SEC Enforcement Division Associate Director Testifies on EB-5 Immigrant Investor Program

SEC Division of Enforcement Associate Director Stephen L. Cohen discussed the SEC's work relating to the EB-5 Immigrant Investor Program ("EB-5 Program") administered by the United States Citizenship and Immigration Services ("USCIS"). In testimony before the Committee of the Judiciary of the U.S. Senate, Associate Director Cohen stated that 19 cases involving EB-5 offerings were filed between February 2013 and December 2015. Hundreds of investors were defrauded in the offerings.

Associate Director Cohen emphasized that the SEC does not have any control over EB-5 offerings, which are private placements and are not subject to SEC review or registration. However, he added, the SEC and the USCIS have a good relationship and work well together.