EB5 Investors Magazine English Edition Volume 6, Issue 2 | Page 56

TOP LITIGATION AT TORNEYS SCOTT ANDERSEN ANDERSEN, P.C. | PRINCIPAL Scott Andersen is principal at Andersen, P.C., a securities regulatory and defense law firm. Andersen was formerly deputy regional chief counsel at FINRA, where he oversaw all FINRA enforcement cases prosecuted by the Los Angeles office. Andersen has broad experience with regulatory investigations and enforcement actions as a 19-year plus securities regulator. He has led complex criminal and civil prosecutions for the N.Y. state attorney general's office, the NYSE and FINRA. He has represented EB-5 participants, including a regional center, EB-5 issuer and a market intermediary in investigations conducted by the SEC and FINRA. WHAT TRENDS ARE YOU SEEING WHEN IT COMES TO EB-5 LITIGATION? The SEC and other regulators continue to have great interest in the EB-5 space to ensure compliance with the federal securities laws. The SEC is focused on whether EB-5 offerings are properly registered with the SEC or meet an exemption to registration. The SEC also continues to review offerings for fraud, including ensuring that investment proceeds are being properly utilized, as well as probing offerings for unregistered broker-dealer activity. FINRA is closely monitoring its broker- dealer members and their associated persons for compliance with these issues as well as applicable FINRA rules such as suitability, AML, advertising, due diligence and supervision. WHY DID YOU GET INVOLVED IN THE EB-5 INDUSTRY AND WHAT DO YOU HOPE TO ACHIEVE? The EB-5 Immigrant Investor Program provides overseas persons who invest in the U.S. a potential path to becoming a U.S. resident. I was immediately attracted to the program and quickly understood that many immigration and real estate professionals involved in EB-5 programs did not have sufficient experience with U.S. securities laws and regulations. I was interested in helping participants understand the applicable requirements to ensure their securities offering complied with all statutes and rules. Often this involves addressing errors previously made to bring a program into compliance with applicable U.S. securities laws. BOB CORNISH WILSON ELSER MOSKOWITZ EDELMAN & DICKER LLP | ATTORNEY Bob Cornish is a securities at torney with Wilson Elser Moskowitz Edelman & Dicker LLP, an AmLaw 100 member based in Washington, D.C. For nearly 25 years, Cornish has participated in cutting-edge securities litigation matters for institutional investors, family offices and industry participants. Among such matters include his work in the liquidation and reorganization of bankrupt broker-dealers, FINRA and SEC enforcement proceedings, as well as the mediation and arbitration of securities-related disputes. In the EB-5 arena, he has been a leader in developing dispute resolution solutions for regional centers and investors, including litigation funding. Cornish is a member of the EB-5 Securities Roundtable and AV rated by Martindale-Hubbell. WHAT TRENDS ARE YOU SEEING WHEN IT COMES TO EB-5 LITIGATION? The wave of popularity in EB-5 has created litigation challenges for both investors and industry participants. Many are facing issues as creditors (and perhaps debtors) in U.S. bankruptcy 56 EB5 INVESTORS M AGAZINE courts, which by their nature complicate the litigation precepts upon which decisions are customarily made. This dynamic has led to people seeking counsel as the members of a group of litigants, rather than individually, to preserve assets and perhaps immigration benefits with a particular emphasis on cost sensitivity. This will not only continue in the area of failed or troubled projects, but also for those projects facing redeployment issues caused by retrogression. WHY DID YOU GET INVOLVED IN THE EB-5 INDUSTRY AND WHAT DO YOU HOPE TO ACHIEVE? I had the pleasure of being introduced to the concept of EB-5 by my former colleague and good friend, Rana Jazayerli, a well-known immigration attorney in Washington, D.C. My former law firm was looking to grow its base of work into immigration but was hesitant to do so. When we met Rana, the entire securities world of EB-5 seemed to appear right before our eyes. I was particularly intrigued about the convergence of securities law and immigration, and saw many opportunities to apply my skills as an attorney and compliance professional in the EB-5 arena.