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January 21 2014

SEC Update

The SEC meets with the USCIS weekly. The SEC has also sought documents from and has been talking to some regional centers. The SEC is concerned about finder’s fees being paid to non-Series 7 licensed broker dealers in the US.

Also, the SEC wants to ensure that a project’s PPM discloses all fees paid to migration agents – not just the cash from the subscription fees, but any points from the deal as well. One securities counsel told me this may be difficult for the SEC to enforce – as with most non-EB-5 large deals, it is difficult to determine all of the fees paid to investment bankers.

Good News

We just received notice from the USCIS of approval of nine I-526s for a regional center project. Multiple RFEs were issued involving the tenant memo, among other issues.