EB5 Investors Magazine Volume 7, Issue 1 - Page 85

EB5INVESTORS.COM 83 which lead to a delay in full job creation, the cause of such a delay may need to be proven in court. A common argument is that the operator has no liability for operating at a loss in order to meet job creation. Has the investor been denied various immigration benefits? If the investor has not received his or her green card, there are various causes of action for the denial of an I-829. Does the investor have a duty to exhaust all I-829 appeals before filing a cause of action for denial of a green card? This process could include filing suit in federal district court, appealing that decision. Regarding a return of investment, if the project is completed and the jobs created, when is the money due back to the investor? If a large project still has investors waiting for I-829 approval, there cannot be a return of capital which would jeopardize that investor’s application. We look at issues of partial refinance and redeployment of capital due to another investor’s delay. Beyond just a return of principal, some investors will sue to capture their share of the gain or profit allocation. If the “ Beyond just a return of principal, some investors will sue to capture their share of the gain or profit allocation. agreement allowed for a percentage equity of gain, then they might sue how to enforce the excess profit allocation beyond return of principal. These are common contract issues, but important to analyze through the lens of EB-5. Alleged fraud or misuse/mismanagement of funds is another reason to sue. These allegations are quite serious and carry potential criminal penalties and individual liability. Careful accounting and forensic work are often needed to unwind the decisions and process behind the expenditures.