It appears that regional centers that failed to pay the Integrity Fees (mandatory under RIA) and who received NOITs (Notice of Intention to Terminate) have now been given a reprieve.  

In Episode 205 of Global Investment Voice, Mona and Rebecca discussed how USCIS had sent out termination notices to over 100 EB-5 Regional Centers based on non-payment of integrity fees! There was an uproar, Kelly Freis, CEO of International Growth Capital, LLC, stated: “It’s unfair because these regional centers think that they’re in compliance, and they’re filing their documents and they have people filing papers and paying fees, and then they’re getting a notice in the mail. They don’t get a notice that they did anything wrong. They just get a notice that they’re going to be terminated. […] And the way that they’re processing these records are not up to the standards that they’re requiring the regional centers to uphold. So, this is a blatant double standard, and it should be against the law.” – Kelly Freis. 

Background

One of the affected Regional Centers immediately filed a suit in Federal Court against USCIS N. Rockies Reg’l Ctr. v. Jaddou, CV 24-99-M-DWM.  

Northern Rockies had been designated as an EB-5 regional center in April 2011, allowing it to pool investments from noncitizens seeking green cards through the EB-5 investor visa program, which provides permanent residency to foreigners who invest in job-creating U.S. businesses. But in late June, USCIS notified Northern Rockies that it intended on terminating its designation after it failed to pay a $20,000 annual fee by the Dec. 30 deadline. 

Northern Rockies sued, arguing that USCIS failed to give it proper notice that it missed the payment. It argued that the EB-5 Reform and Integrity Act of 2022, or RIA, which established the annual fee, required USCIS to give regional centers notice of a late payment and an opportunity to pay before removing the center’s EB-5 designation. It acknowledged it hadn’t paid the payment on time, but explained the fee had gone unpaid while it was being bought out by a new owner. Had USCIS informed it earlier of the missing payment, it would have paid, Northern Rockies said.  

U.S District Judge Donald Molloy ordered U.S. Citizenship and Immigration Services to maintain the RC’s  designation to participate in the EB-5 investor visa program while he reviewed the claim that the agency moved to terminate its designation without proper notice. 

The center further argued for an injunction while its case was underway, arguing that letting its designation lapse would risk millions of dollars’ worth of EB-5 investments collected for ongoing construction projects that total $1.7 billion, as well as the green cards of more than 500 investors.  

This appears to have been the right move. 

USCIS Response

Thanks to the pushback, there appears to be a change in the air as USCIS has begun allowing Regional Centers affected by these arbitrary terminations the opportunity to pay the missed fee between October 1, 2024, through December 30, 2024. Interestingly, this does not appear to be a blanket approval for all regional centers, but only ones who received and responded to the NOITS. It is not clear if the situation will change.  

Nonetheless, it appears it is sometimes worth standing up and protesting when USCIS chooses to act like a playground bully.