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u/JohnnysBananas

▲ 2 r/EB5Questions

https://www.investmentnews.com/regulation-legal-compliance/investors-sue-us-immigration-fund-over-896m-loss-on-stalled-nomad-tower/266265

Crazy - I swear these keep coming up:

  • ~160 EB-5 investors (foreign nationals) claim $89.6M+ in losses tied to a failed NYC “29th & 5th” NoMad tower project  
  • Lawsuit filed April 2026 against U.S. Immigration Fund + execs, alleging they pushed investors into a doomed deal while collecting fees  
  • Each investor put in ~$560K (including fees) for preferred equity in the project  
  • Core claim: material risks were hidden  developer had dozens of lawsuits and alleged internal fraud before investment  
  • Financing allegedly made no sense: only ~18% of required capital secured, weak property valuation vs. total project size  
  • Project collapsed → foreclosure sale with basically no real bidding competition  
  • Claims include securities fraud, misrepresentation, breach of fiduciary duty, and contract violations  
  • Case not proven yet defendants haven’t responded and no court ruling so far

  

DYOR and be careful out there in the EB5 world.

u/JohnnysBananas — 29 days ago
▲ 7 r/EB5Questions

https://www.investmentnews.com/regulation-legal-compliance/class-action-accuses-eb-5-fund-operator-of-unlawful-broker-dealer-activity/266196

Saw this article posted - I'm not even in the slightest surprised.
Key highlights:
Quick breakdown from InvestmentNews:

  • Investors each put in ~$500k into Montessori school funds
  • Projects collapsed → investors claim they lost both capital and immigration pathway
  • Lawsuit alleges EB5AN:
    • actively solicited investors
    • advised on suitability
    • processed subscriptions + directed wires
    • took transaction-based compensation
  • Key claim: they were acting like a broker-dealer without SEC registration / FINRA membership ( not shocking here)

I guess what happens now? Everyone in the industry knows EB5AN is obsessed with marketing and they go out of there way to over-market every other regional center.

the amount of complaints that come out of peoples mouths about how their team sounds like sleazy used car salesman, is sad.

I'm posting for awareness, please guys.. DYOR and don't be snubbed by these agents who claim they'll get you a discounted admin fee or whatever. All these agents just go wherever the highest check is, they don't care about you.

u/JohnnysBananas — 1 month ago
▲ 4 r/EB5Questions

Genuine question for people who have gone through the EB-5 process.

Why do so many people looking for EB-5 still rely heavily on brokers when the incentives are so obviously misaligned?

In almost every case I’ve looked at, the broker is being paid by the project they place you into, not by you. That means the “advice” often feels less like independent guidance and more like sales.

A few things that seem hard to ignore:

1-Many brokers push the same handful of projects repeatedly

2-Fee structures are often not transparent and very little downside if the project underperforms years later

3-Investors assume someone vetted risk when often they just distributed marketing materials

For something where you are wiring a large amount of capital and your immigration outcome depends on execution, it feels strange that many people trust whoever has the strongest relationship or the best pitch.

I’m not saying every broker is bad. Some clearly add value.... but not the majority.

But if you used one, did they genuinely improve your decision, or did they just sit between you and the project while collecting a commission?

Curious to hear real experiences, especially from anyone who felt they made the wrong choice.

PS - I just found out the other day, that some of these brokers get up to like 200k, INSANE!

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u/JohnnysBananas — 2 months ago