US immigrant fraud has visas for sale but differences are clear in the rules to avoid fraud and protect investors
US Immigration and Customs Enforcement
The $540 million PEI Provincial Nominee Program (PNP) has been called the biggest political scandal in PEI’s history.
Similar programs work in other countries without as much controversy.
The US EB-5 program allows immigrants to buy a US Visa for themselves and their families by investing $500,000 in a business and keep or create 10 jobs over a 2 year period.
The program sounds roughly like the one in Canada we call the Provincial Nominee Program.
US businesses are certified by the government to be eligible for the foreign investment. The investment is $1 million but can be reduced to $500,000 for investing in areas that are regionally disadvantaged.
The major differences are level of investment, out-of-proportionate fees on PEI, control of invested businesses and the scale.
| Program feature | US EB-5 | PEI Canada PNP |
| Required investment | $500,000 | $200,000 |
| Agents and other fees | $50,000 | $160,000 |
| Net Investment in business | $450,000 | $40,000 |
| Type of business investment | Certified regional centers or business | Businesses were often numbered companies with no employees, buildings or equipment |
| Repayable to immigrant | yes after 5 years | no |
| Jobs created | 10 | none |
| Population | 304,000,000 | 135,000 |
| Applicants 2008 | 1,443 | 2,281 |
| Immigrants come from | China, South Korea, southeast Asia | China, Middle East |
| Concerns | Fraud and “fly-by-night” businesses | Getting more approvals, |
| Participation by elected officials | Forbidden by US law | Approved on PEI for 15 of 27 elected officials |
Immigrants to the US must invest $500,000 and create 10 jobs. On PEI, the investment is $200,000 with no job requirement.
The US program fees only amount to $50,000 while on PEI, fees are more three times the amount so the business nets very little.
US controls on both the immigrants and investors are strict. Most of the investments go to Federal Certified Regional Centers which were created in areas of unemployment. Regional Centers are governed by boards composed of experienced business people of impeccable credentials.
On PEI, the rules were broken in more than 20% of the files. Bankrupt companies, numbered shell companies, and non-qualifying organizations got funding.
With a population of 304 million, the US approved 1,443 in 2008. They hope to increase the number to 10,000 for the country.
PEI broke the bank with 2,100 applicants in 2008. The Canadian Federal government was alarmed by the PEI numbers and canceled the program.
US Senators, Congressmen and State Legislators are barred from owning or controlling businesses that receive government funding or EB-5s.
On PEI, 15 of 27 elected members of the Legislature got PNP money.
Source – Washington Post and USCIS Regional Center
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