Houston Texas is the latest to cite a large EB-5 visa program for diversion of funds. In case you have forgotten, almost all of the EB-5 visas ever applied for are by Chinese citizens. This article does not say what the nationality of the people involved was, but the national statistics don't cover that up. This one is a little different because the participants are all Chinese:
"The project in Pearland, Texas, also had an unusual twist: Both the developers and Crown Point Regional Center, the firm that marketed the green cards abroad, are owned by the same listed Hong Kong company, Modern Land (China) Co. Ltd., according to documents reviewed by The Wall Street Journal."
So, it looks like the SEC will be investigating a Chinese company for defrauding Chinese investors. I doubt that is the only category of investors but that is harder to know for sure.
The good thing is that the abuses of the EB-5 have slowed down the issue of visas for the Chinese to the point that they find it less attractive. That will be true for a little while, but the 2020 elections are coming up and you can bet it will pick up again soon. EB-5 visa holders are allowed to donate to US political parties as if they were US citizens, and they do. The Chinese are good about following the laws that benefit them. This gives them cover for the funneling of political influence money that doesn't show up as foreign contributions. In Virginia, Terry McAuliffe was facilitating that distribution to the Clinton campaign and was cited for direct interference in the visa process by the Homeland Security IG. But, don't think it is only Democrats getting this money. The Chinese are equal opportunity employers.
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