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Immigration Law

AAO Overturns Termination of EB-5 Regional Center: Matter of P.A.S., LLC, ID# 513109 (AAO Dec. 21, 2017)

Matter of P.A.S., LLC, ID# 513109 (AAO Dec. 21, 2017) - "We find that the positive indicia here outweigh the negative and, thus, conclude that the Applicant continues to promote economic growth and warrants preservation of its regional center designation. The derogatory factors here are substantial: the Applicant's then-principal, , diverted some $4 million in investors' funds; the Applicant lacked sufficient safeguards to prevent or detect this malfeasance; and the SEC and DHS, as well as the federal court, invested significant resources to remediate. Despite these strong headwinds, the Applicant put in place a new management team; 90 percent of investors' funds remained available, some diverted funds were recovered, and additional funds were secured; the Applicant built and opened an apartment building and hotel ; and it has demonstrated progress towards completion of the farmer's market on the ground floor of the apartment building. The 2016 Economic Impact analysis confirms that the near-completed project has already resulted in hundreds of jobs created and impacted regional and national output (sales), labor income, and household earnings. Finally, the new regional center management company has committed its own financial resources to the Applicant. We find that the Applicant has demonstrated it is more likely than not to promote economic growth in the future, and we conclude that, on balance, preservation of the Applicant's regional center designation is warranted. ... The appeal is sustained."

[Hats off to Ira Kurzban, John Pratt and Ed Ramos!]

Ira Kurzban