EB5 Investors Magazine Volume 7, Issue 1 - Page 75

EB5INVESTORS.COM 73 ELIGIBILITY IS SEPARATE FROM SOURCE OF FUNDS As a practical matter, the well-heeled investor with copious amounts of lawfully acquired assets probably does not need to source his or her administrative fees. In such a case, an adjudicator might assume that an investor who doesn’t need to use unlawfully acquired capital won’t. Adjudicators may even accept that investors of significant wealth may have some illegal income, but that the illegal income is not a direct or indirect source of the investment funds. After all, eligibility issues are often separate from SOF issues. A source of funds consultant should make a case-by-case decision as to each client and how much effort should be expended on providing a lawful source of funds analysis for big-ticket items, including the administrative fee, that show up on an investor’s balance sheet. The best practice is to employ a consultant for SOF that has the experience and intuition to ensure the burden of proof in each case is satisfied. But generally, it is the marginal investor who has the greater burden of production who may wish to source his/her administrative fee. S tephen P. P azan is an attorney working as a consultant to Baker Tilly Capital, LLC on EB-5 source of funds and other issues. Pazan was a consular officer with the U.S. Department of State in Colombia, Kyiv and Warsaw. He was also an EB-5 adjudicator in the investor program office of USCIS before leaving government in March 2018. He is also special counsel to the New York law firm Barket Epstein Kearon Aldea & LoTurco, LLP. Sources 1 See, e.g., Matter of Ho, 22 I&N December 206 (Assoc. Comm. 1998); Matter of Izzumi, 22 I&N December 169 (Assoc. Comm. 1998); Matter of Hsiung, 22 I&N December 201 (Assoc. Comm. 1998). 2 See Policy Manual, Chapter 2, Eligibility Requirements, A.1 & 4. The Manual does not define “indirect source.” We Offer Highest-Quality Projects to EB-5 Investors Stazione:25 Apartments at Mt. Baker Station, Seattle WA Regional centers in 35 states. DEVELOPERS: contact us if you need a RC for your project I-526 peeeons I-829 peeeons I-924 peeeons Regional Centers in 35 States! 100% approval rate for all peeeons Insurance for I-526 Approval (EB-5 capital will be refunded if I-526 is not approved) EB5 Coast to Coast LLC www.EB5CoastToCoast.com This is neither an offer to sell nor a solicitation to buy securities. Such an offer will only be made to qualified investors through a Private Placement Memorandum (PPM) describing risks and uncertainties of the investment. Please rely only on the PPM before making a decision to invest. Steve Smith, President (206) 214-8882 steve@EB5CoastToCoast.com