Zhang v. USCIS Challenges EB-5 Rule

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Zhang et al v. USCIS is a class action lawsuit filed on behalf of 134 EB-5 investors or potential investors, was formally filed in June 2015 (Case Number 1:15-cv-00995). It seems to be gaining publicity lately as it weaves it way through the litigation process.

The lead plaintiffs, Chinese and Japanese businessmen Huashang Zhang and Masayuki Hagiwara, are represented by the law firm of Kurzban Kurzban Weinger Tetzeli & Pratt PA. The impetus for the suit stems from the USCIS denial of their I-526 petitions. The denial was based on the rule that cash investments made through the EB-5 program must be capitalized and documented evidence thereof must accompany the I-526 petitions.

In fact, the lead plaintiffs in particular, borrowed their investment funds from companies they own. The USCIS ruled that their cash was not collateralized, but was actually an indebtedness – the polar opposite of the required collateralization.

Since they really have no leg to stand on, the suit claims that the USCIS rule is arbitrary and capricious.

– See more at: http://www.datsyn.com/article/4854/2015/10/27/Zhang-v-USCIS-Challenges-EB-5-Rule#sthash.YqguZwff.dpuf