Meres Crossing will offer its residents an incredible amenity package including a clubhouse and resort style pool, fitness center and a bicycle storage/repair room. (Read more)
A lawsuit by Chinese investors who accused former Virginia Gov. Terry McAuliffe and Anthony Rodham, the brother of Hillary Clinton, of fraud has been dismissed by a federal judge. The investors, who sought green cards through an investment-based visa program, couldn’t show that McAuliffe and Rodham committed any fraud or that the two breached a fiduciary duty to them, Judge Claude M. Hilton of the U.S. District Court for the Eastern District of Virginia said Sept. 5. (Read more) Related Story: Ex-DNC Chair Ducks Visa Scheme Suit by Chinese Investors
EB5Projects.COM • 2018
Chinese Investors’ Case against Governor, Clinton Brother Tossed (1)
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Via Mizner Comes into Focus, Observations on Midtown and the Inspector General Issue
Boca Raton approved Phases 2 and 3 of Via Mizner in December 2015. Tonight, the new version of that project goes before the planning and zoning board—also with some changes to Phase 1. To review, Via Mizner will encompass roughly 8 acres north of Camino Real on Federal Highway, backing up to the golf course of the Boca Raton Resort & Club. (Read more)
James Turrell’s sleek Gramercy Park home returns to market Artist James Turrell’s former home and studio at 26 Gramercy Park South has hit the market for $1.95 million.
That’s less than the $2.1 million the current owners paid for it in 2014, when Turrell sold it to them. Turrell is known for his work with light as well as a large-scale artwork within the extinct Arizona volcano, Roden Crater, which he’s devoted some 40 years to making. (Read more) Related Story: Gramercy Park will get a 19-story condo neighbour
EB5Projects.COM • 2018
Lawyers for bankrupt Lucky Dragon file motion to close hotel
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Several months after its casino building closed, the Lucky Dragon’s hotel tower could soon be shuttered too. Lawyers for the bankrupt Las Vegas resort filed a motion last week seeking approval to close its nine-story hotel building “immediately” and “cease all payments” to employees and vendors, court records show. (Read more) Related Stories: • Foreign investors may lose out on Las Vegas investment • Lucky Dragon Foreign Investors Could Be Out of Luck on Permanent Visas • Visas for Dollars: Backers of Failed Vegas Casino May Lose Both
S E P T E M B E R 2018
DSH Hotel Advisors Arranges Sale of 86Room Microtel Inn & Suites Port Charlotte, Florida for $7,000,000 DSH Hotel Advisors, a national hotel brokerage and advisory firm headquartered in Tampa, Florida – specialized solely in hotels – announced that Dennis Hopper, Managing Principal, closed on Microtel Inn & Suites by Wyndham – Port Charlotte, Florida on September 12th, 2018 for $7,000,000. Mr. Hopper represented the buyer, Maingate East Development, Inc. and the seller, Interdevco, a Miami based investment group. (Read more)
FAA shutdown of runway at Coventry airport restricts flights
Federal authorities have shut down the main runway at the Northeast Kingdom International Airport, substantially restricting commercial traffic, because of safety concerns caused by trees the state of Vermont was supposed to have already removed. The Federal Aviation Administration issued a notice to pilots late Tuesday that runway 36 was closed for landings at speeds greater than 50 knots. (Read more)
Central Park Tower Climbs Past 1,100 Feet as Cladding and Glass Begin to Show EB5Projects.COM • 2018
News about the supertalls rising in the city is pouring in, including 111 West 57th Street’s ascent past the 1,000-foot mark and YIMBY’s exclusive reveal about the possible revival of Foster + Partners’ design at 200 Greenwich Street. For today, we turn back to Midtown with an update for Central Park Tower, the tallest building under construction in the country. Extell Development Company and the Shanghai Municipal Investment Group are responsible for the project. (Read more)
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OCTOBER 2018 Posts and Project Updates
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O C TO B E R 2018
Early Withdrawal of EB-5 Capital with Patrick Hogan
With the ever-increasing visa backlog for certain countries, in particular China, EB-5 investors are unwillingly seeking an early withdrawal from their EB-5 project. But is an early withdrawal allowed from a legal and business perspective? When is the right time for the EB-5 capital be withdrawn from the project? To address this very important and current issue, in this EB-5 episode, which marks the 70th podcast in the EB-5 Investment Voice series - the only Podcast series that focuses on the US immigrant investor visa. (Read more)
PM Update (redemption agreements, debt arrangements)
Related Story: USCIS Updates Policy Manual Regarding Impermissible Debt Arrangements
EB5Projects.COM • 2018
USCIS has updated the USCIS Policy Manual immigrant investor section with a new subsection titled “Redemption Language” that clarifies policy on debt arrangements. This new language follows up on a flurry of denials in 2017/2018 based on suspected debt arrangements, and subsequent successful litigation. I await analysis from experts, but the new Policy Manual language comes close to granting “okay, we were wrong, and you were right. (Read more)
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Quiros, insurer reach settlement ahead of trial in $10M policy dispute
Days before a trial was set to begin, Jay Peak owner Ariel Quiros and his insurance company reached a settlement in a dispute over his claims that the firm should be on the hook to pay his defence expenses up to $10 million as he fights off investor fraud lawsuits. (Read more) Related Stories: • Jay Peak receiver proposes settlement with Quiros as fees top $5 million • Lawsuit filed in EB-5 fraud case at Jay Peak • Scott favors disclosing EB-5 records • Barr wins a round in EB-5 case
Expect More EB-5 Visa Lawsuits With the backlog of Chinese investors waiting for green cards, Emilie Cooper, a partner at law firm Haynes and Boone, and formerly with Kasowitz Benson, says once an easy source of capital, EB-5 visas now face uncertainties.
The EB-5 program was given an extension to Dec. 7 from its original expiration date of Sept. 20, 2018. But that alone is not going to solve some of its thornier issues—especially with Chinese investors. (Read more) Related Story: Another EB-5 Scandal, a Toppled Ferris wheel, and a Visa-Grab Court Case
Donovan, Willhoit spar over EB-5 records, bail reform in attorney general debate EB5Projects.COM • 2018
A debate between the two major party candidates for attorney general Saturday featured the challenger professing his love for the incumbent.
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However, that didn’t stop Republican Janssen Willhoit, a first-time state-wide candidate, from telling his opponent, incumbent Attorney General TJ Donovan, that he should change his stance and release more information about the EB-5 scandal that played out in northern Vermont. (Read more) Related Stories: • Yes, the EB-5 program needs reform, but it’s far too valuable to dismantle • State blocking questioning of top EB-5 officials over role in scandal
O C TO B E R 2018
November 2018 Visa Bulletin Updates For those in the EB-5 category, the priority date remains current for all applicants other than those born in Mainland China and Vietnam, where the cut-off for China advanced to Aug. 15, 2014 and for Vietnam to Feb. 1, 2016.
For those seeking to adjust status, The United States Citizenship and Immigration Service (USCIS) website indicates that the department’s Dates for Filing chart must be used for filing Form I-485. (Read more)
Fraud allegations against Florida developer/political donor with ties to Trump, Kushner EB5Projects.COM • 2018
When Nicholas Mastroianni II appeared on stage at a real estate forum in Shanghai in 2016, the other panellists — including ex-New York governor George Pataki – deferred to him as the expert on the U.S. government’s EB-5 program, which allows foreign investors and their family members to get their green cards, and eventually citizenship, if they invest at least $500,000 in certain U.S.-based projects. (Read more)
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Miami’s condo market of future less about “cycles and roller coaster rides”: TRD panel
Developers Michael Stern, Jules Trump and others say shortage of inventory, tightening credit markets could serve to stabilize market A shortage of developable land and a credit crunch means Miami’s luxury condo market will see significantly fewer new projects break ground next year. (Read more)
USCIS meeting with IIUSA (regs, redeployment, processing times), Analysis of Litigation Thank you USCIS for posting a complete transcript of the USCIS Meeting with IIUSA on October 5, 2018. Such transparency is so helpful. Program integrity suffers from general lack of information, and from the industry’s inclination to promote asymmetry for what little info is given. (Read more)
EB5Projects.COM • 2018
OURS: Amendment W adds needed transparency
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For the second time in three years, South Dakotans will have the chance to vote on a ballot measure that would bring a level of accountability to a Legislature that an apparent majority in the state believes is needed. In 2016, it was Initiated Measure 22 that sought to establish a five-member ethics commission that could investigate corruption in state government. It also sought limits on gifts that lobbyists could bestow on lawmakers. (Read more)
O C TO B E R 2018
SEC Targets Immigration Lawyer in Probe of Alleged $10M Fraud Immigration lawyer and husband made over $10 million in EB-5 commissions, SEC says Pair weren’t registered as brokers, tried to hide evidence, agency says A California immigration lawyer and her husband are at the center of an SEC investigation into an alleged EB-5 visa fraud worth over $10 million. Jean Danhong Chen and her husband, Tony Jianyun Ye, made over $10 million in commissions through unregistered sales of EB-5 securities to clients of Chen’s San Jose law firm, according to an Oct. 18 Securities and Exchange Commission complaint. (Read more) Related Stories: • SEC Charges Bay Area Immigration Lawyer, Firm
with Securities Fraud in Alleged EB-5 Scheme • SEC Charges Lawyer and Her Husband in EB-5 Fraud • SEC charges law firm with EB-5 fraud scheme • Atty Accused of Defaming EB-5 Fund to Chinese Investors
FY17 per-country I-526 data, SEC action (registration)
IIUSA has received another year of per-country data for I-526 filings through the Freedom of Information Act process, and prepared a report for IIUSA members. Being ambivalent about freedom of information, IIUSA has decided to share this much with the public. (Read more) Related Stories: • Pending I-526 by country as of 10/2018 • FY2018 Q3 EB-5 Form Processing Statistics
The Department of Homeland Security is adding even more new immigration regulations to its already lengthy list, with a new focus on immigrant investors, asylum seekers, and agricultural and seasonal guest workers. The fall 2018 regulatory agenda is ambitious—U.S. Citizenship and Immigration Services, the DHS component handling most employment-based visa matters—hasn’t released many regulations under the Trump administration so far. (Read more)
EB5Projects.COM • 2018
Immigration Agenda Focused on Investors, Asylum, Guest workers
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Regulations update (Fall 2018)
The fall 2018 OMB Unified Agenda has been published with updated timetables for two EB-5 regulations in progress, and notice of a third EB-5 regulation to come. RIN1615-AC07 EB-5 Immigrant Investor Program Modernization, with proposed changes to TEAs and the minimum investment amount: (Read more) Related Story: OMB Publishes Fall 2018 Unified Agenda with EB-5 Regulatory Updates
THE STATE OF PLAY IN WASHINGTON – OCTOBER 2018 Mid- term elections draw closer, September 30th Deadline moves to December 7th…
As Immigration falls out of out of the media spotlight, what can we expect?
What else!
Status of the EB-5 Program (Read more) Related Story: EB-5 Engagement 11/19
Gulf investors urged to pursue U.S. EB-5 Investor Program and help create employment in America
EB5Projects.COM • 2018
The United States Congress has recently passed a reauthorization of Employment-Based (EB5) Investor Immigration Program recently, that extend the popular immigration through investment program and help the US create more jobs, a top official said.
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“The US Congress passed a reauthorization of the EB-5 program until December this year that will help the residents of the UAE and the Gulf to avail Green Cards without the delays facing investors from other countries (Read more) Related Stories: • EB-5 is alive, but for developers and investors future remains uncertain • The most scandal-plagued US visa program lives on because Congress is too busy to fix it
• Might This Be ‘Last Call’ for $500,000 EB-5?
O C TO B E R 2018
Northern Virginia Immigration Attorney Educates on the EB-5 Visa Program A Northern Virginia immigration attorney at Johnson specific areas of the U.S. & Masumi released a blog post educating readers (Read more) on the EB-5 visa program, how it differs from similar Related Stories: visas, and who may be an ideal candidate for the visa. • Visa program for wealthy reauthorized: The EB-5 visa is designed to allow investors to What to know immigrate to the U.S. for the purpose of creating jobs • ‘People applying for and investing capital into troubled businesses. There EB-5 visa to circumvent H1-B’ are two programs available: the basic program, which • EB-5 Visa Common Questions - English + applies to most qualifying businesses nationally, and Vietnamese the Regional Center Pilot Program, which focuses on
Clark county man, Isaac Benjamin Voss sentenced to 37 months in prison for fraud scheme involving false clean energy company Isaac Benjamin Voss, 41, of Clark County, Washington, was sentenced today to 37 months in prison and three years’ supervised release for defrauding domestic and foreign investors who believed they were investing in a viable clean energy company.
According to court documents, in 2007, Voss made a deal with a Canadian scientist and entrepreneur to raise funds to support the development of a technology that would derive electricity and petroleum-equivalent fuels from any carbon bearing material. (Read more)
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Bollen says in newly public EB-5 deposition that Janklow wanted him in Pierre
South Dakota Gov. Bill Janklow is shown Oct. 2, 1983, at his desk in Pierre. According to a deposition, Janklow reached out to Joop Bollen and wanted him to move to Pierre. A new public document in a lawsuit indicates that the relationship between state government and Joop Bollen — the central figure in South Dakota’s fatal and convoluted EB-5 scandal (Read more)
International Students Can Use US Investor Visa to Gain Green Card
EB5Projects.COM • 2018
International students attend sessions about life in the U.S., from health insurance policies to how Americans greet each other, during an orientation week.
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A lesser-known immigration visa offers international students a path to U.S. colleges and universities — and a green card — but the price is affordable for only a few. (Read more)
O C TO B E R 2018
Work continues on delayed conversion of former Pabst building to lofts, with March completion set Work is continuing on the conversion of a former Pabst Brewing Co. building in Milwaukee into loft apartments, with the project now set for completion by March. The Brewery Lofts are being created at the former Pabst malt house, 1009 W. Juneau Ave. The $41 million development will feature 118 high-end apartments on seven floors when completed. (Read more)
More South Africans seeking US Green Card through EB-5 investment than ever before
With the South African economy entering its first recession since 2009 and the value of the Rand falling 20% in 2018, more and more South Africans are seeking alternate permanent residency in foreign countries. Industry data reveals
that demand for a US Green Card through an EB-5 investment of $500,000 is the highest it has ever been, with a 486% increase in the number of EB-5 petitions filed by South Africans over the past three years. This huge growth in demand is the highest among European, Middle East, and African countries. (Read more)
CN Global Partners is thrilled to partner with invest US (Regional Center) & HRV Hotel Partners with its 5-star Bishop’s Lodge EB-5 project. EB5Projects.COM • 2018
CN Global Partners is thrilled to partner with invest US (Regional Center) & HRV Hotel Partners with its 5-star Bishop’s Lodge EB-5 project. This iconic 1920s resort situated on 317 acres in the foothills of the Sangre de Cristo range of the Rocky Mountains is being re-envisioned as one of the top resorts in the nation. Bishop’s Lodge is currently in finishing phases and includes 120 new and renovated guest rooms and suites. With 317 acres of discovery, nestled within the Rocky Mountains and nearby Santa Fe New Mexico and nearby to the oldest state capital in America… (Read more)
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Residences at Dania Pointe Construction Update (October 2018) As of October 31, 2018, test pile operations are complete, and the geotechnical engineer confirmed that the auger cast pile submittals were approved. Workers are on the site now preparing the pile cages and will begin drilling on November 1st. Once all piles have been installed, foundations will be poured starting in early December, with vertical construction expected in January.
The Residences at Dania Pointe is the first phase of multifamily residential apartment within Dania Pointe, Broward County’s premiere “work, shop, play” development. (Read more)
EB5Projects.COM • 2018
Dunkin’ Donuts to open state’s first ‘Next Generation’ store in Chandler
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Dunkin’ Donuts may have first opened in 1950, but you wouldn’t know it by the look of its new stores.
Arizona’s first “Next Generation” Dunkin’ Donuts opened in Chandler on Thursday, near German and Gilbert roads. The modern store includes a drive-thru lane exclusively for orders made through a mobile app and a tap system for cold beverages like iced tea and cold-brew coffee. (Read more)
O C TO B E R 2018
No Bids for Shuttered Asian-Themed Las Vegas Casino-Hotel
No one has bid at a foreclosure auction for the Lucky Three individuals were pre-qualified before the Dragon casino-hotel off the Las Vegas Strip. auction, but they did not offer any bids. (Read more) The opening bid for Tuesday’s auction was $35 million.
Related Story: Lucky Dragon hotel sold for $35M at auction
What happens when an EB-5 project fails? In 2012, a trio of developers drew up plans to build a 12-story InterContinental hotel in Fort Lauderdale Beach. The Las Olas Ocean Resort would include a 12,000-square-foot restaurant from the management company behind Senior Frog’s. To fund the development, the ownership group tapped Bancorp Bank and later (Read more)
Oceanfront hotel in Hollywood that began as a condo project welcomes its first guests The 307-suite Costa Hollywood Beach Resort opened Oct. 19, about five years after construction started, with introductory rates starting at $179 per night. A 307-key oceanfront hotel in Hollywood that began as a condo development has started welcoming its first guests. (Read more)
Federal authorities have terminated the Great Ocean EB-5 Regional Center, which Capt. Huy Ying Chen started in 2013. The termination of this ability to participate in the immigrant investor program came more than a year and a half after a Seattle judge ruled Chen had violated the state Securities Act by falsely telling an investor he had secured a long-term lease for the business with the Port of Longview. (Read more)
EB5Projects.COM • 2018
Feds terminate Capt. Chen’s EB-5 center on Columbia River
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Mount Snow prepares for record-breaking opening date
With colder than normal temperatures, ski areas are getting a jump start on the upcoming season. At Mount Snow, not only do they have Mother Nature to thank, but a huge investment from the EB-5 immigrant investor visa program. Blue skies, low humidity and 30-degree temperatures are the perfect combination for massive amounts of snow making. And it comes just in time for Saturday’s opening day. (Read more)
The power to forge a new future
EB5Projects.COM • 2018
For more than 100 years, Bethlehem Steel was a core part of Maryland’s identity, until its Baltimore mill closed in 2012. Today, Tradepoint Atlantic is transforming the site into a thriving port that will have a $3 billion economic impact.
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With help from Bank of America Merrill Lynch, Tradepoint Atlantic has built a modern cargo hub that allows trains and ships to move goods worldwide. (Read more)
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New York Wheel developers abandon plans for Staten Island attraction A giant observation wheel planned for Staten Island will no longer get a chance to spin, since its developers pulled the project after failing to garner support from the city.
The New York Wheel team announced “with great disappointment” that the huge structure, which was hoped to be a major tourist draw for the borough, will not be completed. (Read more) Related Stories: • Here’s what the death of the New York Wheel could mean for Staten Island real estate • New York’s Ambitious, EB-5 Funded Ferris wheel Project Is Dead • CanAm Enterprises Statement on New York Wheel Suspension
• New York Wheel project spins out, developers call it quits • With NY Wheel dead, what will happen to EB-5 investors?
Staybridge Suites hotel in Lafayette to be auctioned by court order
Staybridge Suites, at 129 East Kaliste Saloom, is pictured on Thursday, October 18, 2018, in Lafayette. The Staybridge Suites hotel on Kaliste Saloom Road is going up for auction by court order after the owners failed to make payments on a multimillion-dollar mortgage. The owners, Lafayette attorneys Rickey Miniex and Clyde Simien, started construction on a 220-unit multifamily housing complex as the hotel mortgage went into default, according to public records. (Read more) Related Story: Event showcases new Staybridge Suites hotel in Florence
Owner David Hart says he plans to reopen with a new operator.
Hotel Astor is being sued by its ground lessor for allegedly defaulting on its lease and faces separate lawsuits from its former law firm and ex-employees. In total it allegedly owes more than $300,000 in unpaid bills, court records show. (Read more)
EB5Projects.COM • 2018
Hotel Astor shuts down after allegedly owing more than $300k
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The Latest EB-5 Dilemma The Tram Haus Lodge at Jay Peak was one project invested in by foreign investors through the EB-5 program. The state-run Regional Center that oversaw EB-5 projects in Vermont was terminated by the federal government. The EB-5 scandal in the Northeast Kingdom has posed an interesting dilemma. As Vermonters, we all care about the transparent and just administration of business conducted by our government officials on our behalf. (Read more)
AAFF II - Meres Crossing Construction Update (October 2018) As of October 2018, de-watering of the site has completed and clearing, and grading is underway at Meres Crossing. Meres Crossing (a portfolio project of Atlantic American Fortune Fund II, LP) will be a 236-unit garden style apartment community to be located in Tarpon Springs, Florida. Meres Crossing will offer one-, two- and three-bedroom units, priced in line with the current rental rates of the market area. The Project’s apartment units will be housed in five, three- and four-story garden style buildings. (Read more)
EB5Projects.COM • 2018
Boca Downtown Still in Growth Mode with Via Mizner and Alina
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Boca Raton has waved the start flag on the downtown Mandarin Hotel and accompanying condo. On Monday, the city council acting as the community redevelopment agency approved the updated plan for Phases 2 and 3 of Via Mizner. Penn-Florida completed Phase 1—the 366-unit rental apartment building— about two years ago. (Read more)
O C TO B E R 2018
Entering Palm Beach season, three federal courts wrestling with Palm House cases The Palm House hotel-condominium project has for four years stood unfinished and padlocked in the ocean block of Royal Poinciana Way in Palm Beach. But behind the scenes, three federal courts lately have been overseeing proceedings related to the project. Those include a pending criminal trial of its developer, Palm Beacher Robert V. Matthews, along with his wife and a Palm Beach real estate attorney. (Read more) Related Stories: • Developer Tied To Kushner, Trump Sued For Alleged $99.5M EB-5 Fraud • Chinese EB-5 investors sue Harbourside Place developer, alleging fraud • EB-5 investors sue Florida developer for alleged $99.5M fraud • Palm Beach Condo-Hotel Tied to $40 Million EB-5
Fraud, Conn. Grand Jury Indictment, Heads to Auction • Chinese investors say Harbourside Place developer defrauded them • Related Companies affiliate bids $32M for embattled Palm House Hotel
Clarion pays $282M for Bryant Park office tower
Clarion Partners has purchased 114 West 41st Street in Bryant Park for $282 million. Newmark Knight Frank (NKF) announced it brokered the sale on behalf of Blackstone and EQ Office. NKF president James Kuhn, vice chairman Edward Maher, senior managing director David Colen and managing director James Tribble of the firm’s New York Capital Markets team oversaw the transaction of the 22-story office/retail asset. (Read more)
Long associated with Wall Street and World Trade, the densely packed southern tip of Manhattan is now becoming a sought-after place to live. Here are eight towers under construction or recently completed in FiDi that offer high-rise living Downtown.
British architect David Adjaye’s first skyscraper in New York is rising towards its 66-storey height in the heart of FiDi. The 244 luxury condos at 130 William will boast views of the city through arch-shaped windows, which will be inverted and doubled in width towards the top. (Read more)
EB5Projects.COM • 2018
Residential skyscrapers on the rise in Manhattan’s Financial District
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The Ultimate New Year’s Eve Experience Returns To the Knickerbocker Hotel
The ultimate New Year’s Eve experience returns to The Knickerbocker Hotel with an extravagant celebration and the closest live view of the event in the world. Located just 150 feet below the world-renowned Times Square New Year’s Eve Ball on the corner of 42nd Street and Broadway, the luxury lifestyle hotel presents two exclusive New Year’s Eve packages for their largest annual event. (Read more)
Chinese investors sue Nick Mastroianni over alleged $99.5M EB-5 fraud A group of nearly 80 Chinese investors have filed suit against Nicholas Mastroianni II, alleging he defrauded them of their EB-5 investments.
EB5Projects.COM • 2018
Mastroianni founded the U.S. Immigration Fund for EB-5 investment. He’s known to have raised EB-5 funds for a number of major developers, and USIF remains one of the biggest EB-5 service providers. (Read more)
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AAFF II - TRU Construction Update (October 2018) TRU Ft. Lauderdale Airport, an investment of Atlantic American Fortune Fund II, is under construction. Sitework has commenced. Foundations will be poured in the upcoming months and vertical construction is expected to begin before year end.
This 115-room Hilton branded hotel will support South Florida’s expanding Ft. Lauderdale-Hollywood International Airport. (Read more) Related Story: Wyndham Garden Ft. Lauderdale Airport Construction Update (September 2018)
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Port Elgin Microtel Inn and Suites site plan approved by Saugeen Shores Council
A bylaw authorizing a site plan for a three-story, Within weeks construction will begin on an $8 to $10 68-room Microtel Inn & Suites at the south end of million, 68-room Microtel Inn & Suites hotel in Port Port Elgin was approved Oct. 9 by Saugeen Shores Elgin. (Read more) council. The proposed hotel façade is unique to the Microtel brand and designed with Port Elgin in mind.
Resorts get ready for ski season
For the most part, Vermont’s winter resorts find themselves wellpositioned for the upcoming season, as general factors - a strong economy, a reasonably steady Canadian dollar, and continued infrastructure investment - give cause for optimism. And last winter, while hardly stellar, was not bad: It saw an uptick from the forgettable preceding season, with total skier-days rising by 1.2 percent to 3.96 million, according to Ski Vermont, the Vermont Ski Areas Association. (Read more)
Ten Questions with Robert Gladstone of Madison Equities, Developer of Downtown’s First Residential Supertall Skyscraper, 45 Broad Street The Gladstone family has a long history of construction in New York, and the family’s current venture, Madison Equities, was founded in the mid1960’s. Now, Madison is behind what will imminently become the first actual residential supertall below 34th Street in Manhattan, with 45 Broad Street set to rise 1,127 feet to its peak. Last week, Madison Equities’ CEO Robert Gladstone sat down with YIMBY to talk about that project, as well as everything else in the firm’s pipeline for the Five Boroughs. (Read more) EB5Projects.COM • 2018 187
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Midtown Miami Triptych Hotel Breaking Ground in Second Quarter of 2019
The forthcoming Triptych Hilton Curio Collection Hotel, planned for the corner of 36th Street and N. Miami Avenue, across the street from Midtown Miami, is breaking ground in the second quarter of next year, according to Francisco Arocha, CEO of HES Group. The hotel is a 20-story building between Midtown Miami and the I-195 highway, and will include 297 rooms, more than 10,000 square feet of meeting space, an elevated pool deck with restaurant and a rooftop deck with another restaurant. (Read more)
One Big Sky developer details Billings growth strategy Billings city council members heard an update of the proposed One Big Sky District on Monday night during a council work session.
The council received an update from Hammes Company president Bob Dunn. Hammes is a commercial developer tasked with creating the development plan blueprint for One Big Sky District.
One of the primary “anchor” projects is a convention center. (Read more) Related Story: One Big Sky District aims to be more than a convention center, developer says
EB5Projects.COM • 2018
For $4.8M, this Gramercy co-op comes with a 21-foot-long veranda and a coveted key to the park
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A co-op in Gramercy recently hit the market for $4.75 million and comes with one of New York City’s most priceless amenities: an exclusive key to the park. Located at 48 Gramercy Park North, this one-bedroom home measures 1,765 square feet and features 14-foot high ceilings and exposed brick. With south-facing views overlooking the park, and a 21-foot-long veranda, this apartment should not be missed. (Read more)
NOVEMBER 2018 Posts and Project Updates
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An example of inconsistent consulate decisions – The culture of no in current immigration process to stop even the legal immigration On March 15, 2018, one EB-3 Other (EW) Visa applicant’s (GUZ20085xxxxx) (Applicant 1) Immigrant Visa was denied in Guangzhou. The Applicant had an approved I-140 petition based on the certified Labor Certification (LC) application. He also had a recently signed Employment verification letter stating that the employer, continues to have a permanent, full-time job offer for him once he obtains the IV and enters the U.S. (Read more)
EB5Projects.COM • 2018
As the EB-5 Program Comes Up for Another Extension, Recent Litigation Puts the Spotlight on the Program’s Flaws
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Developers and project managers sometimes misuse EB-5 investors’ funds, recent court cases show.
As the EB-5 Immigrant Investor program faces another extension deadline, litigation related to alleged fraud is shining a spotlight on the program’s flaws. (Read more) Related Stories: • Approaching Dec 7->Dec 21 • EB-5 Extended to December 7, 2018 with No Changes
N O V E M B E R 2018
New EB-5 regulations could kill program, say experts
The popular EB-5 immigrant investor program will receive some long-awaited guidelines in the coming weeks — but they aren’t the type of changes real estate had in mind. After spending years in legislative limbo, the federal government’s EB-5 visa policy will not get the congressional tune-up desired by developers and investors. (Read more)
More South Africans choosing EB-5 Investment Visa for US immigration
Families from around the world have gained permanent residency in the United States through the EB-5 investor green card program. With the South African economy entering its first recession since 2009 and the value of the Rand falling 20% in 2018, more and more South Africans are seeking alternate permanent residency in foreign countries. Industry data reveals that South African demand for this program is the highest it has ever been, with a 486% increase in the number of EB-5 petitions filed by South Africans over the past three years. (Read more)
SEC Charges Advisor with Scamming Elderly Out of Millions: Enforcement
EB5Projects.COM • 2018
The Securities and Exchange Commission charged The SEC’s complaint alleges that Douglas Simanski a former registered representative and investment raised more than $3.9 million from approximately 27 advisor with operating a long-running offering fraud. of his brokerage customers and investment advisory clients by telling them that he would invest their money in either a “tax-free” fixed rate investment, a rental car company, or one of two coal mining companies in which Simanski claimed to have an ownership interest. (Read more)
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The Visa Bulletin: What It Is and What It Actually Means
Whether you are an immigration lawyer or an applicant for a U.S. immigrant visa, the Visa Bulletin is a goto resource to keep updated on the latest news and visa numbers that are released by the United States Department of State. This article will provide you with a basic understanding of what you need to know about the Visa Bulletin and what the numbers actually mean. (Read more) Related Stories: • There’s a US immigration program most don’t know about • Letter: Good Government
The latest crisis for EB-5 visa backlogs extend to more countries
The EB-5 Industry was stunned when in June 2017, the OMB announced that the backlog for Chinese investors had reached 10 years, effectively stymieing the market. Anxious to find investors for EB-5 projects, regional center operators and developers started pursuing potential EB-5 candidates in new terrains. India quickly became a favourite hunting ground. (Read more)
Quiros, EB-5 fraud scandal ‘mastermind,’ gets $200K Vermont tax refund check
Ariel Quiros, the former Jay Peak owner accused of masterminding a fraud involving hundreds of millions of dollars, just received a $200,000 tax refund from the state of Vermont, according to court records. It’s unclear how much, if any, of those funds Quiros will pocket. At least half, or $100,000, will go to the receivership currently overseeing the Northeast Kingdom ski resort. (Read more)
EB5Projects.COM • 2018
Updates on EB-5 Visa Retrogression
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At a recent EB-5 industry forum, Mr. Charles Oppenheim, Chief of the Department of State (DOS) Immigrant Visa Control & Reporting Division, provided key insights on what the latest data suggests regarding the future availability of visas in the EB-5 category. Top EB-5 Visa Users in FY2018: China, Vietnam, and India
In terms of EB-5 number use by country, although Mainland China remains the largest user of EB-5 visa numbers. (Read more)
Related Stories: • U.S. needs stronger stand on China • EB-5 Clarity for Vietnamese Investors • Update 2018: EB-5 Processing Time. Form I-526 • America Welcomes Immigrants. Statistically Confirmed • I’ve Applied for Citizenship but My Green Card Expired. What Do I Do Now? • Five things to consider about the EB-5 visa for US immigration • Applying data to questions (I-526 timing, visa timing for China, Vietnam, India)
N O V E M B E R 2018
Dissident EB-5 investors may force rare legal showdown with Seattle developer A group of EB-5 investors in the Home Plate Center office complex are challenging developer American Life Inc. in a dispute that could impact the way builders and investors approach the visa program.
EB5Projects.COM • 2018
A group of EB-5 investors in the Home Plate Center office complex are challenging developer American Life Inc. in a dispute that could impact the way builders and investors approach the visa program. (Read more)
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11/19 Stakeholder Meeting with USCIS (redemption, redeployment)
Anyone not already depressed and frustrated is welcome to my recording of today’s EB-5 stakeholder teleconference with USCIS. A commenter asked: can you please clarify what was expected outcome of this teleconference and what did not go well. That’s an excellent question and makes me admit that the teleconference was no worse than could have been expected. (Read more) Related Story: EB-5 immigrant petitions are at lowest levels in at least five years
CanAm Announces its 36th EB-5 Partnership Loan Repayment CanAm Enterprises (“CanAm”), a leader in jobcreating EB-5 Visa financing, has repaid its 2,000th investor-family – pushing the amount of fullyrepaid investment capital over the $1 billion mark. The successful project that propelled CanAm past the $1 billion plateau, its 36th EB-5 partnership, was repaid on time and in full on November 7. (Read more)
EB5Projects.COM • 2018
Related Story: CanAm Enterprises Announces its 34th EB-5 Partnership Loan Repayment – The Marriott Courtyard at the Navy Yard Project
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Mastroianni to EB-5 Investors: Your Lawsuit Is ‘Sham’ Capitalizing on Unrelated Fraud Claims Prolific EB-5 broker Nicholas Mastroianni II denies claims by Chinese investors that he duped them out of $99.5 million in a Jupiter real estate venture. (Read more)
N O V E M B E R 2018
AILA/IIUSA Forum Updates (Kendall, Oppenheim, visa availability) Last week I attended the 2018 AILA & IIUSA EB-5 Industry Forum, which featured appearances by new IPO Chief Sarah Kendall and Department of State Visa Control Office Chief Charles Oppenheim. Ms. Kendall is a career civil servant and spoke accordingly. She gave the impression of being competent, in control, and unlikely to say anything unexpected. (Read more) Related Story: Aila/Iiusa Eb-5 Industry Forum in Chicago, Illinois
Delray Beach Owners Accused of EB-5 Visa Fraud Over Eatery
Howard DuBosar, left, is managing shareholder at The DuBosar Law Group and Jeff Ostrow is managing partner at Kopelowitz Ostrow. The owners of South Florida bars and eateries, including American cuisine restaurant ROK:BRGR and cocktail bar Apothecary 330, are accused of duping two investors into putting $1 million into a Delray Beach venture by misrepresentation. (Read more)
Federal judge blocks questioning of top state EB-5 officials, for now A federal judge has blocked an attorney for a group of EB-5 investors from questioning former state officials who oversaw the scandal-plagued immigrant investment program in Vermont — at least for now. (Read more)
On Friday, I was honored to join a group of today’s business leaders and innovators at WeWork, who are shaping tomorrow, for a discussion on immigration. In a room nineteen floors above the rumbling of New York’s traffic with sushi in hand, two concerns quickly became central to our discussion: (1) the growing barrier of US businesses—small, mid, and large—to access to the global workforce (Read more)
EB5Projects.COM • 2018
Ray Lahoud Talks Immigration Law with New York Business Leaders and Innovators
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Full Circle - $500k investment returned Lawrence Chang, President of Maryland Center for Foreign Investment (MCFI) recently came back from China, September 2018 to pay back the Investors $500,000.00 capital investment for the Maryland Live! Casino Project. We are so proud that we have come full circle. MCFI has 100% I-526 approvals, 100%
I-829 approvals and now 100% $500,000.00 capital investment returned to the investors. “THE MCFI” has a stellar track record and will continue to bring safe projects to the EB-5 marketplace. For more info, please contact us at +1-410-312-9901 or info@mcfirc. com (Read more)
New owners of Fort Lauderdale Beach hotel project score $52M loan EB5Projects.COM • 2018
Magna Hospitality Group’s Robert Indeglia and the Las Olas Resort.
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Magna Hospitality bought the property out of bankruptcy in August The new owners of an embattled Fort Lauderdale Beach hotel project just secured a $51.5 million loan to complete construction of the building. (Read more)
N O V E M B E R 2018
Chinese investors seeking EB-5 visas want a receiver for Royal Palm Beach office project Thirteen Chinese investors have sued South Atlantic Regional Center and Joseph Walsh Sr. over their $7.3 million stake in the project at 9200 Belvedere Road.
Chinese investors who invested $7.3 million through the EB-5 visa program in an office development in Royal Palm Beach want a courtappointed receiver to complete the development. (Read more) Related Story: Receiver Sought for Royal Palm Beach Office Venture Where EB-5 Investors Claim Fraud
Ecco on Orange | AAFF II Construction Update (October 2018)
Ecco on Orange, one of four portfolio assets in Atlantic American Fortune Fund II (AAFF II) will be a 300-unit multifamily residential apartment community located two miles south of downtown Orlando. The property will feature a rooftop pool, fitness center and amenity deck, expansive multilevel clubhouse, cyber cafe, virtual golf and resident lounge. The property will also benefit from a large grocery-anchored (Lucky’s Market) retail center that is being developed adjacent to the property. (Read more)
A Classic Pre-War Duplex in Manhattan’s Tony Sutton Place EB5Projects.COM • 2018
This apartment is in a 14-story co-op building constructed in 1928, which contains only nine apartments and is primely positioned on the corner of 57th Street and Sutton Place, overlooking the Ed Koch Queensboro Bridge in Manhattan. (Read more)
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Burke snowmaking boost hinges on processing investors’ green cards Burke Mountain Ski Area may get a more than 10-fold boost in its snowmaking, but only if the man running the resort can find a way around a federal agency’s decision to close the doors on the scandal-plagued Vermont EB-5 Regional Center.
That’s the message from Michael Goldberg, who was put in charge more than two years ago of the operation of Burke Mountain Ski Area and Jay Peak Ski Resort after regulators accused the owner of the two resorts, Ariel Quiros, and his business partner, Bill Stenger, of investor fraud. (Read more) Related Story: As Big Firms Gobble Up Ski Resorts, Are Burke and Jay on the Menu?
The Wharf Development Team Seeks $800M Refinancing Deal The 1.4M SF first phase of The Wharf delivered over one year ago, and now the developers behind the Southwest D.C. development are looking to refinance the project ahead of its next phase. The development team of Madison Marquette and PN Hoffman, plus equity partner PSP Investments, retained Eastdil Secured to help it seek a five-year loan totalling up to $800M on the completed first phase, Commercial Mortgage Alert reports. (Read more)
U.S. Immigration Fund Announces Marriott EDITION at 701 Times Square is scheduled to open February 1st EB5Projects.COM • 2018
The Marriott EDITION is part of U.S. Immigration Fund’s EB-5 project, 701 TSQ.
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This February, the new 452-key Marriott Edition hotel located in Times Square will officially open to the public. The newest hotel addition in Times Square is being developed through EB-5 capital and is a U.S. Immigration Fund project. The first - and likely the last new construction project in Times Square in 25 years - 701 TSQ is entering the market to offer hotel, retail and restaurant space. With the project near completion, 701 also boasts one of the largest LED screens in Times Square, traversing a massive 18,000 square feet. (Read more)
N O V E M B E R 2018
Galleria-area condo Arabella’s first residents to move in next week Homeowner association fees average $700 per month for the smaller units, $1,200 a month for medium units and $1,900 per month for penthouses. (Read more)
Suit alleges ‘unpaid’ commissions in Statler development The developer of the Statler Hotel redo is being sued by a New York man who says he was stiffed for more than a $1 million in commissions he says he’s owed for finding foreign investors for the project.
Mehrdad Moayedi, whose Centurion American Development Group took on the $250 million renovation project, is one of three defendants in the case. All are heading to court next week to try to get the breach of contract suit thrown out. (Read more)
Related Story: Companies behind Statler redevelopment facing suit from man claiming $1M in unpaid commissions
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Harbourside Place developer files motion to dismiss EB-5 fraud lawsuit
Harbourside Place LLC filed a motion to dismiss a lawsuit brought on by Chinese EB-5 investors, who allege the developer behind the Jupiter shopping center attempted to defraud them of millions. The motion, filed in Palm Beach County Circuit Court on Nov. 7, argues the complaint by the EB-5 plaintiffs is a “sham” that attempts to capitalize on unrelated cases of EB-5 fraud in order to coerce a settlement from the defendants. (Read more)
New office campus coming to Irving Developer T2V Properties LLC is building an office campus designed especially for “up-and-coming IT companies.”
Phase one of Irving IT Park, which will be located at 1410 Westridge Circle North, will include a three-story building with 35,430 square feet of Class A office space. Each floor can be taken by a single tenant or broken up into spaces ranging from 2,500 to 5,000 square feet. (Read more)
EB5Projects.COM • 2018
SEC Charges Businessman and Lawyer in Fraudulent Eb-5 Scheme
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The Securities and Exchange Commission charged a businessman and a California-based attorney with defrauding investors seeking to participate in the EB-5 immigrant investor program, stealing their money to fund personal expenses.
The SEC’s complaint alleges that Robert A. Ferrante and attorney Marilyn R. Thomassen participated in a fraudulent scheme with PDC Capital Group and its principal, Emilio Francisco, to defraud at least 135 investors out of $9.5 million using 19 different EB-5 offerings made primarily to investors in China. (Read more)
N O V E M B E R 2018
Peli Peli’s Eyeing the Woodlands for Its Fifth Location
The team behind Peli Peli, Houston’s favourite restaurant chain dedicated to South African cuisine, has The Woodlands in its sights. Details on a lease provided by real estate broker CBRE Houston indicate that Peli Peli will open a location at 1201 Lake Woodlands Drive. The lease details indicate that the new location is 6,822 square feet. This would be Peli Peli’s fifth restaurant in Houston, joining outposts at the Galleria, Vintage Park, Katy’s Cinco Ranch, and an Austin location. (Read more)
Dunkin’ Celebrating Veterans Day with Free Donuts Dunkin’ has been serving guests its signature donuts for more than 68 years.
Dunkin’ will once again celebrate Veterans Day with a sweet salute to those who serve our country. On Sunday, November 11, at participating Dunkin’ restaurants nationwide, veterans and active duty military are eligible to receive a free donut of their choice with no purchase necessary. This is part of the brand’s ongoing efforts to show its support and appreciation for those who serve. (Read more) EB5Projects.COM • 2018 201
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DECEMBER 2018 Posts and Project Updates
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Congress Breathes another Life into Disastrous EB-5 Program
In short, the investor visa program makes immigrant visas available to wealthy foreigners who invest or are seeking to invest at least $1,000,000 in a new commercial enterprise. While created with the intention of spurring domestic economic growth by luring foreign investment, the program has fallen woefully and dangerously short of expectations. (Read more)
Related Stories: • Updates (reauthorization or shutdown, indebtedness, visa numbers, litigation) • The Exchange of a Condo for an EB-5 Visa: Important Warning to EB-5 Investors • Will USCIS continue to take I-526 applications past the December 22, 2018 deadline? • Chinese Immigrant Investors Pull Back While America Is Shut Down • EB-5 Visa Processing During the Government Shutdown
EB5Projects.COM • 2018
With attention focused on the highly-public battle over border wall funding, most missed the outrage that both houses of Congress passed a short-term spending bill that would extend the life of the EB-5 visa program until December 21.
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2018 in Review
A reader asked me this question a couple weeks ago: Is EB-5 still a choice? Can it be a good option today for project companies or prospective immigrants? The answer: yes, though it’s complicated. In 2018, we felt the sting of legislative, regulatory, and policy
uncertainty, and the pressure of limited visa numbers and associated wait times. Limited visas mean that EB-5 is no longer a good choice for the ones who used it most in recent years: China-born immigrants and mega-projects. (Read more)
Seattle developer heads to court in dispute with EB-5 investors over a Sodo office complex The limited partnerships formed by Seattle developer American Life Inc. for Home Plate Center are asking a judge to determine the value of the Sodo office complex after a dispute with some of its investors.
American Life — one of the region’s top EB-5 developers — formed a new limited partnership for the property. They offered investors an opportunity to cash out on their investment in Home Plate Center or take a stake in the new partnership. (Read more)
More than US Dollar 1 Billion in EB-5 Capital Fully Repaid by CanAm Enterprises
EB5Projects.COM • 2018
CanAm Enterprises (“CanAm”), a leader in jobcreating EB-5 Visa financing, has repaid its 2,000th investor-family – pushing the amount of fully-repaid investment capital over the $1 billion mark. The successful project that propelled CanAm past the $1 billion plateau, its 36th EB-5 partnership, was repaid on time and in full on November 7.
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“We have pioneered many EB-5 milestones, but this one gives us particular pride,” CanAm President and Chief Executive Officer Tom Rosenfeld said. “It highlights the sincerity of our goal to protect our investors’ best interest – and our success in doing so.” (Read more)
90 Chinese Investors Get $49 Mln Back after EB-5 Visa Fraud Charges Settled I posted an interview four months ago with American immigration consultant Steve D. Albert about what he termed “rampant fraud” in the EB-5 visa program that provides overseas investors with a path to apply for a U.S. permanent residence.
that three Houston-area developers have agreed to settle charges that they misused investor funds raised from 90 Chinese investors under the EB-5 Immigrant Investor Program on unrelated projects. (Read more)
Related Stories: • Houston-area developers settle with SEC after Last week, Chinese investors whose EB-5 investment misusing $20.5 million raised in EB-5 offering funds were misused in Texas received some good • Three Developers Settle Charges of Fraudulent news from the Securities and Exchange Commission: EB-5 Offering The U.S. securities regulator announced on Dec. 12
D E C E M B E R 2018
January 2018 Visa Bulletin Updates
The Department of State (DOS) January 2018 Visa Bulletin has resulted in mixed bag of retrogression for some and advancement for others. The EB-1 category moved forward approximately 3 months across the board. EB-3 China and India are both now at Dec. 15, 2016. The EB-2 category showed minor improvement for China to Aug. 1, 2015, but no movement at all for India, which is still set at April 1, 2009. It was a similar result in the EB-3 category, with China and India holding the same dates as last month’s Visa Bulletin. (Read more)
EB-5 is Very Much Alive within the Korean Market
There are gains to be made even in today’s competitive EB-5 market. (Read more)
EB5Projects.COM • 2018
As depicted by this recent image the Korean visa market is taking advantage of the dynamics as Chinese retrogression brings the program to a snail’s pace in China. The marketing information being projected as this ad states. “Investors who are considering apply for US immigration immigrants should be in a hurry if they can afford it.”
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Now Open: Two NYC Hotels; More in Major Cities… New York City, Seattle, Atlanta and Dallas are all seeing hotel activity. With openings across the U.S., brands are setting roots in major cities: Park Terrace Hotel Opens in NYC’s Bryant Park
luxury residential condominiums. (Read more)
The newly built Park Terrace Hotel opened its doors in Bryant Park. The Bryant 16 West 40 project is 32 stories high with 2,500 sq. ft. of retail space, 25,500 sq. ft. of restaurant space and 57
What is Jared Kushner ‘Shielding’? Watchdog granted court order for DHS to disclose any role he played in renewing EB-5 Visa Program Jared Kushner, senior White House adviser, sits in a county sheriff listening session with President Donald Trump (not pictured), in the Roosevelt Room of the White House, on February 7, 2017. A watchdog group filed a public records lawsuit for information on any involvement Kushner had in the Trump administration’s reauthorization of the EB-5 visa program. (Read more)
Jay Peak receiver comes under fire for settlement that would shield Quiros
EB5Projects.COM • 2018
Michael Goldberg, the court-appointed receiver in the EB-5 fraud case, speaks at a Statehouse news conference Thursday.
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A lawyer for People’s United Bank says the man overseeing two Northeast Kingdom ski resorts at the center of the largest alleged fraud in the state’s history has cut too sweet a deal with the accused “mastermind” of the scheme. Jonathan Minsker, a Florida attorney representing the bank, filed a motion asking a federal judge to reject a key part of a proposed settlement in a lawsuit filed by Michael Goldberg, a court-appoint receiver, against Ariel Quiros, the former owner of the Burke and Jay Peak resorts. (Read more)
D E C E M B E R 2018
The Cloudy Future of EB-5 The troubled EB-5 visa program, used by various real estate developers as a source of funding though fraught with clouds of suspicion and cases of fraud, got another extension on Friday when President Donald Trump signed a continuing resolution to fund the federal government. The resolution also included the continuation of EB-5, along with other immigration programs. (Read more)
Related Stories: • EB-5 visa program reform • President Signs Extension of Government Funding and Programs, such as EB-5 and Other Critical Immigration Programs, Through Dec 21, 2018
• Washington Update: EB-5 Regional Center Authorization Receives Short Term Extension until December 21st • Will the EB-5 Program Be Renewed, Altered or Abolished? • Roadblocks Could Derail EB-5 Investment Capital
Miami’s Luxury Real Estate Market Is Heating Up, Thanks To Big-Name Architects and Foreign Money
EB5Projects.COM • 2018
Art Basel is in full swing in Miami but it isn’t just this week that all eyes are on the city. Luxury high-rise developments, designed by some of the biggest names in architecture, have seen a surge in growth over the past ten years and there doesn’t seem to be any sign that demand is slowing down. (Read more)
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Investors file fraud suit against ADC Downey, seek $4.9 million
Chinese foreign investors have filed a suit against a Los Angeles-based partnership they subscribed to over allegations of fraud. Yicong Gan, Ying Liu, Hui Luo, et al. filed a complaint on Nov. 19 in the U.S. District Court for the Central District of California against ADC Downey LP and ADC Downey GP LLC over alleged violation of the Securities Exchange Act and common law fraud. (Read more)
EB5Projects.COM • 2018
This Week in Securities Litigation
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The Supreme Court was the focus this week with oral argument in Lorenzo v. SEC, an action centered on ascertaining the dividing line between primary and secondary liability under Exchange Act section 10(b). The arguments were based on the application of two prior decisions of the Court, Janus regarding liability for false statements under Rule 10b-5(b) and Central Bank of Denver which held that if the conduct falls within the language of section 10(b) there is a primary violation of the statute. (Read more)
Project Updates
D E C E M B E R 2018
This Over-the-top New Year’s Eve Party is on a Rooftop Just 150 Feet from the Ball Drop in Times Square
An estimated one million people crowd into sectioned-off quarters of Times Square every year to see the famous countdown and ball drop on New Year’s Eve.
EB5Projects.COM • 2018
But that’s not the only way to enjoy the celebratory night in person. You can experience an exclusive party at The Knickerbocker Hotel’s St. Cloud rooftop, just 150 feet from the ball drop — if you’re willing to pay at least $4,335. (Read more)
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New York City Regional Center Announces Completed Construction in 17 of Its Project Offerings to Date Completed projects have successfully utilized NYCRC EB-5 financing to assist in the construction of over 3.8 million square feet of new development and renovation resulting in thousands of new jobs for New Yorkers. The New York City Regional Center (“NYCRC”) is pleased to announce that construction of projects in seventeen (17) of its offerings is now complete. These completed projects have successfully utilized NYCRC EB-5 financing to assist in the construction of over 3.8 million square feet of new development and renovation as well as infrastructure upgrades resulting in thousands of new jobs for New Yorkers. (Read more)
Tourists flock to New York’s Bryant Park to experience winter wonderland
New York City is one of the most popular tourist destinations during the holiday season. One of the reasons is because of the Bryant Park winter village. (Read more)
The New York Wheel is getting sold for parts at auction EB5Projects.COM • 2018
Parts of failed project up for sale include its legs, drive towers and cable spokes
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Discarded parts from the failed New York Wheel project will get put up for auction next month in Delaware. (Read more) Related Stories: • Chinese Investors Embraced Program for U.S. Residency. Not Anymore. • Auction date for New York Wheel parts has been set
D E C E M B E R 2018
Newport shakes off disappointment to move forward
Newport isn’t looking in the rear-view mirror, at least not any more. Two years ago, the city was blindsided when two projects key to the city’s economic development efforts collapsed under the weight of the EB-5 debacle. But that was yesterday. Today, Newport is forging ahead taking the future into its own hands. Key to the revitalization plan is a project that would connect the downtown with the waterfront along the shores of Lake Memphremagog. (Read more)
Baltimore County Council OKs $78M help for Tradepoint Atlantic Tradepoint Atlantic is looking for the government’s help in smoothing over the rough edges of the vast property to attract tenants and return jobs to Sparrows Point where tens of thousands of steelworkers once worked for Bethlehem Steel.
The Baltimore County Council voted Monday evening to give Tradepoint Atlantic up to $78 million to build roads, water lines and sewer pipes at the old Bethehem Steel mill in Sparrows Point that the company is redeveloping. (Read more)
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