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Accounting Administration webinar discusses fraud risk factors throughout the EB-5 life cycle

At NES Financial’s recent Navigating a Changing Sector: Accounting Administration  webinar, EVP Reid Thomas and VP of Product Marketing Scott Ramsey discussed the EB-5 administration solutions NES Financial has developed to mitigate risks of fraud and abuse in EB-5 projects.

Recent high-profile allegations of fraud and abuse involving EB-5 projects have highlighted the importance of security, transparency, and compliance in EB-5. By analyzing these cases, NES Financial has identified key risk factors spanning the EB-5 life cycle.

Funds are at increased risk of misuse as they are released from escrow and begin to be deployed into the job creating project, and this risk continues as funds flow through multiple entities as they are deployed.

In situations where the EB-5 issuer and job creating project are controlled by the same entity, conflicts of interest further increase the risk funds will be misused.

In many cases, these conflicts of interest combine with a lack of third-party oversight to prevent investors from knowing anything is amiss until they fail to receive return of their investment principle or, worse still, cannot remove conditions on their permanent residency, putting their immigration status at risk.

However, as the market leader in EB-5 administration solutions, NES Financial has developed solutions built to mitigate these risks.

By implementing third-party oversight and reporting and increasing transparency to investors, NES Financial’s Intelligent EB-5 Solutions provide projects a way to reassure investors and regulators alike that funds are being held securely and in compliance with immigration requirements.

For more information, watch a recording of the webinar here.

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2017-04-24T16:28:17+00:00 May 20th, 2016|Categories: EB-5|Tags: , , |