Okay, in the past week days I've had two existing EB-5 RC clients come to me after hearing flat out lies from securities attorneys attempting to make a fast buck…and today I had a THIRD (prospective) client ask me the same question.
It would appear the latest incarnation of the Man in the Gray Suit (i.e., shark) on the EB-5 scene is The Securities Lawyer, Part II. Now some are pushing a “Reg D filing” fear…when, by DEFINITION, an offering made under the Reg D exemption to 17 CFR § 230.501 is an “EXEMPTION TO REGISTRATION”. Don't believe me? Here's what the SEC has to say: http://www.sec.gov/answers/regd.htm
The only thing an EB-5 funded project has to file is the horrific Form D…but only AFTER investments start coming in. Form D, a pain in the neck 15-pager humorously referred to by the SEC in the above link as a "brief notice" is a admittedly a bear and something for which you SHOULD have a securities attorney — here is the link – http://www.sec.gov/about/forms/formd.pdf
About a year ago, there emerged the barrage of know-nothing deportation lawyers buying "EB-5 expert" Googlewords, next came The Securities Lawyer, Part I (AKA the "I'll be happy to review the PPM USCIS has approved repeatedly for Jose for only $35,000" scumbags)…now this. SHAME on you guys. A qualified Securities Attorney is and should be part of any Regional Center structuring process, and their role is critical. But fear-mongering through the clever manipulation of cryptic SEC terminology in order to trick people into thinking they need your services is not only unethical and a breach of bar rules…it is fraud. Enticing someone into paying you to do something they don't need is FRAUD.
Newsflash to the short-sighted: big, fat, bald-faced lies do not build a law practice.
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