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Fraud on Investors in EB-5 Investments: Caveat Emptor! Part 10

Fraud on Investors in EB-5 Investments: Caveat Emptor! Part 10

EB-5 Fraud Courtroom

How to Address EB-5 Fraud if You Fall Victim

If you suspect that you have become the victim of EB-5 Fraud, it is important for you to know your rights, and to create a strategy for addressing how you have been defrauded.  As described earlier, the legal system in the United States is quite different from other systems in that while incentives are created to avoid fraud, the system is better equipped to resolve disputes based upon fraud.  

Why do Victims of EB-5 Fraud Not Seek to Redress?

One troubling aspect of EB-5 fraud is that often investors with good cases are not interested in seeking redress.  There are a number of reasons for this, not least of which is the fact that the legal system seems to have already let the investor down by not preventing the fraud in the first place.  Further, the distrust reaches to all individuals involved in the transaction, and hiring a lawyer is frightening, because the first American lawyer the investor hired created an extremely limited scope representation, and is often perceived as having only completed a form, all the while having conflicts of interest.  The lack of sound attorney client relationships are another reason why EB-5 Fraud can go unpunished if the SEC does not involve itself.  The industry has high barriers built to stop investors from pursuing the protection of their rights.

The Distrust of the System

In 2016, Oppenhuizen interacted with two investors who both had strong EB-5 Fraud cases, and a good likelihood of recovery.  Neither retained Oppenhuizen, nor did either of them retain another attorney to protect his or her rights.  This was incredibly disappointing, but was the result of a distrust of the system, and a misperception of how politically connected people are treated in the United States’ court system.  The result of the refusal to pursue litigation against individuals who perpetrate fraud is that one deterrent, specifically being held civilly and potentially criminally liable for one’s actions is less effective.  Knowing that it is unlikely that investors will take steps to protect themselves makes fraud easier and less risky.

Investors are not at fault for fraud in any way shape or form.  But their failure to take affirmative steps to protect themselves after being defrauded emboldens those who are at fault.

If you are an investor who may have been defrauded by an EB-5 investment scheme, you should immediately retain an attorney who understands both litigation and EB-5 law.  Retaining such an attorney as soon as possible increases the likelihood of success.  If you may be involved in a class action lawsuit in relation to an EB-5 investment fraud case, you should retain your own attorney to determine whether to opt out of the class, and what your likelihood of success is if you were to proceed outside of the class or within it.


Oppenhuizen is dedicated to the protection of investors in EB-5.  We are dedicated to the eradication of EB-5 Fraud.  We do so by offering a new and better way for investors to engage with their attorneys, and a smoother transition to life in the United States.  Please contact us via email, WhatsApp, WeChat or over the telephone to discuss your situation, and how we can provide better service to you!