EB5 Investors Magazine Volume 1 Issue 2 | Page 36

Continued from page 35
Recent activity in the Securities & Exchange Commission ( SEC ) enforcement
The SEC enforcement action against the Intercontinental Regional Center Trust of Chicago and its affiliated companies may have broad implications for the EB-5 program . The judge denied the motion of the defendants Chicago Convention Center to dismiss for lack of jurisdiction and / or for failing to state a claim . The defendants said that the securities were sold overseas ( almost exclusively in China ) and therefore SEC has no jurisdiction .
The judge used three tests to come to her decision :
• The “ conduct test ”;
• The “ effect test ”; and
• The “ transactional test ” The results of these tests were as follows :
• Using the prospect of gaining U . S . residency through the EB-5 program satisfied the “ conduct test ”
• A minimum investment of $ 500,000 which creates or preserves 10 jobs for U . S . workers satisfied the “ effects test ”
• The signing or accepting the subscription agreement in the United States satisfied the “ transactional test ”
It will be important to all regional centers to be aware of this important development and govern themselves accordingly .
EB-5 Impacts on Job Creation
& Economic Stimulus Study Results for 2010-2011 *: 33,000 jobs supported $ 2.7 billion contribution to GDP
If 10,000 EB-5 Visas are used : 83,000 jobs supported $ 6.6 billion contribution to GDP
With a change in the law and 20,000 EB-5 Visas are used : 166,000 jobs supported $ 13.2 billion contribution to GDP
Tax Revenue Spending by EB-5 investors contributed $ 347 million to federal tax revenues and $ 218 million to state and local tax revenues .
* Information from report by IIUSA in collaboration with IMPLAN Group LLC .: Economic Impacts of the EB-5 Immigration Program 2010-2011 Report .
EB-5 Processing Statistics Q1 and Q2 2013
• I-526s : 3,285 received , 1,526 approved , 483 denied
• I-829s : 427 received , 467 approved , 24 denied
• I-924s ( includes amendments and initial designation ): 325 received , 65 approved , 13 denied
EB-5 Visa Usage and Projection
The September 2013 Visa Bulletin issued by the visa office of the State Department shows that the EB-5 category is current for all countries . The maxing out of EB-5 visas for Chinese nationals in the fiscal year ending September 30 , 2013 is unlikely . There is a high probability that China will reach the maximum number of EB-5 visas in FY 2014 , unless the U . S . Congress changes the allocation of immigrant visa numbers .

David Hirson is a Partner at the global immigration law firm of Fragomen , Del Rey , Bernsen & Loewy LLP , which is recognized as the leading global immigration service provider . Immigration law is not just a practice area within the Firm – it ’ s the Firm ’ s only practice . In 2012 , David ’ s office was selected as the EB-5 Immigration Law Firm of the year .
David Hirson
Contact information for David Hirson : dhirson @ fragomen . com + 1 949 660-3504
36 EB5 Investors Magazine