Please visit EB5Projects.com for current information on EB-5 Visa Investments and Regional Centers

Question:

0 people likes this

I want to invest in a troubled business. I know that in a troubled business an investor is supposed to maintain the number of employees that the business had before the investment was made. If I maintain the number of employees but replace them with my own employees (all of who can legally work in the US), am I in violation of the EB-5 program for troubled businesses? The relevant regulation (8 CFR 204.6(j)(4)(ii)) does not give me clear guidance on this issue. Thank you very much for your help.

0 people likes this

Answers:

June 04, 2013 17:12 Joseph Whalen

By "replace them with my own employees" are you talking about "relocating existing employees"? That would not be allowed. That said, what is proposed is counter to the meaning of the statute and Congressional Intent.

Why would you do this anyway?

Doing that would also implicate potential discrimination claims IF a business was flushed of all existing employees and replaced with new employees all of the same ethnicity you can count on a lawsuits and heavy fines.

0 people likes this