Source: http://www.immigrationinsider.com/2010_05_01_archive.html
Timestamp: 2013-05-21 08:22:22
Document Index: 519580810

Matched Legal Cases: ['art 3', 'arts 1', 'art 2', 'art 1', 'art 3', 'arts 2']

Immigration Insider: May 2010
Vintage Jose: EB-5 Article from 11/20/98
PLEASE NOTE: THE INFORMATION CONTAINED IN THIS ARTICLE IS BASED UPON THE LAW, TERMINOLOGY, AND EB-5 SITUATION AS OF 1998. IT IS NOT CURRENT INFORMATION AND SHOULD NOT BE RELIED UPON FOR VISA STRUCTURING PURPOSES!! 11/20/98an examination of the EB-5 Immigrant Investor Visa Category andImplications of Recent INS decisionmakingby Jose E. LatourWhile most immigration attorneys handling business visa cases haveat least dabbled in EB-5 petitions, the reality is that such filingsare still few and far between. This article will explore thefeasibility of the EB-5 NOT from a technical/legal standpoint, butfrom the standpoint of the immigrant investors concerns. The purpose,then, is to assist a potential EB-5 investor in deciding whether thismechanism is indeed in his or her interest.I will not delve into detail as far as the EB-5 requirements- you cansearch [deleted] for this information. The basics are that inorder to qualify for permanent residency in the U.S. for the investor,spouse, and unmarried children under 21, the investor must:invest at $1 million U.S. (or $500,000 in certain highunemployment zones)create at least 10 full time positions for U.S. workers (notincluding the investor or relatives)play an active role in the enterprise (which can be just aboutany legal business)prove two years down the road, to get the final approval, thatthe requirements were indeed metA little history: when the Immigration Act of 1990 was passed, manyof us hailed the new EB-5 as a potential landmark in U.S. immigrationhistory. By combining a substantial investment with PROVEN jobgeneration, two social purposes were met: the very tangible creationof jobs, as well as the more esoteric but potentially farther reachingstimulus to bring foreign dollars to the U.S. (As long timeimmigration watchers know, there are two seasons for U.S. immigration:high demand and higher demand. When the global economy is strong, theappeal of a fresh start in the U.S. is attractive. When the globaleconomy is unstable -- as it is at the time of this writing -- the U.S.is usually the safest place to be. Nowadays, not even Japan offerseconomic peace of mind to outside investors.) Naysayers complainedthat Congress had "sold out" and was "selling" U.S. residency to therich. However, with an annual cap of 10,000 visas, that would meanan average of 200 new millionaire families in each state, a hardlythreatening proposition by anyone's standards. Even those opposedadmitted that their opposition was philosophical...So the law passed, and as I've written in prior www.usvisanews.comarticles, those of us whose practice focused on business immigrationscrambled for those "few" 10,000 visas. The expectations of animportant new immigration mechanism, however, were quickly shatteredby INS rulemaking. In their admittedly important effort to insurethat investment funds were not drug profits, the INS rules createdan unparalleled level of disclosure...exactly what an intelligent,offshore-investing international investor DOES not want to hear.To the INS, disclosure meant absolute disclosure, and the nuancesand reality of international tax treatment never entered anyone'smind. Accordingly, an investor had to make a choice: disclose ALLoffshore accounts and interests and risk a multijurisdictional taxnightmare despite the finest in tax planning, or forget the EB-5altogether. As you can imagine, a collective "cry heard 'roundworld" was bellowed from Price Waterhouse offices all over theplanet, and clients were sternly advised: if your immigrationlawyer releases all this information that is none of the U.S.Government's damn business, you risk accusation of tax avoidancein [insert just about any tax jurisdiction, offshore or otherwise,here.]And so the potential EB-5 investors scattered like flies, leavinga few hundred diehards per year to apply. (At the time of thiswriting, I don't know the most recent figures on EB-5 applications:however, they continue to be a tiny fraction of the 10,000 allowedannually.) I moaned and groaned about the problem, but Congresshad moved on to other issues. I suggested alternative ways ofverifying that the funds were not linked to criminal activity(Interpol and FBI searches paid for by the EB5 applicant), but noone really cared. Instead, business immigration attorneys did whatthey always do when a perfectly viable immigration mechanism isrendered impotent by poorly thought out government intervention:they looked for alternatives.The alternatives included -- and include -- the L-1 (since many ofthese investors have active companies overseas) and the E-1 or E-2(since many of them come from countries with U.S. bilateral treatiesof commerce and trade.) But these options were merely non-immigrantvisa mechanisms, and many of these investors wanted permanentresidency. So the "creative lawyering" began. Using a foundationbased upon the Immigrant Investor Pilot Program -- where certainregional investment projects could preregister for interested EB-5investors -- a hybrid investment vehicle was incarnated, in variousforms, by "investment companies" pooling funds. Those of withestablished investor visa practices were essentially assaulted withpropaganda from these enterprises. Here is the general way theywere SUPPOSED to work:the investor placed an amount -- sometimes less than $100,000 --into a guaranteed escrow accountthe investment company leveraged the invested pool created byinvestors and obtained additional debentures, bonds, whatever,making up the balance of the requisite investment.the initial EB-5 would be approved for the investor and familyafter the removal of conditions two years later, the EB-5investment could be liquidated and the money "invested"returned, less fees, commissions, etc.I'm no psychic and I am often accused of trying unusual structuresin visa cases, but I felt very uncomfortable with the concept.Reasons:the total "at risk" investment statutorily required was nevermet...the $1 (or half a) million never was invested.if there was a "money back guarantee", how could theinvestment be "at risk"?!if the qualifying investment amount was "mortgaged", how couldthat meet the limits defined in the final EB-5 regs on pointand....the EB-5 requires an "active" investor; how could theseprograms, "hands off" by design, be active within the meaningof the law?I was reassured repeatedly that they had addressed all this, that theEB-5 petitions were being approved. After a while, I got curious,asked for proof, and a Florida company with this program gave me proofpositive in the form of INS approval notices! Indeed, perhaps I hadbeen a bit literal in my reading of the regs...Not so fast. It took a few years, but the INS finally read its ownregulations and came to the same conclusion I had: these investmentstructures did not meet the capital requirements, were not at risk,and were definitely not "active" within the meaning of the law.(Outraged, these well financed companies are mounting an aggressiveappellate campaign, but our phones were ringing off the hook whenthe denials for the removal of conditions based on the foregoingstarted coming in. To their credit, some of the companies --including the Florida based entity which has so aggressively courtedme -- actually reimbursed clients fully for the two year oldinvestments.)[ AN ASIDE: one of. the most perplexing angles on this was the mistakenbelief on the part of the companies "recruiting" well-known businessimmigration firms that we were this natural funnel of business forthem. As I told more than one smiling salesman, our EB-5 clients arenot rich yahoos trying to find a place to park their money! As arule, they are sophisticated business men and women looking to U.S.Immigration for a variety of business and personal reasons. I haveYET to have a millionaire arrive at my door with "Gee, Jose, I haveall this money and no clue what to do with it"...I admit, it would befun...:-) ]So where do we stand now? Well, if you know anything about theImmigration appeals process, you know it means years of delay andno real reassurance of success in the end. Worse, after a petitionis denied, your status is not "stayed" pending the appeal. In otherwords, you are not allowed to remain in your current category whileyou pursue the appeal...it's more like "go home" and let your lawyerworry about it. While the information I have received indicatesthat these investment houses are convinced the INS will change itstack and the appeals will be favorable, I don't believe this will bethe case. The said part is that if the INS had properly scrutinizedthese cases and come to this conclusion earlier -- as I did -- then thelives of hundreds of investors and their families would not be inthis situation. But the early approvals -- right or wrong -- fostereda tremendous growth for these companies, as they now had "proof" --again, in the form of actual notices of approval -- that their projectswere working. Unfortunately, these folks are now caught in theuncertainty of legal wrangling and the appeal process.Many firms continue to offer similar investment programs and, exceptfor the clearly qualifying, pre-INS-approved designated Pilot Programswhere minimum investment thresholds are required, I advise all ourclients against participation. When I DO get a client waffling aboutthe nature of the contemplated EB5 investment -- "Jose, I'm not sure ifI'll do the hotel in the Keys or the car dealership or the whatever"-- I give them the same advice: follow your heart but use your head.Analyze the potential of the contemplated business- whether brand newor purchase of a going concern- with your CPA sitting by your side.Crunch the numbers and spend a few thousand bucks on a good marketsurvey. Then, if all of that is okay, follow your dream. If thatbed and breakfast for German tourists visiting St. Augustine is yourdream, go for it. If you think your Mom's recipe for creme cheeseflan is the greatest thing since peanut butter, market it. Just makesure you understand the financial risks and are willing to accept them.If so, love of your business and a sincere desire to learn and growwith your new U.S. enterprise will be the greatest asset you bring tothe table. Enthusiasm is contagious, and you have to be excited aboutfar more than the prospect of U.S. residency. You have to be preparedto labor and sweat over your new "baby", and many of the folksconsidering EB-5s are well off and comfortably retired in their homecountries...are you sure you are up to building ANOTHER empire in anew, unfamiliar business culture?I'll be honest with you: when we get our 5 or 6 potential EB-5s permonth, I explore L-1 possibilities. If they are good, I almost alwaysgo that route. If they are childless or "empty nesters"- kids over 21and gone- I may recommend E-1 or E-2 since they are, for practicalpurposes, "permanent" in the sense that there is no limit to the numberof years in which you can remain in the category, as long as thebusiness is prospering. (Besides, if they are planning to have kids,they will probably be born in the U.S. and be U.S.citizens anyway!)But there are a few folks- the ones with a clear business vision...the ones for whom the risk of the investment is justified by thepotential economic rewards...the ones whose kids are teenagers andgetting close to 21- for whom the EB-5 is still the finest mechanismaround. Provided the investment is sound, makes sense, and is bothfinancially and operationally structured to address both the statutoryAND regulatory language of the law, we can definitely get theapprovals for the EB-5. Unfortunately, what was supposed to be a newavenue for entrepreneurial immigrants has turned into an elite clubfor those willing to jump through the unneeded hoops created by theINS.If you are interested in exploring the feasibility of an EB-5immigrant visa structure for you and your family and have the meansto invest the threshold amount, please email your questions directlyto me at:jlatour@latourlaw.com [UPDATED] Please slug the subject line "EB-5 INQUIRY FOR JOSE" so it does notget filtered. (I'm not elitist in answering email...it's just thatEVERYBODY sends everything to me and not one of the 13 others theyactually need to speak to :-] )Hope this was educational! JosePLEASE NOTE: THEINFORMATION CONTAINED IN THIS ARTICLE IS BASED UPON THE LAW,TERMINOLOGY, AND EB-5 SITUATION AS OF 1998. IT IS NOT CURRENT INFORMATIONAND SHOULD NOT BE RELIED UPON FOR VISA STRUCTURING PURPOSES!! Posted by
Pt. 3- Dr. José Manuel Pallí Examina la EB5: No Hay Mal Que Por Bien No Venga
Part 3 of the article writtenby José Manuel Pallí. Parts 1 & 2 were posted in the past two days.LA TRASTIENDA DE LAS VISASEB-5 Por José Manuel Pallí El Centro Regional de mis sueños sería aquel capaz decrear el modelo de inversión más conservador y prudente pero que aún así conserve las características que hacen riesgosaa la inversión del extranjero solicitante de la visa (poner el dinero en riesgoes uno de los requisitos del programa para visas EB-5), lo que implica reconocerque no estamos buscando una inversión de diseño convencional, sino unainversión enfocada en un objetivo central: la obtención de la visa de residentepermanente en USA.[1] Cuales son los parámetros que yo le aplicaría a esadiligencia o búsqueda?El elemento imprescindible que necesito tener enfrentepara hacer el análisis que tengo que hacer son TODOS los documentos a través delos cuales habrá de implementarse mi inversión, así como toda la documentaciónfinanciera del vehículo (Sociedad o entidad corporativa) a través de la cual secanalizará la misma, y tambien la correspondiente a todas las otras entidadesrelacionadas con la inversión. El Centro Regional que no me permita el acceso atodos estos documentos sencillamente no merece mi tiempo (ni que hablar de midinero). Una vez que tengo en mis manos toda esa información, hayciertas preguntas claves que tendré que hacerme (y que hacer) hasta tanto noconsiga una respuesta plenamente satisfactoria para cada una de ellas: (i) A quien le estoy prestando mi dinero, o bien en que estásiendo invertido ese dinero?.(ii) Que tan segura o resguardada estará mi inversión, y porque?(iii) Cual es la proyección total de costos y de gastos delproyecto en el que está siendo invertido mi dinero? Que protección tengo ante un eventual aumentoinusitado de esos costos y gastos, y que posibilidades hay de que ocurra unaumento como ése?(iv) Quien sera responsable de reintegrarme los fondosinvertidos? (está estipulado así en los estatutos de la Sociedad?) De donde sesupone que salgan los fondos para reintegrarme el dinero invertido?(v) Que tanta rentabilidad puedo esperar de mi inversión ycomo me serán abonadas esas utilidades? Quienes manejarán mi inversión y cuales su historial de éxitos o fracasos?(vi) Que tan riesgosa es la inversión y que es lo peor quepudiera ocurrir? Que previsiones ha tomado el Centro Regional para el caso deque ocurriera lo peor?(vii) Que tipo de evidencia presentará el Centro Regional parademostrar la capacidad para generar empleos del proyecto en el que estará invertidomi dinero al momento de presentar mi petición (planilla I-526)?(viii) Son sólidos y definitivos los planes para la realizacióndel proyecto en el cual estoy invirtiendo? Que posibilidades hay de que elCentro regional necesite modificar esos planes? [2](ix) Cuantos proyectos presentados por este Centro Regionalhan recibido la aprobación del Departamento de Inmigración? El proyectoespecífico a donde ira a dar mi dinero, ya ha sido aprobado? Existen básicamente dos grandes modelos de inversión enoferta a través de los diversos Centros Regionales: uno consiste en que elextranjero haga su inversión a través de una participación (equity investment) enuna compañía o empresa recientemente creada, y el otro se basa en utilizar eldinero invertido para financiar, a través de un préstamo, las actividades de lacompañía o empresa en cuestión. Este segundo modelo, el del préstamo, pareciera ser elque mejor se presta para que el inversionista extranjero cuente con unaefectiva estrategia de salida, especialmente si el Centro Regional en cuestiónsolo utiliza una fracción del dinero del inversionista para financiar elproyecto a través del préstamo. Esto se logra cuando el Fondo regional no es laúnica fuente de financiamuiento, sino que actúa conjuntamente con otras (comopudieran ser dineros públicos, excenciones fiscales, u otros inversionstas de caracterprivado) apoyando, por ejemplo, iniciativas fomentadas por los gobiernos parapropiciar el uso de fuentes alternatives de energía, obras de vialidad públicau otras obras de infra-estructura. La “salida” es más fácil porque no conllevala necesidad de liquidar una inversión (o una participación en una inversión)para la cual pudieran no haber “compradores”. Asimismo, y en lamedida en que la inversión se canalice a través de agencias estatales (ypara-estatales) o gubernamentales, según sea la naturaleza del proyecto onegocio, éste modelo del préstamo se presta para que el inversionistaextranjero pueda hacer él mismo y por su cuenta una evaluación exhaustiva delproyecto y de su inversión. Esto es así porque ése tipo de entidades tienen laobligación de hacer públicas y transparentes sus finanzas y sus actuaciones. También existe la percepción, avalada por los hachos, deque éste tipo de actividades o proyectos en apoyo al interés público son, porlo general, una mejor y más confiable fuente de generación del número depuestos de trabajos que el inversionista necesita generar para que le den laresidencia permanente. Todas estas cuestiones e interrogantes deben ser parte del procesodecisorio, pero ninguna de ellas es más importante y transcendental que ladecisión de dejar el país de uno. Por eso nosotros, así como no damos asesoríafinanciera, tampoco promovemos éste recurso que es la visa EB-5 para radicarseen los Estados Unidos. Todo lo que pretendemos es darle a quienes toman esadificil decisión toda la información y las herramientas que necesitan paraimplementarla con éxito. [1] Por eso es ridículo el argumento de quienes sostienen que, en el peor delos casos –es decir, si no se obtiene el resultado querido, que es laresidencia permanente en USA- el extranjero inversionista igual habrá hecho unmagnífico negocio en una inversión de alta rentabilidad. Este argumento esfrecuente cuando la inversión del extranjero se aplica a un desarrolloinmobiliario. Los desarrolladores inmobiliarios, que ya llevan más de dosaños practicamente sin acceso alcrédito, se han volcado a éste recurso de oxígeno alternativo que son losCentros Regionales. Pero ni todos los desarrollos inmobiliarios son “magníficosnegocios” –por eso no consiguen que los bancos los financien como lo hacíanantes-, ni aún el mejor de los negocioscomepensaría, probablemente, el impacto en la situación familiar del inmigrantefrustrado, el disgusto que significa tener que desandar el camino yatransitado. [2] UnCentro Regional que se vé obligado a alterar los planes del proyecto en el cualse invierte el dinero del inversionista -planes que aparecen descritos en la documentación que acompaña a lasolicitud de visado- puede hasta perder su acreditación o reconocimiento comoCentro Regional.
Pt. 2- Dr. José Manuel Pallí Examina la EB5: No Hay Mal Que Por Bien No Venga
Part 2 of the article writtenby José Manuel Pallí. Part 1 was posted yesterday, May 25 and Part 3 will beposted tomorrow, May 27.LA TRASTIENDA DE LAS VISASEB-5 Por José Manuel Pallí La idea detrás de éste programa que reduce a la mitad –deun millón de dólares a medio millón- el monto de la inversión que el extranjeroque solicita un visado EB-5 para residir permanentemente en USA debe poner enriesgo, es facilitar el cumplimiento de uno de los requisitos claves para laobtención de la visa: la comprobación de que un mínimo de 10 empleos o puestosde trabajo han sido creados por dicha inversión.La preocupación en cuanto a la efectividad de éstemecanismo pasa por dos vertientes. Una es la posibilidad de que, aúnsatisfaciendo cuidadosamente todos los requisitos que la ley migratoria exige,al finalizar los dos años que deben transcurrir desde la aprobación inicial deltrámite –que se inicia a través del llenado de la planilla I – 526- laadjudicación de la visa al inversor extranjero –una vez presentada la planillaI – 829- le fuera denegada, por razones completamente ajenas a su diligencia ya sus esfuerzos (por ejemplo, por que su inversión no generó suficientespuestos de trabajo). La otra, que las sumas de dinero a arriesgar eranconsiderables, lo que podia aumentar, también de manera considerable, el númerode gentes sin escrúpulos que se sintiera atraída por éste nuevo negocio de losCentros Regionales. Pero, para mí, tanto entonces como ahora, esos dosargumentos solo eran capaces de disuadir a quienes sienten un mayor grado deaversion por el riesgo que yó: si quiero obtener la residencia permanente enUSA y tengo el capital necesario para que mi petición de visa EB-5 sea aprobada,buscaré al mejor de los Centros Regionales (hoy ya existen cerca de 80autorizados) e invertiré mi dinero en aquel programa que me ofrezca (i) mejoresperspectivas de cumplir con el requisito relacionado con la empleomanía [1], y (ii) mejores garantías de que mi inversión,una vez cumplida su función generadora de empleos, me será devuelta en untiempo prudencial. Lo que tengo que tratar de evitar a toda costa es entregarlemi capital a algún “sanatero” (ver nota al píe # 1), y es aquí donde viene a colación mi largopreámbulo y donde encontramos la explicación al cambio de opinión de mi primo ytocayo. Hoy, después de casi 20 años de experiencia con ésteprograma de Centros Regionales, es posible encontrar alguno de ellos que ofrezcalo que un iversionista bien avisado debe exigir. Pero la búsqueda la debe haceruno mismo –o con la ayuda de alguien de extrema confianza- para no depender delas autoridades que regulan la oferta de instrumentos financieros, ni de lasempresas calificadoras, ni de las buenas referencias sobre gente que uno noconoce .[2] La “crisis” desatada durante los últimos tres años nosregala ésta oportunidad de entender a cabalidad la necesidad de tomar el toropor las astas y convertirnos a nosotros mismos en nuestros propios asesoresfinancieros –en ésta y en muchas otras situaciones-, sin temerle a nuestrassupuestas limitaciones. Es solo cuestión de ponerle manos a la obra. [1] Invirtiendo el dinero a través de unCentro regional autorizado, las posibilidades de cumplir con ése requisitoaumentan, pues se pueden contar los empleosindirectos que se crean a través de la inversión –los que no tienen unarelación de dependencia con la nueva empresa comercial que recibe la inversión,pero que se crean como consecuencia de la existencia de dicha empresa, como serlos proveedores de la misma, por ejemplo-, y también los inducidos –que son los empleos que se crean en los comercios oservicios donde los empleados, directos e indirectos, que genera la inversiónvan y gastan el resultado del incremento en su poder adquisitivo. La importancia de éste rubro de los empleosinducidos en una economía de consumo como la de USA es muy grande, al extremoque, no hace mucho tiempo, un presidente de la Nación que le dío al pueblo unarebaja o recorte en sus impuestos, no pudo con su genio y en el acto pasó arecomendarles qué hacer con ese aumento inesperado en su poder adquisitivo:“Ahora vayan y gasténselo rápido”…[2] La ineptitud e ineficacia de los entesreguladores quedó en evidencia en todo el mundo, de las empresas calificadorasmejor ni hablar, y de nadie en la industria financiera hubiéramos recibidomejores referencias que si las hubiéramos pedido (a cualquiera de los muchos“expertos”) sobre Bernie Madoff. Por eso muchos inversores sofisticadosdesconfían de todos esos recursos y se dedican a hacer lo que se llama “shadowrating”, analizando y calificando ellos mismos sus futuras inversiones.
Dr. José Manuel Pallí Examina la EB5: No Hay Mal Que Por Bien No Venga, Pt.1
This article was written by José Manuel Pallí, my cousin, colleague and friend. José Manuel's eloquence in Spanish, along with his distinctly pragmatic understanding of the choices faced by prospective immigrant investors, uniquely qualifies him to examine the EB-5 Regional Center visa at a deep level and, for the very first time, in Spanish. Thanks, Primus! [Parts 2 and 3 will be posted Weds. and Thurs. FYI, so stay tuned!]LA TRASTIENDA DE LAS VISAS EB-5 Por José Manuel Pallí Las circunstancias adversas por las que ha atravesadodurante los últimos tres años la economía (la del mundo todo, peroespecialmente la de USA) en general, y nuestro tan cacareado sistemafinanciero, en particular, nos han llevado a muchos a cambiar nuestrosparadigmas, cuando no nuestros modelos negociales y hasta nuestros estilos devida. Llevo más de treinta años residiendo en USA y casiveinticinco ejerciendo como abogado en la Florida (despues de ser abogado en laArgentina), y, a pesar de haber tenido numerosísimas oportunidades (y pedidosexpresos), jamás le he recomendado a nadie qué hacer con su dinero, dondecolocarlo, en qué invertirlo. Entre los muchos paradigmas que se han venido abajoestrepitosamente en los últimos tres o cuatro años, se incluye el que meinvitaba a reflexionar y a ser extremadamente reticente a la hora de jugar alasesor financiero: “zapatero a tus zapatos”… “Yo, abogado…”, me decía (y medigo) siempre a mi mismo cada vez que caía en esa tentación… “Yo de eso no sénada…”, o bien, “ Eso es para los que saben…”[1] Pero el paradigma se viene abajo justamente cuando quedaplena y fehacientemente demostrado que, a la hora de dar asesoramientofinanciero, nadie parece saber nada... La debacle del mundo financiero ha dejado al descubiertoun sinnúmero de errores (u horrores) de “criterio” –si, lo sé, a esta altura delos acontecimientos suena como un oximoron lo de “bancos de inversión”concriterio- que van desde la pretensión de que una cantidad de jovencitos –noimporta qué tán brillantes- recién salidos de la Universidad (muchos de ellossin haber estudiado finanzas, sino cualquier otra carrera) estén en condicionesde decirle a nadie qué hacer con sus ahorros, hasta la promoción y venta denuevos productos e instrumentos financieros que nadie –ni siquiera susdiseñadores, ni mucho menos las llamadas empresas “calificadoras”- entiendecomo funcionan ni que riesgos conllevan. Pero el paradigma sigue siendo válido en tanto sigue siendoválida la admonición de mi padre cuando una vez, hace muchos años, le preguntéque le parecía si les preguntaba a algunos amigos y socios suyos si queríaninvertir conmigo en un proyecto inmobiliario aquí en Miami: “ni de vaina!!!”,fué su respuesta inmediata. Y eseprurito subsiste, de modo que no se asusten: sigo sin hacer recomendaciones denaturaleza financiera, y, lo que es tanto o más importante, sin aceptar las deterceros. Por qué todo éste larguísimo preámbulo? Sólo pretendíapreparar el terreno para lo que viene: mi re-encarnación como administrativista(abogado especializado en el análisis y en la obtención de ciertos actosadministrativos por parte del estado) después de haber sido, por más deveinticinco años, un abogado especializado en derechos reales (lo que no quieredecir realista) o “property law”, y en las seguridades que uno debe procurarcuando se invierte en bienes de esa naturaleza, especialmente los inmuebles. [2] Y es que hace cuestión de una semana, se me acercaron unpar de clientes latinoamericanos para consultarme sobre un tema que tiene quever con inversiones, pero, y sobre todo, con la vocación por migrar hacia éstegran país que es USA. Por muchos años, y casi automáticamente, todo lo quellega a mí y que tiene alguna relación con el llamado “Immigration Law” oDerecho Migratorio va a parar al escritorio de mi primo José Latour. Y en éstecaso, la naturaleza de la consulta –y la confusion reinante en la mente y elespíritu de uno de esos clientes, a raíz de una consulta anterior con otrocolega- presagiaba una suerte de callejón sin salida, pues por anterioresconvesaciones con “el primo genio” [3], sabíaque el visado de inevrsionista (EB-5) para inmigrar a USA canalizando lainversión a través de los llamados Centros Regionales (Regional Centers) no erabién visto por él. Grande fué mi sorpresa cuando encontré a mi tocayo muchomás tolerante y hasta entusiasta con respecto a éste tipo de visados que hacecerca de 18 años, cuando se instituyó el Programa Piloto de Centros Regionales.Recordaba que tanto el como otros buenos abogados de inmigración dudaban, porentonces, de la eficacia de éste mecanismo. Dudas que yo mismo le habíatransmitido a varios de mis clientes.[1] O los que hablan y escriben como sisupieran. En la Argentina hay un viejo dicho que reza “el ‘sover’ no ocupalugar”, que juega con la versión original (el saber no ocupa lugar) pararesaltar la importancia (y peligrosidad) del “sover” –o verso, lo contrario a la prosa , pero que en éste caso refleja, másque lirismo, un amañado estilo de expresarse que mezcla medias verdades coninterpretaciones absurdas y estupideces lisas y llanas. El objetivo es crear lasensación que uno sabe tanto que el otro no entiende lo que uno dice, al tiempo que se intimida aese otro de manera tal que éste opta por proteger su ignorancia con el silencioy la aprobación tácita. En la Argentina,éste estilo también se conoce como “sanata”, o “biri, biri”. Es, precisamente,el estilo que utilizan, por ejemplo, las empresas calificadoras para redactarsus “investor reports”… [2] Aquí en la Florida llamamos “dirt lawyers” a los abogados que se dedicana los derechos reales, sin que nadie se ofenda[3] Así lo llamamos, cariñosa y más quejustificadamente, en familia.
EB5 Investing: the Devil is in the Details
One of the greatest challenges in helping prospectiveforeign investors understand the EB-5 regional center investment opportunitycenters around the linguistic issues associated with translating what isinvariably some highly complex language. Let's face it: this is some complicated stuff. When I sit down with a fellow AILA member todiscuss their potentially interested EB 5 investor, it typically takes me abouttwo hours to take the attorney from a rudimentary understanding of the regionalcenter EB-5 process to a meaningful grasp of its finer details. You can understand why my having to explainthis to a non-attorney in a language other than English is perhaps the mostdifficult part of my job.The EB-5 regional center with which I work is, I believe,the most transparent and prudent EB5 immigrant investor opportunity outthere. They've spent a great deal oftime and money to prepare documentation in various languages so that they canconvey the details of the program to prospective investors overseas who do notspeak English. Still, despite their bestefforts at selecting qualified translators, the intricacies associated withboth the investment and immigration aspects of the EB-5 are such that evenfairly accurate translations tend to miss the subtleties and nuances which, inand of themselves, provide the "big picture" needed before a rationalperson is willing to plunk down a half million dollars. (It is notable that in the Far East,particularly China, this issue is substantially tempered; perhaps for culturalreasons -- certainly not because the Chinese investor is any less concernedabout his or her investment than an investor of another nationality -- or perhapsdue to a pragmatic understanding of the value of a clear path to US permanentresidency, the Chinese EB-5 investors tend to commit more rapidly to aparticular regional center, most often without an in depth understanding of theparticular investment program to which they are committing.).But here's the problem:every single regional center out there has been APPROVED by the USgovernment... otherwise they would not be legally able to market to prospectiveinvestors! The product of a consumersociety, where, historically, he who markets best wins the most, the reality isthat there are some pretty lousy regional centers out there with some ratherimpressive marketing materials. Andthat, my friends, really concerns me.I've written many times in the past about how those of uswho are immigration practitioners are hardly qualified to recommend an EB-5 programbased upon its merits as an investment; sadly, that which we ARE qualified torecommend and opine upon -- the long-term immigration feasibility of aparticular EB-5 regional center -- requires a tremendous amount of time andeffort by those of us who present these opportunities to foreign clients. My impression is thatmost immigration practitioners not only fail to provide that level of requireddetail to their prospects, but, far more tragically, they simply are notinterested enough to learn the details themselves. Posted by
Venezuela: Daring to Disrupt
When you think about it, there are very rational reasonsbehind the truism that the squeaky wheel invariably gets the oil. In fact, but for the acoustic disruptiontriggered by said wheel, the bearings would silently grind down and bring the wholemovement to a standstill, without warning. The disruptive squeak serves as notice that something is amissand permits the possibility of corrective action by an attentive listener.Today, in Caracas, Venezuela's squeaking is loud and clearto me. As I meet with successful business person after successful businessperson to discuss investment-based immigration, the growing concern over thecurrent political and economic climate becomes increasingly obvious. Theunderlying vibe of "let's see what happens" which permeated last year'sEB 5 one-on-one meetings has gradually shifted toward a quiet murmur of deepconcern. And while as an immigrationattorney this shift may well mean more business for me, I have known and lovedVenezuela for many years, so I share their concern.The irony is that my professional friends here are all quitebusy and doing very well. The island ofMargarita is booming with new construction; industry is busy, and the malls arepacked. In fact, to the naked eye, theVenezuelan economy appears more robust than that of the US. But no matter the riches of this lush andbeautiful country, nor the diamonds and petroleum enriching its soil, thedisruptions which lead to the squeaking of the wheel serve toundermine the perceived affluence of an economy, and the world's confidence in it.Both the government and the private sector are populated bystrong and charismatic leaders with a deep abiding pride in the historicalentrepreneurship and democracy of Venezuela. Disruption -be it via social reforms intended to spread a nation's wealth or via the steady flow of new technologies, methods, and out-of-the-box ideas which fuel the growth of any market economy - is part and parcel of the cultural and economic evolution of every nation. As a "serial disruptor" whose professional career has been defined by my unconventional approach toward investment-based immigration, I appreciate the fact that without such change, stagnation is inevitable. For Venezuela, the challenge is to channel the disruptions in productive ways which can restore the confidence of its people, trading partners, and neighbors. It is my sincere hope that as I begin my third decade of helpingVenezuelans invest in the United States, said investments will be driven by entrepreneurial zest over the abundant opportunities to be found in the topsy-turvy USeconomy, and not by the ever-louder squeaking of the wheel which they fear justMIGHT run them over.
Investors in the U.S.
Understanding Venezuela's Prospective EB5 Investors
As I sit at the gate waiting to board for Caracas, I'm remembering the rules I have learned from my most recent trips to Venezuela to visit clients and prospective clients.Don't wear anything red unless you want to be perceived as a supporter of the governmentDon't pay for anything with your credit card unless you want to spend $500 on dinner; let your local clients invite you and square up laterDon't take a taxi except from the safe hotel where you are stayingCarry an extra wallet and cheap cell phone in case you are mugged; they are the sacrificial lambs.Stop expressing surprise every time you realize that despite all the politics, crime, and problems, you are actually visiting a petroleum-fueled economic hot zone where an awful lot of people are living pretty good lives.So the good watch is at home and the $10 one is on my wrist, a client is picking me up at the airport when I land, and I'm staying at the same massive, effective, and overpriced hotel...again. If it ain't broke, why fix it?As I take my show on the road again, it is notable that Venezuelans are in so many different ways distinguishable from my other prospective EB5 Investor clients, who are eager to move to the U.S. ASAP. Most Venezuelans, it appears to me, want the prospect of U.S. permanent residency as a sort of "Ace-up-the-sleeve, Plan-B" solution for a "someday" which may never come. The truth is simple in Venezuela: if you can afford to invest $500,000 in and EB5 visa to get you and your family U.S. residency, you are probably living extremely well...and reexamining your thoughts about the mighty Green Card.I suppose that last thought applies to EB5 investors from anywhere except perhaps Europe, where the line between the privileged and the underprivileged is more blurred than it is in developing nations populated by distinct "haves" and "have nots".In talking to wealthy prospects, I am often asked this question: "Jose, look at my life here...why on EARTH would I want to leave this to join the U.S. Rat Race"I can't answer except to tell them that I'm going on year two of fighting for the Spanish passport to which I am entitled by virtue of my Barcelona-grandfather...even though I doubt I will ever live in Spain.I guess it is just my own "Ace-up-the-sleeve, Plan-B" solution for a "someday"... which may never come.
Latour en Caracas para Citas de EB5: Mayo 17-19
Of Sheep and EB5 Regional Centers
"If You Build it…They Might NOT Come".... -paraphrasing the line from Field of Dreams Sheep mentality is a terrible thing. It is something thathas plagued mankind since the earliest written records, something which seemsto be more a byproduct of fundamental human emotional patterns than the resultof consistently flawed intelligence.Recently, we have seen sheep mentality - and it's closelyrelated cousin, greed - destroy our real estate markets, compromise theintegrity of our banking system, and wipe out what was left of our already shakyfaith in Wall Street. Today, a smug self - congratulatory European Union isbasking in their "decisive" decision yesterday to inject nearly $1trillion into the Euro economy, in the name of saving the Euro, Greece, and allthe irresponsible megabanks throughout Europe who stupidly continued topurchase Greek sovereign bonds despite the litany of economic warnings,catastrophes and indicators which have been obvious to all for the past decadeor more. All of these unfortunate catastrophes have one thing in common: theypermit the "sheep" to walk away unscathed, while the collectiveirresponsibility of poor financial decision-making is borne by the totality ofthe population.I've written about this before as it relates to theastonishing number of EB 5 regional centers which have been filed and approvedin the past year. I've also told you about the "cottage industry" ofattorneys who, like myself, knew comparatively little about the GOOD, new-generation EB 5 regional centers but who now profess to be "experts"and are aggressively marketing their "regional center formationservices" to cash-strapped developers everywhere. Not a week goes by whereI am not contacted by someone looking for "EB 5 money".Yesterday, I was contacted by an old friend, precisely aboutthis subject. My friend is a veteran real estate investor who well understandsthe vagaries plaguing our current economy. Still, word gets around, and thenotion of setting up an EB 5 financing mechanism seems to be spreading throughthe development community in the United States with the eye-popping speed ofa South Florida Ponzi scheme.Getting a new regional center approved isn't the hardestthing in the world; establishing one that meets the complex criteria which bothsatisfies statutory requirements AND provides the foreign investor with acomparatively safe investment vehicle to his or her permanent residency IS. As the numberof approved regional centers continues to go up, the irony is that it gets thatmuch easier to separate the proverbial wheat from the chaff. Sift wisely.
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