Attorney Vince Lau explains how Jay's Peak developers frauded EB-5 Investors

Summary

In this insightful conversation with Vince Lao of Clark & Lao, the complexities of U.S. immigration visas like the EB-5 and H1B are discussed. Vince explains how the EB-5 visa involves a hefty financial investment to secure a green card through job creation, and the risks of fraud and delays. He also sheds light on the H1B visa process, its demand, and the shift from student visas to work visas, especially in the STEM field. Vince highlights the importance of understanding visa options and encourages exploration of alternative pathways for those considering immigration to the U.S.

Takeaways

• 😀 EB-5 visas allow foreign investors to gain U.S. green cards by investing at least $1.8 million in businesses that create jobs, but there are significant risks, including potential fraud and long processing times.
• 😀 The EB-5 process involves a two-year conditional green card, during which investors must demonstrate the creation of 10 jobs. Failure to do so can lead to the loss of both investment and green card status.
• 😀 The H-1B visa is a popular work visa for individuals with specialized skills, especially in STEM fields. Employers sponsor workers who hold university degrees specific to their job roles.
• 😀 The H-1B visa process includes a lottery system due to high demand, with only 30-35% of applicants receiving approval annually.
• 😀 There is a misconception that the U.S. is overrun with foreign workers due to H-1B visas. However, these workers often have specialized skills and contribute to industries where there is a shortage of local talent.
• 😀 Employers are willing to sponsor H-1B workers, especially those trained in the U.S., to keep them in the country and utilize their skills for the U.S. economy.
• 😀 Many individuals transition from student visas (F-1) to H-1B visas, especially those who have studied in the U.S. and want to stay for work opportunities.
• 😀 Post-doctoral researchers often come to the U.S. on J-1 visas. Some J-1 visas require a two-year home-country residence requirement, limiting the ability to switch to other visas like H-1B.
• 😀 J-1 visa holders can switch to an H-1B visa, but they may be required to return to their home country for two years before applying for another visa, depending on the program.
• 😀 Vince Lao's firm, based in Boston, primarily handles H-1B, student, and family-sponsored visas, while avoiding the EB-5 visa due to its complexity and delayed processing, which often leads to client dissatisfaction.

Q & A

What is the EB-5 visa program and how does it work?

The EB-5 visa program allows foreign investors to obtain a U.S. green card by investing $1.8 million in a U.S. business that creates at least 10 American jobs. It can also be done through a regional center, where the investment is pooled with other investors. After two years, the investor must demonstrate the creation of jobs to convert the temporary green card into a permanent one.

Why has the EB-5 visa program received criticism, especially in the case of J-PEAK?

The EB-5 visa program has faced criticism due to fraud cases like J-PEAK, where developers promised specific outcomes such as job creation within a set period but failed to meet these commitments. As a result, investors lost both their financial investment and their visas, as they couldn't demonstrate the creation of the required jobs.

What are the major steps involved in the EB-5 visa process?

The EB-5 process is a two-step process. First, the investor receives a conditional green card for two years. After two years, the investor must demonstrate that their investment has created at least 10 U.S. jobs. If successful, the conditional green card becomes permanent.

What are the risks associated with the EB-5 visa program?

The primary risks include financial loss if the investment does not meet the promised job creation or returns, as well as the risk of losing the green card if the job creation requirement isn't met within two years.

How long does it typically take to go through the EB-5 process?

The EB-5 process is multi-year. It can take several years to get the initial conditional green card, followed by a two-year waiting period. After that, investors must apply again to demonstrate job creation, making the entire process potentially take a decade or more.

What is the H-1B visa, and who is eligible for it?

The H-1B visa is a work visa for foreign nationals with specialized skills. The job must require a university degree in a specific field. Common industries that use the H-1B visa include tech, healthcare, and education, but it can also apply to other sectors where specialized knowledge is needed.

How does the H-1B lottery system work?

The H-1B visa program uses a lottery system due to high demand. Employers must register candidates for the lottery, which takes place in mid-March each year. Only about 30-35% of applicants are selected, making it highly competitive.

Does the country of origin affect the chances of obtaining an H-1B visa?

No, the chances of getting an H-1B visa are not based on the applicant's country of origin. The system is designed to be neutral, with all applicants competing in the same lottery.

How do employers benefit from hiring foreign workers on H-1B visas?

Employers benefit by hiring workers with specialized skills that may be in short supply in the U.S. workforce. Many H-1B visa holders are graduates of U.S. universities who want to stay in the U.S. and contribute their expertise to the economy.

What is the J-1 visa, and how does it differ from the F-1 and H-1B visas?

The J-1 visa is for exchange visitors, including researchers and scholars. It is often used for postdoctoral research in U.S. institutions. Unlike the F-1 student visa, which is for studying, and the H-1B work visa, the J-1 is an exchange program with a potential two-year home-country residency requirement after the program ends.