What is the so-called pyramid fraud in the EB-5 program?

The so-called pyramid fraud in the EB-5 program refers to scams in which investment promoters set up schemes resembling a financial pyramid: the returns promised to investors depend primarily on bringing in new participants, not on the performance of a real business that creates jobs.

EB-5 requires that capital be invested in a legitimate enterprise aimed at creating jobs in the United States. In fraudulent schemes, funds are misappropriated and fail to serve that purpose, compromising both the integrity of the program and the residency petition of those who invested in good faith.

Some red flags to watch for:

• Promises of guaranteed returns or certain visa approval.
• Emphasis on recruiting new investors rather than showcasing the actual project.
• Lack of transparency about where and how the money will be used.
• Pressure to decide quickly and offers that seem too good to be true.

To protect yourself, thoroughly investigate any offering, demand clear documentation of the project and job creation, and confirm the rules through official USCIS sources, ideally with the support of a trusted immigration professional.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.