The United States allows several different legal ways to become a citizen of the United States. International persons would need to obtain a permanent resident status, or a green card, first before becoming a citizen. They can do this in several ways, via their family, through a job, or investment. Investing in the United States with respect to obtaining a green card is what the EB-5 visa program is all about. This paper will conclude whether the EB-5 program works or not. Permanent worker-based emigration into the United States is sectioned into 5 preference categories (“Permanent Workers,” n.d.). The first classification is labeled EB-1. This category is reserved for those who have extraordinary abilities in the sciences, arts, education, …show more content…
Citizenship and Immigration Services (USGIS) department (“EB-5 Immigrant Investor Program,” n.d.). This program was to benefit the U.S. economy by attracting foreign investors (Persaud, 2012, pg. 256). These foreign investors would need to invest $1,000,000 or more on a new commercial enterprise or an established company, newer than 1990, and needs to be restructured or reorganized so that it results into a new commercial enterprise. However, if the investors choose to establish this venture in a targeted employment area, they would only need to invest $500,000, but the same rules apply. A targeted employment area is where there is high-unemployment area or is a rural area (“About the EB-5 Visa Classification,” n.d.). Most investors choose to work in big cities where they would have the best chance of success. They would also need to create enough capital to obtain 10 or more qualified employees that work full-time and permanent and or have a 40% increase in net …show more content…
O’Connor and James A. Geisler were found guilty of “defrauding foreign investors through a large-scale EB-5 investment scheme in United States vs. O’Connor. Among other counts, the two men were convicted of immigration fraud and conspiracy to commit immigration fraud in relation to the EB-5 program” (Slattery, 2015, pg. 508-509). They formed a scheme called, “Invest in America,” where investors would not have to pay the extraordinary amount required. The payment would be something like $150,000 along with a $20,000 processing fee. The investors were told that the rest of the money would be financed through a Bahamian bank. This is just one example of the fraud that has taken place. Another one was the SEC vs. Chicago Convention Center, LLC where the defendants lured over 250 Chinese investors into buying $145 million in securities along with administration fees to finance the Chicago Convention Center (Slattery, 2015, pg. 511). Foreign investors even use the EB-5 program to started Charter schools in South Carolina (Smith, 2017). And the list goes on and