LexisNexis® Legal Newsroom
Conducting General Solicitation under the New SEC Rules in EB-5 Practice

Ever since the Securities and Exchange Commission (SEC) lifted the ban this July on general solicitation pursuant to the Jumpstart Our Business Startups Act (JOBS Act), it was expected that the threshold for disclosure would be raised. What does this mean to EB-5 projects and EB-5 regional centers? ...

SEC Charges Texas-Based Regional Center with Securities Fraud

On October 1, 2013 the Securities and Exchange Commission (SEC) announced fraud charges in U.S. District Court for the Southern District of Texas against a Texas based EB-5 Regional Center USA Now Regional Center LLC for misappropriating the investment funds of 10 investors from Mexico, Egypt and Nigeria...

USCIS Issues Warning Regarding Regional Center Names

Last week, USCIS issued a warning advising that EB-5 regional centers and related commercial enterprises should not contain the words “United States,” “U.S.,” “US” and “Federal” in their names. The concern is that using such names may give the false impression...

FINRA Rule Regarding Payments to Foreign Agents

Earlier this week, FINRA Rule 2040 (the “Rule”) went into effect. The Rule requires all FINRA members to disclose to investors all fees and commissions paid to foreign agents and to receive written acknowledgement by investors that they are aware of these fees. This will have an impact on...