Increase in EB-5 Investments and Fraud Presents Opportunities for SEC Whistleblowers
EB-5 investments have skyrocketed the past few years presenting more opportunities for fraudsters to exploit the program. The SEC warned investors about a rise in EB-5 investment scams in an investor alert in 2013. Since the alert, however, the scams have only increased as detailed in recent testimony on the EB-5 Program. In fact, since 2013, the SEC has brought 15 enforcement actionsagainst EB-5 projects that raised more than $1.2 billion from EB-5 investors and then proceeded to misuse or steal more than $361 million of the investments. Due to the increase in EB-5 investments and fraud, whistleblowers will have many opportunities in the future to report EB-5 fraud, protect investors, and become eligible for an SEC whistleblower award.