Thursday, December 12, 2013

Some concerns stem from investigation into Iranian operatives

WASHINGTON - Senator Chuck Grassley, Ranking Member of the Senate Judiciary Committee, today pressed the administration for answers about an Immigration and Customs Enforcement memo that raises significant national security questions about the EB-5 visa program, which is an avenue for foreign investors to participate in potential, new commercial enterprises in the United States in exchange for a U.S. visa.  The memo was written by the Homeland Security Investigations (HSI) arm of Immigration and Customs Enforcement.

In a letter to Immigration and Customs Enforcement Acting Director John Sandweg, Grassley wrote, "The HSI memo makes clear that overall, HSI believes the Regional Center model has significant flaws..."  Grassley also said the memo identified several areas of vulnerability within the EB-5 visa program.  The memo questioned whether the vulnerabilities could be fixed in order to "ensure the integrity of the program."

Grassley was especially concerned about a section of the memo that outlines how the EB-5 program "may be abused by Iranian operatives to infiltrate the United States."  According to the memo, HSI became concerned about the program while investigating operatives who allegedly "facilitate terrorism and are involved in an illicit procurement network that exports items to Iran..."

Here's a copy of the text of Grassley's letter to Sandweg.  A copy of the memo and letter can be found here.

 

December 12, 2013

 

VIA ELECTRONIC TRANSMISSION

 

John Sandweg

Acting Director

U.S. Immigration and Customs Enforcement

U.S. Department of Homeland Security

500 12th Street, SW

Washington, D.C. 20536

 

Dear Acting Director Sandweg:

I write to inquire about an internal U.S. Immigration and Customs Enforcement (ICE) memo that raises significant questions about U.S. Citizenship and Immigration Services' (USCIS's) EB-5 Regional Center program.  The memo is from Homeland Security Investigations (HSI), an investigative arm of ICE.  It appears to have been written in response to a request from Secretary Janet Napolitano.

One section of the memo outlines "concerns that this particular visa program [EB-5] may be abused by Iranian operatives to infiltrate the United States . . . ."[1] Two of the operatives allegedly "facilitate terrorism and are involved in an illegal procurement network that exports items to Iran for use by 'secret' Iranian government agencies."[2] According to the memo, one of the operatives acted as a representative in the U.S. for an Iranian front company allegedly run by an individual associated with Iran's Islamic Revolutionary Guard Corps.[3]

This is not the first time that Iranian operatives have been discovered operating in the United States.  In this spring of this year, Manssor Arbabsiar, who had both Iranian and U.S. passports, was sentenced for plotting with Iranian military officials to kill the Saudi Arabian ambassador by bombing a Washington, D.C. restaurant.[4] Earlier this fall, news outlets reported that the U.S. had intercepted an order from Iran to attack U.S. interests in the event of a strike on Syria.[5] In light of these facts, it is alarming to see documentation that appears to indicate Iranian operatives used the EB-5 program to try to obtain visas for their associates.

According to the HSI memo, ICE identified seven main areas of program vulnerability with the EB-5 visa:

1)      Export of sensitive technology/economic espionage;

2)      Use by foreign government agents/espionage;

3)      Use by terrorists;

4)      Investment fraud by regional center;

5)      Investment fraud by investors;

6)      Fraud conspiracies by investors and regional center; and

7)      Illicit finance/money laundering.[6]

The memo states: "The aforementioned vulnerabilities are directly affected by information gaps on the alien beneficiaries of the EB-5 program.  Unlike most other permanent resident visa classifications, EB-5 beneficiaries do not need to establish a significant and verifiable background for program eligibility."[7]

According to the memo, HSI made several suggestions for both information collection fixes and legislative fixes to close loopholes in the EB-5 program.  Of the information collection fixes, the memo states: "HSI proposed making changes to the USCIS forms (I-526, I-829, I-924, and I-924A) that are used by RC's [regional centers] and alien investors.  HSI felt that the forms did not collect enough information to determine the validity of either the RC's, the alien investors or the source of the investor's funds."[8]

The legislative changes proposed by HSI were: (1) doubling the minimum investment amount, (2) limiting the program to allow only active investors involved in managing and directing a business enterprise, and (3) eliminating the consideration of induced jobs for meeting the requirements of the program.  These suggestions were not included in the technical assistance provided by USCIS in June 2012 when the EB-5 program was being reauthorized.  The only HSI recommendation which appeared in any form in the technical assistance was a proposal for providing inflationary adjustments to the minimum investment amount, which is very different from doubling it.

The HSI memo makes clear that overall, HSI believes the Regional Center model has significant flaws and should be abandoned: "The principal change proposed by HSI was that the Regional Center Model be allowed to sunset, as HSI maintains there are no safeguards that can be put in place that will ensure the integrity of the RC model."[9]

Given these concerns with the EB-5 Regional Center program and information gaps on recipients of EB-5 visas, it is important that Congress have statistics on what happens after individuals enter the U.S. on an EB-5 visa.  Foreign investors who participate in the EB-5 program may receive conditional permanent residence for a two-year period.  However, it seems unlikely that they are ever removed from the country even if the conditions of their conditional status are not met because the required jobs weren't created within the required period.

Therefore, please respond to the following:

1.      Please produce all legislative and information collection recommendations made by ICE or any of its divisions for the EB-5 program.  Please provide in detail any specific changes recommended for USCIS forms I-526, I-829, I-924, and I-924A.

2.      For each of the above recommendations, please identify the date ICE proposed the recommendation and to what entities it was proposed.

3.      What is the current total number of EB-5 conditional residents whose request to remove conditional status was denied?

4.      Does ICE know how many EB-5 investors who were denied permanent resident status remain in the country?  Does ICE know the location of these foreign investors?  If so, please provide a status report, including how many are detained, how many are in removal proceedings, and how many have been removed from the country by ICE.

5.      Do you or your agency have any information as to why USCIS did not provide Congress with the legislative recommendations made by HSI, as indicated in the attached memo?

6.      What is ICE doing to help ensure that USCIS does not provide EB-5 visas to individuals and entities that are involved in international terrorism or proliferation operations, as was the case with Iranian operatives whose goal was to infiltrate the U.S. and export items back to their country?

7.      What is the current status of the Iranian case mentioned in the memo?

8.      What type of visas did the two Iranian operatives mentioned in the memo enter the U.S. on?

9.      Is the principal of the regional center referenced in the memo in the United States?  If so, what type of visa did the principal enter the U.S. on?

10.  For each individual associated with the principal of the regional center through TECS subrecord hits, please indicate whether or not the individual has entered the U.S. in the past or is currently in the U.S., as well as what type of visa each individual entered the U.S. on.

11.  What is the current immigration status of each of the individuals referenced in questions 8, 9, and 10?

Thank you in advance for your cooperation in this matter.  Please respond to these questions by January 1, 2014.  Should you have any questions regarding this letter, please contact XXXX of my staff at (202) 224-5225.  I look forward to your prompt response.

 

Sincerely,

Charles E. Grassley
Ranking Member
Committee on the Judiciary

WASHINGTON, Dec. 12, 2013 - The U.S. Department of Agriculture (USDA) today announced more than $18 million in grants to small businesses to conduct research and development that will lead to technological innovations in the agriculture industry. The awards were made by USDA's National Institute of Food and Agriculture (NIFA).

"USDA grants to small businesses have spurred the development of hundreds of technologies and products that help make American agriculture successful," said Agriculture Secretary Tom Vilsack. "Today's announcement is another example of USDA's focus on science and research that can strengthen the economy and create jobs across the nation. Innovative agricultural research has helped make agriculture one of the two most productive industries in the U.S. economy since 1980, but we need a new Food, Farm and Jobs Bill passed if we are to sustain it."

USDA made the grants through the Small Business Innovation Research (SBIR) program, with the goal to stimulate technological innovations in the private sector and to strengthen the role of small businesses in meeting federal research and development needs. The program also fosters and encourages participation by women-owned and socially- or economically-disadvantaged small business firms.

Companies initially apply for Phase I feasibility studies, which may be followed by Phase II research and development projects. Phase I grants are limited to $100,000 and a duration of eight months, while Phase II grants are limited to $450,000 and a duration of 24 months. Approximately 50 percent of Phase I projects continue onto Phase II.

In fiscal year 2013, USDA awarded $5,862,650 in Phase I grants and $12,417,504 in Phase II grants. A complete list of fiscal year 2013 SBIR awards is available online: www.nifa.usda.gov/newsroom/news/2013news/sbir_grantees.html

Since 1983, the USDA SBIR program has awarded more than 2,000 research and development grants to American-owned, independently operated, for-profit businesses with 500 employees or fewer.

USDA NIFA administers the SBIR program, with funding provided by the Animal and Plant Health Inspection Service, the Agricultural Research Service, NIFA, the Economic Research Service, the National Agricultural Statistics Service, and the U.S. Forest Service.

Through federal funding and leadership for research, education and extension programs, NIFA focuses on investing in science and solving critical issues impacting people's daily lives and the nation's future. More information is at www.nifa.usda.gov.

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USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).

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EVENT: Saturday, DECEMBER 14, 2013, at 11:00 am

On Saturday, December 14, Moms will gather at over 50 events in more than 35 states to honor the victims of the tragedy in Newtown and the thousands of Americans lost to gun violence every year. All events will include a communal bell-ringing to remember the victims and to show our resolve to never again be silent about gun violence. These events are co-sponsored by Mayors Against Illegal Guns.

In Des Moines, we'll hear from Rev. David P. Sickelka, Rev. Cheryl Thomas, Calvetta Berry of Mother's Against Violence, Rick Miller of OFA and Mayor Frank Cownie about the need to reduce gun violence. Our local sponsors, with whom we share a common goal of gun violence prevention, include The Interfaith Alliance of Iowa, Moms Demand Action for Gun Sense in America, Mayors Against Illegal Guns, Organizing for Action, American Friends Service Committee, Mother's Against Violence, The Ecumenical Peace Committee, The Methodist Federation for Social Action and Iowans for Gun Safety.  We'll ring bells loudly, honoring the first anniversary of the Sandy Hook tragedy with a promise to continue making noise on gun reform until change comes.

More information is available here: http://momsdemandaction.org/no-more-silence/

WHO:

•    Rev. Cheryl Thomas, Chapter Leader, Moms Demand Action for gun Sense in America

•    Calvetta Berry, President, Mother's Against Violence

•    Mayor Frank Cownie, Mayor of Des Moines, Mayors Against Illegal Guns

•    Rick Miller, Gun Issue Lead, OFA - Organizing for Action

•    Rev. David P. Sickelka, Board member, Interfaith Alliance of Iowa

 

WHERE: Ding Darling Indoor Shelter at Birdland Park/Union Park, 2100 Saylor Rd in Des Moines, Iowa

WHEN: Saturday, December 14, 2013, 11:00 am

About Moms Demand Action for Gun Sense in America or on Twitter @MomsDemand.

About Mayors Against Illegal Guns

Since its creation in April 2006, Mayors Against Illegal Guns has grown from 15 members to more than 1,000 mayors from across the country. We have more than 1.5 million grassroots supporters, making us the largest gun violence prevention advocacy organization in the country.  The bipartisan coalition, co-chaired by New York City Mayor Michael Bloomberg and Boston Mayor Thomas Menino, has united the nation's mayors around these common goals: protecting communities by holding gun offenders accountable; demanding access to crime gun trace data that is critical to law enforcement efforts to combat gun trafficking; and working with legislators to fix weaknesses and loopholes in the law that make it far too easy for criminals and other dangerous people to get guns.  Learn more at www.mayorsagainstillegalguns.org