Major EB-5 Regional Center Operators Sue


WASHINGTON, May 24, 2022 (GLOBE NEWSWIRE) — Five leading EB-5 regional hub operators, along with the EB-5 business organization Invest in the USA (IIUSA), today collectively filed a lawsuit before the District Court of the District of Columbia v. US Citizenship and Immigration Services (USCIS). The five regional centers – EB5 Capital, Civitas Capital Group, Golden Gate Global, CanAm Enterprises and Pine State Regional Center – and IIUSA have jointly retained Klasko Immigration Law Partners and McDermott Will & Emery LLP to act on their behalf. The lawsuit challenges USCIS’s unilateral disauthorization of the more than 600 Designated Regional Centers in existence at the time the EB-5 Reform and Integrity Act of 2022 (“RIA”) was enacted, as well as the USCIS interpretation of the RIA which requires each regional center to reapply for designation and receive approval as such before commencing operations.

Plaintiffs argue that USCIS’s position is contrary to the ordinary meaning of the RIA and frustrates the intent of Congress in enacting the RIA.

“We are putting our different business interests aside and joining forces to achieve the common goal of protecting the rights of our customers and continuing to provide needed capital for economic development projects,” the plaintiffs said in a joint statement. “Through this action, we seek to protect the viability of this highly successful economic development and job creation program, the regional centers that facilitate the program, and the foreign investors that participate in the program. We believe that Congress intended to allow regional centers to immediately resume EB-5 operations – while working to quickly bring themselves into compliance with the new integrity and other RIA requirements. In fact, there is consensus within the EB-5 industry that Congress intended to revive the Regional Center program as soon as the RIA takes effect on May 15, 2022.”

Together, these five long-established operators operate 26 regional centers in 21 states. Over the years, they have facilitated $5.3 billion in EB-5 investments, developing 143 projects across the country, and they are responsible for creating more than 190,000 jobs for American workers. The EB-5 program has an extremely positive impact on the US economy. According to data collected and analyzed by IIUSA, between 2008 and 2021, the EB-5 program has helped generate $37.4 billion in foreign direct investment to create and retain American jobs for Americans, all at no cost to the taxpayer.

To this end, the claimants funded the filing of a amicus curiae brief by IIUSA in a separate action against USCIS by Behring Regional Center currently pending in the District Court for the Northern District of California. “We believe that a global decision in the Behring case could serve the industry as a whole and deserves our support,” the plaintiffs added in their joint statement.

About EB5 Capital
EB5 Capital offers qualified investors worldwide opportunities to invest in job-creating commercial real estate projects to obtain permanent residence in the United States, as well as private equity investments and secondary passports. For more information, follow EB5 Capital on LinkedIn and go to www.eb5capital.com.

Contact:
Juline Kaleyias, Vice President of Business Development
[email protected]

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