In the past few years there have been a quite a number of EB-5 Regional Center related cases. They are pretty well documented in the press — just google “Eb-5 Fraud” and one can get a good sense of the range of scams and fraud causes that can erupt from EB-5 cases. In our opinion, the best way to minimize the risks involved in an EB-5 investor case (in terms of fraud) is to manage one’s own business enterprise.
In most of the uncovered fraud cases, there has been major litigation and government prosecution involved. In many cases the investors were able to recover the funds.
Well it looks as if there is a new area where the the litigation is going and it’s towards the banks that are holders of the escrow accounts. These banks are supposed to hold the EB-5 investment funds in an escrow account until a few agreed upon actions happen, such as approval of the investor’s EB-5 investment petition. It looks as if in the allegations here, that did not happen.
Click on the link below for the article.