John Burson  edited Friday, July 12, 2024

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EB-5 Visa Fraud! Investors seeking permanent residency in the US cheated

The Securities and Exchange Commission (SEC) has taken legal action against Nadim Ahmed, a New York-based businessman, and his companies, NuRide Transportation Group, LLC, and NYC Green Transportation Group, LLC. The charges involve fraudulent misrepresentations in securities offerings related to the EB-5 Immigrant Investor Program, which grants investors seeking permanent residency.

From June 2014 to December 2018, Ahmed, NuRide, and NYC Green allegedly misled investors by falsely stating that NYC Green would adhere to EB-5 visa program requirements. They also claimed that NYC Green’s principals had contributed $11 million to the company. Contrary to these assurances, key revenue-generating contracts were placed under NuRide’s name instead of NYC Green's, causing discrepancies.

Ahmed is accused of using an investor’s funds to settle a prior SEC case involving one of his companies, and the SEC also implicated Mehreen Shah (Mona Shah), a New York-based immigration attorney, her law firm, and three other entities linked to Ahmed's and/or Shah for offering unregistered securities that amassed over $66 million from more than 100 investors between June 2014 and November 2022.

The complaint filed in the U.S. District Court in the Southern District of New York alleges violations of antifraud and registration provisions of federal securities laws. The SEC seeks permanent and conduct-based injunctions, disgorgement, prejudgment interest, and civil penalties.

Investors in the offerings have not received unconditional permanent residency status or a return on their investment. The SEC emphasizes the importance of accurate disclosures in offering materials and compliance with registration requirements or exemptions to protect investors.

The SEC’s Office of Investor Education and Advocacy issued an Investor Alert, cautioning against fraudulent securities offerings through the EB-5 program.

https://www.financialexpress.com/business/investing-abroad-us-sec-sues-businessman-over-eb-5-immigrant-investor-program-3320671/