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U.S. Citizenship and Immigration Services

Immigrant Investor Program Office

Washington, DC 20529

Nick Colucci’s Remarks

Good afternoon, and thank you for attending this engagement and thanks Steve Koch, USCIS

Miami deputy district director, for such a warm welcome and reception to the Miami District

Office. We have enjoyed our time here in Miami. We have attended meetings with various

stakeholder groups and the local offices of federal law enforcement agencies.

Today, I will discuss some of the highlights and challenges related to the EB-5 Program. I’m also

going to talk about how, as administrators of the program, USCIS intends to support its

continued vitality and integrity, and enhance program transparency. With the EB-5 program,

transparency is critical on multiple levels. It’s critical to immigrant investors in making life-

changing decisions for themselves and their families. It’s critical to Americans in forming

regional centers. Just five years ago, there were fewer than 200 regional centers; today, there are

nearly 850. Last fiscal year through the first half of this year, more than 21,000 investors

submitted Form I-526, Immigrant Petition by Alien Entrepreneur, seeking participation in the

EB-5 Program, and we approved nearly 11,900 Form I-526 petitions. Each approved investor

represents at least $500,000 already invested or obligated toward an NCE – a new commercial

enterprise – in the United States. So in terms of capital coming into our economy, 11,900

investors at half a million dollars each equals approximately $5.9 billion in new capital for

NCEs. And, we believe, that’s a conservative estimate.

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As you know, EB-5 investors immigrate as conditional permanent residents. They can file a

Form I-829, Petition by Entrepreneur to Remove Conditions on Permanent Resident Status, in

We have also been criticized – probably by some of you here in this room and on the phone – for

not going beyond general “ballpark” estimates like these derived from simple multiplication.

And, that is why, acting on a recommendation from the inspector general at DHS, we set out to

get a more refined estimate of the capital invested and the jobs created through the program. We

arranged with the Department of Commerce to assess the EB-5 Program to determine its size and

contribution to the U.S. economy. The Economics and Statistics Administration at Commerce

evaluated projects that were ongoing in fiscal years 2012 and 2013. As part of their analysis, they

reviewed the economic impact assessments prepared in support of regional center projects. They

also reviewed stand-alone projects. I hoped to be able to discuss some of those estimates today,

but the report is going through its final stages of review and I know the Department of

Now I’m going to talk about some of the challenges facing the EB-5 community. First, in several

cases, as you know, regional center principals have been implicated in stealing funds from

foreign investors. In some cases these funds have allegedly been used to purchase houses and

cars, gamble in casinos, pay personal debts, or otherwise spent inappropriately for personal gain.

It’s not sufficient to spend some EB-5 funds on a project – if you attract 100 million dollars in

EB-5 capital investment, you can’t spend 90 million on the project and put the other 10 million

intent when it created EB-5.

You may have also heard of cases where funds have allegedly been moved between projects

without notifying the investors. Sometimes, the improper movement of money can signal the

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sponsor. As the program has become more popular, the paradigm of regional center relationships

has expanded. But let me remind everyone in the EB-5 community that due diligence,

submit required information or if we believe it no longer serves the purpose of promoting

economic growth. We recognize that a regional center may no longer serve the purpose of

promoting economic growth for reasons that are innocent, unpredictable and beyond its control.

ability to comply with EB-5 requirements, or misappropriates funds, or moves funds without

investor concurrence, or fails to monitor a project it sponsors. With the regional center

designation comes great responsibility and trust. And when that trust is broken, USCIS is

committed to holding the responsible individuals and entities accountable.

As in any other financial sector, self-policing is vital to the integrity of the program. But self-

policing is not the only recourse to root out bad actors. We will continue to work with the FBI,

ICE and our other law enforcement partners, as well as our regulatory colleagues at the SEC to

share appropriate information and vigorously pursue cases of malfeasance. We all know that a

fair game requires a level playing field. Even with all the recent growth, EB-5 is still a relatively

small industry. Everyone knows each other, and competition is tough. As someone who spent a

lot of time investigating financial crime, if somebody’s up to no good, it’s probably not a secret.

As I’ve mentioned at every engagement since the beginning of my tenure: if you suspect

program has served the economic interests of the American people. The Regional Center

Program is currently authorized through September 30, 2016. However, the bad news about

improprieties in the EB-5 Program can overshadow good news about creating jobs and putting

cases it’s a crime. Before I close, let me update you quickly on a few other matters.

We continue to hire more staff to assist with the more than 25,000 petitions and applications that

are pending. Today, we have 142 on board and another 15 or so who have accepted offers. We

continue to be on track to meet our goal of 171 staff members by the end of this calendar year.

During the first half of this calendar year, more staff and greater efficiencies helped us reduce

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pending Form I-526 petitions by 12 percent and Form I-924 regional center applications by 8

percent. But keep in mind that the potential sunset date of the Regional Center Program in

Fraud Detection and National Security field personnel; and unannounced. We are seeking to

determine if the project is consistent with what was proposed and is operating as expected. These

will be mostly observational in nature, but we may speak with someone onsite – for instance,

with respect to the amount of job creation that has taken place. We understand that those with

EB-5 knowledge might not be present onsite.

With regards to audits, generally these will be conducted at the regional center by IPO staff and

and seek to speak with individuals at the regional center. An audit reviews the regional center’s

compliance with applicable laws and authorities. Again, these are general descriptions of the site

visits and audits planned for this year, but exceptions may exist.

We have also designated funds to develop a new data system to enhance our ability to analyze

and publish EB-5 data. This new system is intended to provide more timely and transparent

information to stakeholders. In the coming months, we plan to translate some of our web content

into foreign languages. We also intend to continue to work more with the financial industry to

alert us to instances of potential fraud.

Finally, we will continue to provide briefings and technical assistance to Congress as we

approach the September 30, 2016, reauthorization deadline. We continue to draft new regulations

while Congress deliberates the future of EB-5, and we stand ready to provide guidance to the

industry on whatever Congress decides.

Again, thank you for attending this engagement. All of us in the EB-5 community have a role to