Pursuant to a recent announcement by the U.S. Embassy in Israel, E-2 Investor visas will be available to Israeli citizens starting May 1, 2019. While the bill granting Israeli citizens eligibility for the United States E-2 Treaty Investor visa was signed into law in 2012, the availability of visas was delayed by lengthy negotiations over the final terms of the reciprocal agreement between Israel and the United States. Fortunately, the terms of the reciprocal agreement between the two countries have now been finalized, allowing for the issuance of E-2 investor visas to Israel citizens starting in May.
The E-2 investor visa is available to citizens of qualifying countries who are actively engaged in the development and direction of a United States enterprise. In order to qualify for the E-2 visa, the foreign investor must have already invested, or be in the process of investing, a substantial amount of capital into the United States company. Although the list of qualifying nations for the E-2 visa includes over 70 countries, that list did not include Israel – until now. (more…)
Many U.S. startups are co-founded by foreign nationals, and for those that are not, all start-ups need capital. Fortunately, it is not necessary to limit the potential investor pool exclusively to U.S. citizens and permanent residents. A large number of U.S. startups are either co-founded or funded by foreign investors, and the U.S. government understands that in order to attract foreign investment into the U.S. economy there must be designated visa categories available to those investors. These specific visa categories were established to allow investors and co-founders to travel to the U.S. to manage and oversee their investment. While a wide variety of visas may be applicable to any situation, the two most common visa categories utilized by foreign investors and entrepreneurs are the E-2 and the L-1A “new office” visa. (more…)
The Securities and Exchange Commission (SEC) is keeping an eagle eye on EB-5 projects these days, as evidenced by a dramatic increase in the number of fraud cases the agency has filed in federal courthouses across the country. EB-5 refers to the type of visa the government issues to immigrants who invest large sums in U.S. commercial projects that create or maintain a minimum of 10 jobs.
After filing only one EB-5 fraud case in 2014 and two the year before, the SEC filed five EB-5 fraud cases in 2015 and another two so far this year. MSK’s Corporate & Business Transactions attorneys, who practice in this area of law, are noticing that most of these cases accuse issuers of EB-5 offerings of defrauding foreign investors by making misrepresentations in securities offering documents.
Not only does MSK assist clients in preparing EB-5 offering documents, we also defend issuers in SEC enforcement actions. MSK attorneys are currently representing the defendant in two high-profile EB-5 fraud cases, filed in 2015 and 2016We also counsel our clients on how to best conduct their EB-5 offerings and operate their EB-5 projects to comply with the law and avoid the SEC’s heightened scrutiny. (more…)