Minor Investors USCIS regulations do not put a minimum or maximum - - PDF document

2016 New York EB-5 & Investment Immigration Convention

Ch China Issues

Impacts of China na Quota Backlog

Charles C. Foster / Foster Global Immigration Solutions David Hirson / David Hirson & Partners, LLP Cletus Weber / Peng & Weber, PLLC Rachel Zou / LianHong Overseas Consultants Limited Moderated By: H. Ronald Klasko, Esq. / Klasko Immigration Law Partners LLP

• USCIS regulations do not put a minimum or

maximum age on green card recipients

• Strongly advised that investor should be a least

16 years of age

• Not yet tested. Waiting for the first USCIS

approval for a minor investor’s case

• Obtain project’s advance agreement for an

investment by minor

Minor Investors

There are two major issues to keep in mind:

• 1. Contractual
• Investor must have contractual capacity.
• Involves federal immigration law, state contract

law, federal and state securities laws, and the law of the place where the investor resides.

• Usually requires signing by parents/guardians

assisting the minor in entering into the contract.

• Note: rescission rights of minor upon reaching

age of 18 years.

When a Minor (under 18) is the Main Applicant in the EB-5 Petition

There are two major issues to keep in mind:

• 1. Contractual (cont’d)
• See “Uniform Gifts [or Transfers] to Minors

Act” for each State.

• Presently some Regional Center projects are

accepting minors, and others are not

When a Minor (under 18) is the Main Applicant in the EB-5 Petition

There are two major issues to keep in mind:

• 2. SEC accredited investor
• Minor must have minimum assets of $ 1
• million. May be gifted
• Accreditation of minor may fall under one of

the exemptions

• Should have a financial expert advise the

minor of the risks

When a Minor (under 18) is the Main Applicant in the EB-5 Petition

• Mixed signals
• Child as investor
• More focus on rate of return?

Impact of Retrogression Child Status Protection Act

• Better if I-526 pending longer

Investor Market

• Big problem for direct EB-5
• Basis for 2 ½ year rule no longer exists
• Much longer time to create jobs
• Jobs do not have to be sustained?

Impact of Retrogression

Job Creation

• Risk inherent in 10 year investment
• Impact on Matter of Izummi?
• Investment must be sustained at risk?

Impact of Retrogression

At Risk Requirement

• Is it necessary?
• Option to extend loan
• What is “at risk” for redeployment?
• Investor concerns

Impact of Retrogression

Redeployment

• Members of the Communist Party or affiliated organizations

are ineligible. INA§212 (a)(3)(D)

• Membership in the Communist Party of China is actually

highly restricted.

• Not inadmissible if membership is or was entered into

involuntarily or someone under the age of 16 or by operation

• f law or for the purpose of obtaining employment, food

rations or other essentials of living. INA§101(a)(2) and (e).

• Also not inadmissible if the membership or affiliation

terminated before application or admission in the case of China, 5 years if a member of a party controlling the government and not a threat to U.S. security.

Membership in Communist Party

• If the applicant asserts credibly that the membership or

affiliation was terminated more than 5 years previous, the Consular Officer should accept the assertion at face value. 9 FAM 302.5-6(B)(5)(U).

• The parent, spouse, son, daughter, brother or sister of a USC
• r a spouse, son or daughter of an LPR may obtain a waiver for

“humanitarian purposes,” to assure family unity or when it is

• therwise in the public interest… INA§212(a)(3)(D)(iv).
• Responsible positions with the Communist government

generally constitute affiliation. 22 CFR 40.34(c).

Membership in Communist Party

(cont’d)

• U.S. agencies now share much

information in real-time.

• More in-country info is now available
• nline.

Higher Scrutiny of I-526 Info, Especially Comparing Info Previously Provided

• Potential effects:

– USCIS denies I-526 because info differs from prior visa applications – Consulate rejects IV application and returns I-526 to USCIS to revoke. – Serious penalties for material misrepresentation

Higher Scrutiny of I-526 Info, Especially Comparing Info Previously Provided

• A political issue in the Republican primaries with

references to “anchor babies.”

• May be a fraudulent misrepresentation.
• Another concern is whether or not the immigrant visa

applicant obtained medical assistance at taxpayer subsidized expense.

• Legitimate for a visitor to enter the United States for

medical purposes, including having a baby as long as there is adequate disclosure.

Prior B-1/B-2 Nonimmigrant Visa Application and U.S. Entry for Birth Tourism

• Disclosing the reason for the visit at the time of the

interview, having a medical appointment in advance and having evidence that the applicant is paying the full rate for the medical services is highly recommended.

Prior B-1/B-2 Nonimmigrant Visa Application and U.S. Entry for Birth Tourism

(cont’d)

• Attending a public or private school in B-2 status is

considered a per se violation of B-2 status unless one’s attendance at school is incidental to the visit.

• This has become a sensitive political issue due to real

and perceived abuse and is one that is highly scrutinized by both U.S. Consular Officials and CBP and CIS.

• The student is normally required to be in either F-1

Student or J-1 Exchange Visitor status.

Children of Visa Applicants Attending Public or Private Schools While in B-1/B-2 Status

• May attend a public school in F-1 status only for one

year but required to reimburse the school for education

• cost. INA§214(m)(l).
• Subject to 5-year bar of inadmissibility if attend school

in violation of status.

• Parent may also be deemed to have made a material

misrepresentation and be subject to exclusion.

Children of Visa Applicants Attending Public or Private Schools While in B-1/B-2 Status

(cont’d)

• China

– Rules are very restrictive – Individuals may remit U.S. $50,000 annually – Varying restrictions are introduced from time to time

Exchange Control Rules

• Increased scrutiny
• In-Country Databases of Business Records
• Calls to Companies to Verify Information
• In-Person Site Visits
• Other Tactics Possible

USCIS’s In-Country Verification

• f SOF and Other Documentation
• B-1/B-2 Visitor or F-1 Student

– Under INA§214(b), each applicant has the burden of proof to show that they are not intending immigrants to the United States. – May be possible to show “dual intent” i.e. that the applicant long-term seeks to immigrate, but has a short term need or desire to enter the U.S. as a visitor or student.

Options for Entry During Waiting Period for EB-5 Numbers to be Available

• L-1 Intracompany Transferee

– If the primary bread winner is employed in a viable business in China and has a bona fide option of establishing a U.S. affiliated company, the principal may qualify as a manager, executive or one possessing specialized knowledge. – Immediate family may also qualify for L-2 dependent status and for an Employment Authorization Document (EAD).

Options for Entry During Waiting Period for EB-5 Numbers to be Available

(cont’d)

• H-1B Specialty Worker

– May qualify with a bona fide job offer from a U.S. employer in a position requiring a 4-year university degree or the equivalent. – Chances of obtaining H-1B status are greatly diminished by the annual cap of 65,000 per annum plus an additional 20,000 Master’s Degree from a U.S. university. Chances of obtaining H-1B no greater than 25%.

Options for Entry During Waiting Period for EB-5 Numbers to be Available

(cont’d)

Options for Entry During Waiting Period for EB-5 Numbers to be Available

• O-1 Extraordinary Ability

– For those who have achieved significant success and recognition in their particular field of endeavor. – No numerical limitation, but requirements must show significant evidence that they have risen to the very top of their profession.

(cont’d)

Options for Entry During Waiting Period for EB-5 Numbers to be Available

• E-1/E-2 Treaty Trader/Treaty Investor

– No E-1 Treaty Trader or E-2 Treaty Investor option given the fact that the U.S. does not have a Treaty

• f Friendship, Navigation and Commerce with the

People’s Republic of China. (It does have such a treaty with the Republic of Taiwan.)

(cont’d)

Disclaimer

This presentation outline and the presentation itself are for general education purposes only and are not intended to provide specific guidance or legal advice about what to do or not to do in any particular case. You should not rely on this general information to make decisions about specific immigration matters. If you are not yourself a lawyer, you should seek the assistance of an immigration lawyer to help you resolve these issues. Thank you.