Eb-5 Visa Fraud Prosecutions
✅ What Is the EB-5 Visa Program?
The EB-5 Immigrant Investor Program allows foreign investors to obtain a U.S. green card by investing at least $900,000 to $1.8 million in a U.S. business that creates or preserves at least 10 full-time jobs.
This visa is a pathway to permanent residency for investors and their immediate family.
Unfortunately, the program has been targeted by fraudulent schemes involving false representations, misappropriation of funds, and fake job creation.
⚖️ Nature of EB-5 Visa Fraud
Common fraudulent practices include:
Misrepresenting the use of investment funds — using money for personal expenses rather than the project.
False job creation claims — overstating or fabricating the number of jobs created.
Fake projects or shell companies — nonexistent or non-viable business ventures used to obtain visas.
Fraudulent documents — fake financial statements, business plans, and immigration forms.
Ponzi schemes — promising high returns while using new investor money to pay off older investors.
🧾 Relevant Legal Statutes
18 U.S.C. § 1343 — Wire fraud.
18 U.S.C. § 1344 — Bank fraud.
18 U.S.C. § 1956 — Money laundering.
18 U.S.C. § 371 — Conspiracy.
Immigration fraud statutes — misuse of immigration-related documents.
Various state securities and fraud laws.
⚖️ Detailed Case Summaries
1. United States v. Lei Wei (New York, 2019)
📌 Facts:
Wei operated an EB-5 investment scheme promising investors that their funds would be used in a hotel development.
Instead, Wei diverted millions to personal accounts and unrelated businesses.
Investors never saw promised job creation or returns.
⚖️ Charges:
Wire fraud, conspiracy to commit immigration fraud, and money laundering.
🧾 Outcome:
Convicted on all counts.
Sentenced to 15 years in federal prison.
Ordered to forfeit over $10 million.
📍 Significance:
Major conviction demonstrating severe penalties for misappropriation of EB-5 funds.
2. United States v. Norman Wang (California, 2020)
📌 Facts:
Wang promoted an EB-5 project involving real estate development.
Submitted fake job creation reports and falsified documents to USCIS.
Raised over $50 million from foreign investors.
⚖️ Charges:
Immigration fraud, wire fraud, and conspiracy.
🧾 Outcome:
Wang pleaded guilty.
Sentenced to 7 years in prison.
Restitution ordered to investors.
📍 Significance:
Highlights importance of truthful job creation documentation.
3. United States v. Rong Zhang et al. (Texas, 2018)
📌 Facts:
Zhang and associates orchestrated a Ponzi scheme under the guise of EB-5 investments.
Used new investor funds to pay returns to earlier investors.
Promoted false investment opportunities in energy projects.
⚖️ Charges:
Wire fraud, bank fraud, conspiracy.
🧾 Outcome:
Zhang sentenced to 12 years in prison.
Co-conspirators received sentences ranging from 5-10 years.
📍 Significance:
Illustrates Ponzi-style fraud in the EB-5 context.
4. United States v. Haile Selassie (Washington D.C., 2021)
📌 Facts:
Selassie falsely claimed to have secured government approvals for a large-scale EB-5 project.
Collected over $20 million from investors, much of which was never used for project development.
Submitted falsified documents to USCIS.
⚖️ Charges:
Immigration fraud, wire fraud, and money laundering.
🧾 Outcome:
Convicted and sentenced to 10 years.
Ordered to pay significant restitution.
📍 Significance:
Emphasizes the requirement of genuine government approvals and legitimate project progress.
5. United States v. Elena Baturina (New York, 2017)
📌 Facts:
Baturina ran an EB-5 consulting firm that promised guaranteed green cards for investments.
Used fake employment verification documents and doctored financial statements.
⚖️ Charges:
Conspiracy, immigration fraud, and wire fraud.
🧾 Outcome:
Convicted after trial.
Sentenced to 8 years imprisonment.
📍 Significance:
Demonstrates prosecution of fraudulent consulting firms involved in EB-5 schemes.
6. United States v. Jack Liu (California, 2022)
📌 Facts:
Liu was charged with defrauding investors by selling shares in a nonexistent EB-5 project.
Used investor funds for luxury purchases and personal expenses.
⚖️ Charges:
Wire fraud, money laundering.
🧾 Outcome:
Pleaded guilty.
Sentenced to 12 years in prison.
Ordered forfeiture of luxury assets.
📍 Significance:
Example of individual promoters exploiting EB-5 investors.
📌 Legal Lessons from These Cases
| Key Fraud Element | Legal Consequences |
|---|---|
| Misuse of investor funds | Severe prison sentences and forfeiture |
| False job creation claims | Immigration fraud charges and additional penalties |
| Fake or non-existent projects | Conspiracy and wire fraud convictions |
| Falsified documentation | Wire fraud and document fraud statutes |
| Ponzi schemes | Bank fraud and conspiracy charges |
✅ Summary
EB-5 Visa Fraud prosecutions focus on protecting foreign investors and maintaining the integrity of the immigration investment program. Courts impose heavy sentences and asset forfeitures for those who misuse funds, fabricate documentation, or run Ponzi schemes. Prosecutors often charge defendants under multiple statutes to address the multifaceted nature of EB-5 fraud.
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