Last October, we advised our readers that U.S. Citizenship & Immigration Services (USCIS) had sent out several Notices of Intent to Terminate (NOITT) regional center designation to various regional centers around the nation. We also warned that this appeared to be an upcoming enforcement trend by USCIS to address complaints of fraud and abuse in the EB-5 Regional Center Program. Well, it appears that USCIS has followed through with its threat.  As of January 9, 2015, USCIS terminated the regional center designation for at least 16 EB-5 regional centers.

As a way of background, USCIS may terminate a regional center’s participation in the Immigrant Investor Program when a regional center fails to: (i) promote economic growth as required under the EB-5 regulations, or (ii) submit Form I-924A on an annual basis, on a cumulative basis and/or as otherwise requested by USCIS to demonstrate continued eligibility.  Once a regional center’s designation has been terminated by USCIS, investors are precluded from using an investment within a terminated regional center as a basis to establish eligibility for an immigrant visa under the Immigrant Investor Program.

Below is the list of 16 terminated EB-5 regional centers that are no longer on the list of approved regional centers:

Because the ramifications of losing a regional center designation is significant, regional centers should seek the advise of immigration counsel to ensure that a regional center is timely complying with all of its obligations under the EB-5 regulations.