Kushner Companies EB-5 Activities Reported by Reuters and NY Times May Constitute Securities Fraud

As has been widely reported, Kushner Companies recently put on a roadshow to market to Chinese investors a New Jersey real estate project called One Journal Square. The investments are structured such that investors may qualify for green cards through the EB-5 program, which requires a minimum $500,000 investment resulting in the creation of at least 10 U.S. jobs.

Initial reporting about the roadshow led the Kushner Companies to apologize for boasting about their ties to White House adviser Jared Kushner during the roadshow. “In a sector where investors are wary of failing projects and policy changes that would jeopardize their visas,” writes Alexandra Harney for Reuters, such boasts are meant to “reassure potential investors their EB-5 projects will be successful.”

Reuters and the New York Times are now reporting that Kushner Companies’ activities may have crossed the line from boasting to misrepresentation. This perhaps makes the company vulnerable to charges of securities fraud by the U.S. Securities and Exchange Commission (SEC).  Specifically, advertisements by the company’s marketing agent in China contain multiple misrepresentations about the safety of the investment.

Continue reading “Kushner Companies EB-5 Activities Reported by Reuters and NY Times May Constitute Securities Fraud”

AmCham China 2017 White Paper: Visa Policy

AmCham China just published its 2017 White Paper on American Business in China. “With uncertainty stemming from political and economic transitions in both the US and China, perceptions of a deteriorating investment environment for foreign companies in China, and a slowing economy, 2017 will likely be one of the most challenging years in decades for U.S. companies in China,” it says. The Visa policy chapter focuses on: Continue reading “AmCham China 2017 White Paper: Visa Policy”

H-1B Visas: USCIS and Dep’t of Labor Tighten Rules and Investigate Fraud

While the H-1B petitions submitted for the lottery this cap season were still in transit to the USCIS, both the USCIS and the DOL announced several measures aimed at detecting H-1B visa fraud and abuses. The rules focus on computer programmers, site visits, and protecting American workers. Continue reading “H-1B Visas: USCIS and Dep’t of Labor Tighten Rules and Investigate Fraud”

CBP Handout on Inspection of Electronic Devices

U.S. Customs and Border Protection has a handout on Inspection of Electronic Devices, available here.  There is a section on “Why You May Be Chosen for an Inspection,” but it omits any mention of CBP’s legal position: that a person may be chosen for any reason or no reason at all: no reasonable suspicion is required. The notice also explains the procedures for return of seized devices.

 

 

Tell CBP: Don’t Spy on Chinese Travelers’ Social Media

U.S. Customs and Border Protection (CBP) has published a Feb. 21, 2017, notice of its intent to collect Chinese travelers’ social media account information. There is a 60-day window for public comment. Tell CBP this is a bad idea.

2017-04-12 Update: The American Chamber of Commerce-China has submitted a comment to CBP explaining why they oppose the rule. See here.

Continue reading “Tell CBP: Don’t Spy on Chinese Travelers’ Social Media”

Client Alert: State Dep’t Begins Stricter Vetting of Visa Applicants

U.S. Secretary of State Rex Tillerson sent four cables to consular officers between Mar. 10 and 17 with preliminary instructions for stricter vetting of U.S. visa applicants. The cables emphasize that “all visa decisions are national security decisions” and that additional screening may “may cause interview appointment backlogs to rise.” Continue reading “Client Alert: State Dep’t Begins Stricter Vetting of Visa Applicants”

President Trump Signs Revised Executive Order on “Protecting the Nation from Foreign Terrorist Entry”

President Trump has signed a revised Executive Order on “Protecting the Nation from Foreign Terrorist Entry into the United States.” It goes into effect March 16. The ban fails to address the original version’s flaws and its thinly veiled scapegoating of Muslims and refugees. Continue reading “President Trump Signs Revised Executive Order on “Protecting the Nation from Foreign Terrorist Entry””