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EB-5 Investment Voice
Mona Shah & Associates Global Podcast Series
By Hermione Krumm, Esq.
EB-5 Investment Voice is the only Podcast series that focuses on the United States immigrant investor visa, EB-5 and foreign direct investment. Mona Shah, Esq. welcomes guests from the industry, including: Developers, Regional Center Operatives, Attorneys, Legislators and Politicians.
When thinking about EB-5, the media tend to ultimately jump to the conclusion that it is a “Green-Card-for-Cash” program, without realizing that it is a securities offering, which falls under the SEC’s strict scrutiny. Although many dwell on the thought of corporate discussions, in the last five years, the SEC seems to have made EB-5 a priority, which makes the topic pertinent and crucial. In this episode, Mona is joined by leading SEC defense attorney Edward Gartenberg to discuss the SEC’s governance over the EB-5 program. They explain the importance of following the plan as outlined in the project’s PPM to avoid a use of proceeds violation. They also offer insight around broker-dealer violations, the SEC’s narrow view of the issuer exemption, and the potential consequences of breaking securities laws—regardless of your intentions.
A leading SEC defense attorney out of Los Angeles, Edward Gartenberg served as a Special Counsel for the Division of Enforcement of the SEC and a Special Assistant in the United States Attorney Office (Washington, D.C.). He has represented numerous attorneys, Regional Centers, brokers, and project sponsors in EB-5 investigations and litigation brought by the SEC.
The “Issuer Exemption,” as it’s commonly known, typically applies to individual employees or agents of the issuer rather than the issuer itself. The rule has customarily been interpreted to not require the issuer itself to register as a broker because the issuer is not effecting transactions for the account of others, however, persons acting on behalf of the issuer engaged in distributing its securities, including the issuer’s own directors, officers or employees, may be deemed 'brokers' under Section 3(a) of the Act.
Please see the link below for access to the podcast episode: http://mshahlaw.com/technical-violations-securities-law-edward-gartenberg/ .
About the Author:
Hermione Krumm, Esq. is an associate attorney with Mona Shah and Associates Global. Hermione works with EB-5, corporate, merger and acquisition (M&A), intellectual property and foreign direct investment (FDI) matters involving China, the UK and the US. Hermione writes and comments frequently on current business and immigration issues. Her articles have been published by LexisNexis, ILW, EB-5info, EB-5 Supermarket, etc. Hermione received her LL.B. (Hons) from the University of Manchester School of Law (UK), and obtained her LL.M. from Cornell Law School. Hermione speaks fluent English, Mandarin and Cantonese.