security

NES Financial Innovation Series Webinar: Next Generation Escrows

NES Financial’s Innovation Series kicks off with “Next Generation Escrows” on March 30, 2017 at 11:00 A.M. PST, and brings together the experience and expertise of Arnstein & Lehr’s Rohit Kapuria and NES Financial’s Reid Thomas. The EB-5 Regional Center Program continues to stand as a conduit for billions of dollars in foreign direct investment. [...]

March 14th, 2017|Categories: BLOG, EB-5|Tags: , , , , , |

Selecting the Right Qualified Intermediary in a 1031 Exchange

Given the unpredictable state of today’s economy, many companies are selling business or investment property and buying other investment assets. By using a 1031 exchange in this process, companies can defer capital gains and depreciation recapture taxes. One of the requirements of using a 1031 exchange is that funds must be held in banks with [...]

February 28th, 2017|Categories: 1031 Exchange, BLOG|Tags: , , , , |

Stronger integrity measures in store for a long-term EB-5 extension

Even as the EB-5 Regional Center Program received another short-term extension on December 9 with the Continuing Resolution, comprehensive program reforms and a long-term extension are projected before April 2017. In recent legislative draft proposals, a strong emphasis has again been placed on protecting stakeholder rights. The proposal language mirrors previous EB-5 legislative drafts, which [...]

December 16th, 2016|Categories: EB-5|Tags: , , , , , |

EB-5 Regional Center Program extended through April 2017

Replicating the high drama of the September 29 continuing resolution, the EB-5 Regional Center Program is set for another short-term extension through April 28, 2017. On December 6, 2016, Congress signaled that it would pass a new CR through a House-introduced Further Continuing and Security Assistance Appropriations Act. The Senate finally passed the CR with [...]

December 10th, 2016|Categories: EB-5|Tags: , , , , |

Maximize efficiency with integrated technology systems

Consider the disparate technology systems used in private equity fund administration. Between back-office, middle-office, investor relations, and compliance, the different technologies being used may contribute to critical inefficiencies and unnecessary exposure to risk. The back-office fund accountant and fund accounting groups may be using Excel and SS&C, which lack integrated applications and require manual waterfall calculations. [...]

October 25th, 2016|Categories: Fund Administration|Tags: , , , , |

Cybersecurity: Prioritizing data security against cyber risk

One of the hot-button issues in almost all industries is cybersecurity. It has become a central topic of debate between presidential candidates, and has generated its fair share of sound bites, with both candidates pushing it as an immediate and top priority. Private equity firms, perhaps more so than other industries, need to follow suit. [...]

October 11th, 2016|Categories: Fund Administration|Tags: , , , , |

Risk factors for fraud in EB-5

The EB-5 program has grown exponentially since 2008, generating more than $11 billion in foreign direct investment and supporting more than 30,000 jobs per year. However, with this growth comes growing pains: since 2013, the Securities and Exchange Commission has brought enforcement actions against more than eight allegedly fraudulent EB-5 projects. Across these projects, common [...]

June 8th, 2016|Categories: EB-5|Tags: , , , , , |

Conflicts of interest in EB-5

Conflicts of interest have been a common factor in nearly all isolated allegations of fraud involving EB-5 projects. The majority of EB-5 projects target raises between $5-15M—a substantial sum of money. Without the right safeguards in place, the temptation for an unscrupulous issuer to misuse investor funds can be high. Conflicts of interest only exacerbate [...]

June 7th, 2016|Categories: EB-5|Tags: , , , , |

Third-party oversight helps deter and detect EB-5 fraud

Part of the complexity of the EB-5 process lies in the number of entities involved. Funds must be tracked throughout a multi-year process as they move through the EB-5 lifecycle, and specialized tracking and reporting requirements can make administering these funds complex. In several cases, alleged EB-5 fraudsters have taken advantage of this complexity to hide [...]

June 1st, 2016|Categories: EB-5|Tags: , , , , |

EB-5 facts: EB-5 funds are heavily scrutinized to prevent money laundering

Myth: EB-5 enables money laundering. Fact: EB-5 funds are heavily scrutinized to prevent money laundering. In addition to the detailed source of funds review performed by DHS, the US banking system is regulated to ensure that money laundering does not occur and to identify potential threats. U.S. banks accepting foreign funds must comply with Know-Your-Customer (KYC), [...]

March 17th, 2016|Categories: EB-5|Tags: , , , |