EB5 Investors Magazine English Edition Volume 6, Issue 2 | Page 58

TOP LITIGATION AT TORNEYS RUSSELL C. WEIGEL, III INVESTMENTATTORNEYS | PRESIDENT Author of “Capital for Keeps,” a capital raise planning book for entrepreneurs, Russell C. Weigel, III, is a securities attorney and lecturer on private placements and other securities law issues. Weigel worked for the SEC’s Division of Enforcement for more than 10 years, having served in investigative, litigation and management capacities. Weigel’s law firm, InvestmentAttorneys, specializes in securities law, including the preparation of EB-5 transactional documents and the litigation of EB-5-related securities claims. Weigel earned his B.A. from Vanderbilt University and his J.D. from the University of Miami School of Law in 1989. Weigel is AV rated by Martindale-Hubbell. WHAT TRENDS ARE YOU SEEING WHEN IT COMES TO EB-5 LITIGATION? In 2018 I am starting to see investors in EB-5 projects suing the project developer without there having been a government lawsuit filed. In the past, investors were not organized or informed, and if they sued it was usually after a government action had been brought against the promoter of the EB-5 investment opportunity. The sophistication of the EB-5 investor has increased in recent years, which has pressured deal promotors to present better designed redeployment and exit strategies and more competitive returns-on-investment. However, older deals are at greater risk of being reviewed by investors who are now better educated. WHY DID YOU GET INVOLVED IN THE EB-5 INDUSTRY AND WHAT DO YOU HOPE TO ACHIEVE? The EB-5 industry is attractive because it can present a perfect storm: a wealthy foreign investor who may not have investment experience or U.S. legal system knowledge, developers in need of capital who have never before raised capital from equity investors, and a two-tier system of securities regulation that has hundreds of statutes and regulations to be mindful of, important gray areas where the regulations are silent, and harsh consequences (including substantial jail time) for purported wrongdoers. Making the USA a safer place to do business and invest and keeping the government out of my clients’ affairs are my objectives. Regional Centers Across the Country Regional centers in 35 states Approved States I-526 peeeons I-829 peeeons Insurance for I-526 Approval (EB-5 capital will be refunded if I-526 is not approved) The Wave Apartments Seattle WA EB5 Coast to Coast LLC 58 EB5 INVESTORS M AGAZINE Steve Smith, President (206) 214-8882 [email protected]