Speech #1140007984

Madam President. 2 days ago ABC ran a story on its "Nightline" program that brought to light issues with the immigrant investor program. This program is also known as EB5. This immigration program was created by Congress in 1990. It was created to stimulate the U.S. economy through job creation and capital investment by foreign investors. In 1992 Congress further added the regional center component that allows participants to pool dollars for foreign investors. The story on "Nightline" detailed how visas and green cards are for sale for more than $500.000. It also highlighted how spies and terrorists can use the program to enter the country. risking our national security and undermining the real intent of the program. For the past few years. whistleblowers have come to me about the fraud. abuse. and national security problems with that program. A December 2013 audit of the EB5 program conducted by the Department of Homeland Security Office of Inspector General substantiated several of these concerns. The OIG report concluded that the U.S. Citizenship and Immigration Services is unable to demonstrate the benefits of foreign investment into the U.S. economyin other words. questioning whether the original intent of the program was being accomplished. Specifically. the Office of the Inspector General found that the U.S. Citizenship and Immigration Services could not validate whether the EB5 program actually created 49.000 jobs. In addition. a 2013 internal memorandum from the U.S. Immigration and Customs Enforcement. Homeland Security Investigations noted that "the nature of indirect job growth is problematic." Allow me. please. to discuss the fraud issues related to the program. The EB5 program requires a foreign national to invest $1 million in order to obtain a visa. However. there is a lower threshold for projects that are in high unemployment or rural areas. Investors have exploited this loophole. As noted in press reports. some metropolitan areas are drawing their own maps or gerrymandering in order to meet this low threshold. The U.S. Citizenship and Immigration Services ignores the problem and doesnt question it. Additionally. there are serious concerns that the U.S. Citizenship and Immigration Services does not adequately verify the documentation and the source of funds from investors. Adjudicators do not thoroughly check how an investor has received $500.000 and whether the funds are even legitimate. Finally.