EB5 Investors Magazine Volume 5, Issue 2 - Page 109

A CLOSER LOOK AT THE LAW "...EB-5 offerings are not subject to the heightened disclosure requirements..." sales process. Most courts and securities practitioners likely would agree that the payment of commissions to middlemen involved in the offering and sales process in unregistered EB-5 offerings is material and should be disclosed to EB-5 investors even though there is no SEC rule that mandates such disclosure. However, reasonable minds may disagree on the level of disclosure necessary. The spectrum of potential disclosure is broad and could range from a minimum disclosure that an issuer has retained the services of one or more middlemen to solicit or steer investors to an EB-5 offering, to a very detaile \\HY[YZ[[ZY[Y[[ݚY[XYX]Z[X]Z\\[][ۋ[Z[\H\\H\]Z\Y[HY\\Yٙ\[˂[\[\\H\Z[H[YXY[ ]ZY [B^X[]H]\Y\X^H\[H]H[Z[HB[[Z[]YH]\HY\]]H[Y[Y[HPMBܘ[KX[Y\]]H[X[]H\\BX]Y\ۙ[[\\[\\[][ۂZY܈HZYZY[Y[[Y[PMHٙ\[˂[[\H\X\[^X]\H[Y[Y[Y\][ۈ\]YHܛHوX[]ܞB\\H\]Z\[Y[ SSQTSӔTUQST“ۙH[[ۈ\[\ؚX[ۈݚY[]Z[Y\\H\]X\\H[]H\Y\]H\]]]H\Y[YH[YX][X[]ܙZYۈY[[Y[PMHٙ\[ˈY[[\HH[ܛX][ۈYX]HY\\[][ۋ[H[ X]\X[]H[HHZY[[\K\[[ۜ]Y[[\[[\HYۚYX[[[ۜ܈X\]Y\][][ۜˈ[[BY[[\H\X[[H[[YH]\BX\]Y\][][ۜˈH\[ܙ\Y[H™\ܙHZ\[Z\[ۜ K \ L[ZYY[[\\[\\YYۚYX[][[ۙ^H[[Y\YZ[[K[Y[ M YZ[H]ܛ^H[  YZ[\]\KYH\[][ۈHZYܙZYۈY[\][H[HHX\ۘXH[\܈[^X H\[Y[܈[\X\\H\ۙ\[۝\ YB\[][ۈZY\X]\X[HY\܈X\YY\[H[][H[[ۛH^XY H[Y][ۈ\H[[ۜ\X\[[PMBٙ\[[[HXX\܈\[[ۜ™H\X\][[HX\]Y\[\HY^B[Z]YZ\ۙX[HX[\[[\Y[Y\\܈\X[\]\^H\HY\\Y܂PRSTԔːH L