Why Should Someone Seek Professional Assistance In EB-5 Due Diligence?


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Why Should People Give Consideration To One Of The Many Independent EB-5 Due Diligence Sources Out There?

Specifically because they are independent. In other words, they go through a number of projects and the ones that Attorney Mark Ivener has worked with in the past pass on a number of them, and they have well-reasoned, documented reports that aren’t the ones that they ultimately put their name on because this is all based on their security’s license.

They are obligated under law to do this, and the some have done extremely complete reports and if somebody happens to have a question that isn’t covered there, they would ask that. But most are looking for the ultimate conclusion.

Of course they read the reports and make their own decision, they are looking for someone to make a recommendation and a large percentage of clients ask their lawyer, “Which one do you recommend? You’re in the business, you’ve seen all of them.”

To answer that, firstly, a lawyer hasn’t seen all of them and second of all, if lawyers were making an investment in these projects, they would do their own independent due diligence. Any attorney like Mark Ivener is not a financial analyst, and has nothing relevant under his purview of expertise. And even if it was, it’s you as the investor who would be putting the money in, who has to make that decision.

How Does Attorney Mark Ivener Ensure EB-5 Due Diligence Has Been Done Prior To Someone Applying As An Investor?

First of all, he can’t ensure that they do it. He gives them the option, whether they have or they haven’t.

If it is a situation which hasn’t happened recently, he can answer the question based on his own experience and that is that if he sees someone who he doesn’t feel has had real experience in analyzing and is just going through what the regional center tells them, then he’ll talk to them again and review every reason that he’s gone over as to why it’s worth it for them to either go through a broker dealer.

In case they have decided that they want to make the investment and not go through a broker dealer, and do a pay for a financial analyst, at least the attorney will confirm that in writing that he made the second recommendation so that is down on paper. Ivener has done this twice and they decided to use their own business common-sense to make the decision and their money.

What Is The Hotel Project In Chicago And Some Other Examples Of What Might Happen If You Don’t Have Due Diligence When It Comes To The EB-5 Investment?

A few years ago, there was a hotel project in Chicago where actually Immigration got fooled; the investors got fooled where they had a letter from a major hotel brand on their letterhead saying that they had committed to do a hotel on this particular property; they had a letter from a Middle East government on the government’s letterhead saying that they would finance part of it.

Ultimately, once the GEC got involved, it turned out that both of those letters were not true. Had someone done their own due diligence and checked on both of those, immigration didn’t; they just took at its face value but they would never do that again. Then, they would have found out that both of those were fraudulent. So, that’s a really exaggerated example.

It goes how simple it could have been and it could even had to have someone who is doing a due diligence, the investor could have done that by herself.

Going through on that case, could that be that the GEC got involved, people did get their money back at least the $500,000. It is not sure whether they got all of their administrative feedback because that went to the developer and there is a criminal prosecution going on or will go on relating to the regional center owner.

But on a lesser type of case, there have been number of situations where the financial backing on the project wasn’t there and that could have been discovered through the financial due diligence or through a broker dealer.

Again, it all adds up to facts that this is extremely important, it’s probably less important if it is an older established regional center that has a substantial track record. It is more important to do on a newer regional center.

That’s a pretty wild but scary example and it was scary for the investors as well.

Where Can Someone Get Information Regarding EB-5 Due Diligence?

If someone wanted to go to Attorney Mark Ivener’s website, they would find the regional center due diligence for investor 2-page questionnaire on it and they could find that on their own and have that as a beginning point.

If you need Assistance With EB-5 Due Diligence, call the law office of Mark Ivener for a free initial consultation at (310) 477-3000 and get the information and legal answers you’re seeking.

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