GAO Calls Out EB-5 Investor Program for Fraud Risk

The US Government Accountability Office told Homeland Security to play closer attention to fraud surrounding the wildly popular EB-5 program, GAO said in a Wednesday report. The popular program grants green cards to investors whose investments help create jobs, making it an easy target for fraud, GAO told Law360. Prospective investors might not obtain the funds lawfully and immigrant investors often fall for fraud schemes, GAO says. The SEC recently took down Florida-based Ireeco for brokering over $79M in illegal immigrant investments. The USCIS released a draft Monday, proposing a raise from the current $500k minimum investment and 10,000 per year visa cap requirements—but official program renewal isn't until this fall. [Law360]

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