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An additional review of the EB-5 program was prepared by U.S. Immigration and
Customs Enforcement and Homeland Security Investigations at the request of the DHS
Secretary. 360 The ICE-HSI review of the EB-5 program identified national security, criminal,
and basic programmatic weaknesses in the EB-5 program, including the following
vulnerabilities:
1. “Export of Sensitive Technology/Economic Espionage”
2. “Use by Foreign Government Agents/Espionage”
3. “Use by Terrorists”
4. “Investment Fraud by Regional Centers”
5. “Investment Fraud by Investors”
6. “Fraud Conspiracies by Investors and Regional Centers”
7. “Illicit Finance / Money Laundering” 361
ICE’s review of the EB-5 program, which was prepared at the request of the Secretary,
concluded that the entire Regional Center model was too dangerous and should be scrapped:
“Based on concerns outlined above, HSI made several suggestions for both legislative fixes and
information collection fixes to close loopholes in the EB-5 program. The principal change
proposed by HSI was that the Regional Center Model be allowed to sunset, as HSI maintains
there are no safeguards that can be put in place that will ensure the integrity of the RC
model.” 362
In December 2013, the Inspector General released a public report corroborating the
weaknesses in USCIS’s management of the EB-5 program that have been identified in the
administration’s internal reviews. 363 The Inspector General reported that: “USCIS is limited in
its ability to prevent fraud or national security threats that could harm the U.S.; and it cannot
demonstrate that the program is improving the U.S. economy and creating jobs for U.S. citizens
as intended by Congress.” 364
Given the national security and criminal threats associated with the program, Senator
360 Undated Memorandum, U.S. Customs and Immigration Enforcement on Implications of U.S. Immigration and
Customs Case Against Procurement Agent. U.S. Immigration and Customs Enforcement, Homeland Security
Investigations, “EB-5 Program Questions from DHS Secretary.” Senator Grassley published a redacted copy of the
document on his website, at: http://www.grassley.senate.gov/sites/default/files/issues/upload/EB-5-12-12-13-ICEmemo-security-vulnerabilities.pdf
(Accessed: December 28, 2014).
361 Ibid..
362 Ibid.
363 DHS Office of Inspector General, “United States Citizenship and Immigration Services’ Employment-Based Fifth
Preference (EB-5) Regional Center Program,” OIG-14-19, December 2013.
364 Ibid, p.1.
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