A New York businessman named Nadim Ahmed has been charged with fraud and unregistered sales of securities by the Securities and Exchange Commission (SEC). The SEC alleges that Ahmed and his companies made false statements to investors about the EB-5 Immigrant Investor Program.
The EB-5 program allows foreign investors to get a green card if they invest in a U.S. business that creates jobs. Ahmed allegedly told investors that his companies would comply with the EB-5 program rules and that they would get a green card. However, the SEC alleges that Ahmed did not comply with the program rules and that investors did not get a green card.
Ahmed is also being charged with offering unregistered securities. This means that he did not register the securities with the SEC, which is illegal. The SEC is seeking to have Ahmed pay fines and to be banned from participating in the securities industry.
The SEC’s charges against Ahmed are based on a complaint filed in U.S. District Court for the Southern District of New York. The complaint alleges that Ahmed raised over $66 million from investors through his companies.
The EB-5 program has been criticized for being a way for wealthy foreigners to buy their way into the United States. The Trump administration has proposed reforms to the program, including raising the minimum investment amount and requiring that investments be made in areas of high unemployment.
The SEC’s charges against Ahmed are a reminder of the risks of investing in EB-5 projects. Investors should carefully consider the risks before investing in any EB-5 project.