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USCIS Unveils Stricter Sanctions and Penalties for EB-S Program Violations · IMI Podcasts

• 0:00
  SPEAKER_00: U.S.
• 0:00
  SPEAKER_00: Citizenship and Immigration Services issued new policy guidance on July 16th, addressing noncompliance and sanctions under the EB5 program.
• 0:10
  SPEAKER_00: The updated policies in Volume 6 of the U.S.
• 0:14
  SPEAKER_00: CIS Policy Manual incorporate statutory reforms included in the EB5 Reform and Integrity Act of 2022, which took effect on March 15, 2022.
• 0:26
  SPEAKER_00: The policy alert explains that, quote, the reforms add new authority for U.S.
• 0:31
  SPEAKER_00: CIS to sanction regional centers at various levels for noncompliance with statutory requirements, such as paying the EB5 integrity fund fee, end quote.
• 0:42
  SPEAKER_00: The new guidelines interpret these provisions related to sanctions, including terminations, debarments, and suspensions, for noncompliant regional centers, new commercial enterprises, job creating entities, investors, and others.
• 0:57
  SPEAKER_00: The guidance update also clarifies what may be considered threats to the national interest, fraud, intentional material misrepresentation, deceit, and criminal misuse in the context of discretionary determinations that require USCIS to take adverse action on certain EB5 petitions, applications, and benefits.
• 1:19
  SPEAKER_00: It outlines special considerations for good faith pre-RIA investors to retain eligibility under INA Section 208-B5M after USCIS terminates or debars their regional center, new commercial enterprise, or job-creating entity due to noncompliance.
• 1:38
  SPEAKER_00: The RIA authorizes USCIS to levy various sanctions, including suspensions, debarment, and termination, for noncompliance by various participants in the EB5 program.
• 1:51
  SPEAKER_00: If USCIS determines a violation has occurred and sanctions are appropriate, it issues a notice of intent to sanction to the affected individual or entity, including a summary of violations and a description of the sanction.
• 2:07
  SPEAKER_00: USCIS typically provides 80 days for response and may issue sanctions to more than one party or multiple sanctions to the same party for a given violation.
• 2:18
  SPEAKER_00: If USCIS determines sanctions are warranted after considering the response, it issues a final notice of sanction.
• 2:26
  SPEAKER_00: Sanctioned parties may appeal to the Administrative Appeals Office.
• 2:30
  SPEAKER_00: USCIS considers relevant factors like violation history, willfulness, cooperation, management awareness, due diligence, and impact on innocent parties when deciding sanction severity.
• 2:44
  SPEAKER_00: The types of sanctions USCIS levies include the following 1.
• 2:49
  SPEAKER_00: Suspensions.
• 2:50
  SPEAKER_00: Temporarily disallow participation in some or all of the EB5 program for a specified period or until the violation is remitted.
• 2:59
  SPEAKER_00: The scope is determined case by case.
• 3:02
  SPEAKER_00: 2.
• 3:03
  SPEAKER_00: Debarments.
• 3:04
  SPEAKER_00: USCIS interprets its authority to terminate the participation of new commercial enterprises or job-creating entities as equivalent to debarment.
• 3:14
  SPEAKER_00: Permanent debarment may apply to knowing participants in conduct leading to termination or debarment.
• 3:21
  SPEAKER_00: 3.
• 3:21
  SPEAKER_00: Terminations.
• 3:23
  SPEAKER_00: The regional center is no longer designated and may not file project applications or solicit investors.
• 3:29
  SPEAKER_00: Upon notification, investors have 180 days to reassociate to another regional center.
• 3:36
  SPEAKER_00: USCIS denies or revokes approval of an EB5-related petition, application, or benefit if it determines approval is contrary to the national interest for reasons relating to threats to public safety or national security, or if the petition application or benefit is predicated on or involves fraud, deceit, intentional material misrepresentation or criminal misuse.
• 4:01
  SPEAKER_00: Discretion on national interest grounds includes threats to public safety, for example, aggravated felonies, and national security concerns may include activities described in INA provisions related to general security, terrorist activities, or association with terrorist organizations.
• 4:20
  SPEAKER_00: Discretion on fraud and related grounds includes intentional material misrepresentation and knowingly making a false representation or concealing a material fact with intent to induce action or deceive.
• 4:34
  SPEAKER_00: Broader than fraud or misrepresentation against the U.S.
• 4:37
  SPEAKER_00: government, it also includes deceit, intentionally leading another person to believe something untrue, and criminal misuse, improperly using the EB5 program or capital in connection with or furtherance of a crime, most likely financial crime.
• 4:52
  SPEAKER_00: Examples of triggering actions include financial fraud or crimes, falsifying job creation or economic development claims, misrepresenting or omitting required information, falsifying responses to bona fide questions, concealing source or path of funds, presenting false derivatives, and assuming alternate identities to obtain benefits.
• 5:15
  SPEAKER_00: The USCIS revised policies, quote, explain how good faith investors, including those who filed their petitions prior to the new law, may retain eligibility if USCIS terminates or debars the investor's regional center, new commercial enterprise, or job-creating entity.
• 5:34
  SPEAKER_00: End quote.
• 5:34
  SPEAKER_00: The policy update also provides the process and factors USCIS generally considers when assessing sanctions consistent with the plain meaning of the statute.
• 5:46
  SPEAKER_00: The updated guidelines clarify that, quote, USCIS does not sanction individuals or entities for pre-RIA actions, but may still consider significant or recurring pre-RIA violations for the purpose of evaluating the severity of sanctionable post-RIA violation.
• 6:06
  SPEAKER_00: End quote.com.
• 6:23
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• 6:30
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