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Calif. EB-5 Promoter Defends Program in South Dakota

EB-5 promoter Ali Jahangiri is doing damage control in South Dakota. Mr. Jahangiri defended the EB-5 visa investment program in an interview with SDPB's Steve Zwemke Tuesday. The Aberdeen American News gave him inches in Friday's paper to rebut U.S. Senator Charles Grassley's and S.D. Rep. Stace Nelson's accusations that EB-5 imperils national security to grant favors to rich immigrants.

Jahangiri asserts that EB-5 investors get no preferential treatment in immigration, but he cannot get around the fact that people who can plunk $500,000 into a South Dakota dairy, turkey plant, or casino get to bring their families to America sooner than the foreigners who might want to do the actual work at those enterprises. As one of the experts on EB5Investors.com says, "The EB-5 program is one of the fastest ways to receive your green card." Less wealthy immigrants may wait for years to get their legal status.

Jahangiri tells SDPB that we can't measure the societal gains of EB-5 immigrant investment in pure dollars. Ah, yes, the intangibles! That's usually what we turn to when the numbers don't add up. Canada is finding the numbers for rich immigrant favoritism don't add up: as I reported two weeks ago, Canada is ending its version of EB-5 (which inspired ours) because, on straight economic analysis, it doesn't pay off.

It is worth noting that Jahangiri makes money promoting EB-5. From California, he runs EB5Investors.com and EB-5 Investors Magazine, which churn out a relentless stream of pro-EB-5 articles. He and his media team won the 2013 EB-5 Media Service Award from Brian Su's EB-5 promotion blog. Jahangiri organizes and promotes EB-5 conferences to connect entrepreneurs, investors, and lawmakers.

Reaching for connections, I note that Jahangiri is a founder of Gen Next Inc., and exclusive pro-business club that charges invited members $10,000 to join. Among the luminaries to whom Gen Next has treated its high rollers to private parties is South Dakota's Congresswoman Kristi Noem. Whether Jahangiri and friends discussed EB-5 with Noem over Laguna Beach cocktails in 2011 is unknown.

Related Reading: Jahangiri's current current magazine edition, with articles posted online on Thursday, includes an article advising regional centers on securities compliance. EB-5 attorney Elizabeth Krukova makes clear something we discussed here in December, that the investment opportunities peddled by South Dakota's regional center and other EB-5 organizations are indeed securities and need to comply with SEC rules.

27 Comments

  1. mike from iowa 2014.03.02

    He didn't happen to mention how many Filipinos were invested in South Dakota,by any chance,did he? Curious minds want to know.

  2. rick 2014.03.02

    Using EB-5 to raise investment funding is not the important issue in Mike Rounds' Governor's Office of Economic Development. Stace Nelson is wasting his and our time by putting the spotlight on the EB-5 program.

    The issue is the culture of criminal behavior among Rounds' political appointees who abused their access to our state's funds. As for Rounds, he was and still is complicit in the criminal behavior of his own administration. They took other people's money, they created a secret bank to remove public transparency, they misused the money, they made the records disappear and they hurt hundreds of people's lives. And maybe that means nothing to Mike Rounds' handpicked Attorney General, which defines his own values and complicity in Rounds' GOED Scam, but it should mean something to all citizens of our state.

    We, the people, have the ability to control the criminal culture in Pierre. We can root out all of the Rounds holdovers in November. We can refuse to reward Mike Rounds with a seat in the U.S. Senate now that we know how corrupt he is. We are not powerless.

  3. Tara Volesky 2014.03.02

    Mike Myers is trying to get the information about EB-5 out in the media and to the people. He can help break this case but the media is ignoring him. The Democrats have the information, what are they waiting for. Lora Hubbel has the information also and is getting no response from the media. I am sure you have the information also Cory. I wouldn't take my orders from the Democrat party and wait. Mr. Sandven is the only person I would trust investigating this scandal. He will have much more info than the Feds. The new Governor needs to turn Sandven loose and he will definitely get to the truth, and blow this thing wide open. This man knows a lot more than the Feds. I know Myers was very impressed with him.

  4. owen reitzel 2014.03.02

    then the Feds need to interview Mr. Sandven

  5. Lanny V Stricherz 2014.03.02

    Tara, If Cory doesn't resent the implication that he is withholding information at the behest of the Democrat party, I do. He has shed more light on this issue than anyone.

  6. Roger Cornelius 2014.03.02

    Mr. Sandven needs to talk to Cory.

    Having followed Cory's investigation of the GOED scandal from the outset, I do not get the impression that he is beholden to anybody, including the South Dakota Democratic Party. I can't think of a single reason why Cory would withhold information from anybody, mostly his readers.
    I would challenge anybody to name me a single reporter, blogger or politician that has done more to investigate and report on this scandal than Cory has.

  7. caheidelberger Post author | 2014.03.03

    To be clear, Roger, I have posted only a fraction of the documents I have seen. I have focused so far on the parts of the story that seem to have legs, mostly things I can prove or at least facts that may point toward something we can prove later. I am reading and rereading more documents for material to help make sense of the story. So I guess you could say, technically, that I am "withholding" information... but only from an editorial perspective, not a political perspective. I'm sharing the information that helps tell the story.

    But permit me to reaffirm Lanny's statement: the Democratic Party has not sent me any orders or suggestions on how to cover the EB-5 story. I write stories of my choosing.

  8. caheidelberger Post author | 2014.03.03

    Larry's link offers us Michelle Malkin blasting EB-5. I can hardly stand quoting her, but she suffers similar discomfort advising us to follow Canada in axing our visa-buying program: "Recklessly peddling foreign investor visas for the precious privilege of entry into our country is bad for our sovereignty, bad for workers and good for corruptocrats. Moreover, history shows that government is always bad at picking economic winners and losers. If Canada can come to its senses on this, why not America?"

  9. Tara Volesky 2014.03.03

    Owen, yes the Feds and Media need to interview Mr. Sandven, but they won't unless they are pressured because Sandven knows to much and I think the Feds are stalling on this until after the election. Cory you have yet to call Myers and Hubbel and ask them about the EB-5 scandal and what they know and what information they may have. Ask Lora Hubbel what Bollin had to say. Joe Low should be investigating this scandal. I am sure he knows all kinds of Government emplyees he has worked with under the 3 Republican administrations.

  10. owen reitzel 2014.03.03

    I can't believe Brandon Johnson would wait until after the election if he had information. Don't see the incentive in that.
    I'd think just the opposite, that he'd want to do it as soon as possible. My guess things like this take time and Johnson is doing a good job and letting the facts take him where they do-unlike Jackley

  11. caheidelberger Post author | 2014.03.03

    Owen, you mean Brendan Johnson, right? Brandon Johnson works in Gant's office. These guys need middle names!

  12. Tara Volesky 2014.03.03

    Owen, then you don't know SD politricts. Don't let them fool you. Where is the information from Johnson. Has he gotten all of Sandvens information? Maybe he recused himself from the case because of his friendship with the attorney general. I heard all kinds of stories. Cory who is in charge here? This has been going on for several months and no information. My gosh in NJ the people get the play by play every day on bridge-gate which now has opened a can or worms into other investigations. The legislators and media are very transparent with the people of NJ. Like I said, I do not trust the attorney generals office or the Feds. Too many friendships in a very small state. We need an outside investigative lawyer who is Steven Sandven. He is doing this for the people and he should be paid for this. He is a true professional who a kick-@ss investigator. He knows how to follow the money........Myers trusts the outsider.....Steven Sandven. And I do agree, Cory is the only reporter in SD you is truly providing us with information. And Cory how many interviews have you had with Brenden Johnson's office or the Argus Leader? The fact is, Sandven and Heidelberger are being ignored from the press and Feds over the EB-5 investigations. Correct me if I am wrong. I hope I am wrong.

  13. Roger Cornelius 2014.03.03

    Tara,

    What is holding back Sandven from releasing the information that he has? Does he have a website where he is disclosing what information he has discovered? Would Sandven consider working pro bono for the citizens of South Dakota?

    The GOED scandal is like a criminal case, it has to be built one block at a time. The Watergate scandal took years to evolve and took many twists and turns that were not directly relevant to the break-in itself.

    What I have observed in the difference in New Jersey's Governor Christie's scandal and our own, is that Christie is potential candidate for the presidency. In the bridgegate case, what exposed most of the scandal was the immediately availability of electronic communications. Emails, text messages and twitter accounts are easily traceable, it is all hard evidence.
    There doesn't appear to be a whole lot of electronic communication in this GOED scandal, at least that we know of.
    Timing is everything, the release of information for the greatest political impact is critical, as the primary and general elections draw closer we don't want voters to tire of the scandal and give Republicans an opportunity to cover their asses.

  14. Tara Volesky 2014.03.03

    Roger, I question if there is even an investigation going on. Prove it. Steve Sandven would love to share it with the media, but they are not interested. They have more important issues going on like who to sell weddings cakes too, and if Sioux Falls should have an indoor or outdoor pool. Mr. Sandven has been investigating EB-5 since 2009. As far as I am concerned he is the lone investigator. Where are the subpoenas. Have they indicted anybody? Who are the witnesses? I think we are getting the run around. This corruption goes beyond the GOED, check out the department of social services. Shirley Schwab. Roger, the primaries are only 3 months away. They will not tire of EB-5 scandal. They don't even know anything about it yet. 90% have no clue.

  15. owen reitzel 2014.03.03

    I'm bad. You're rught Cory miidle names are needed. lol
    Tara I think I know something about South Dakota politics but not everything. I can't beleive that there isn't a news outlet that would listen to Sandven if what he has is crediable.
    Have him send it to Cory! I'm guessing that Cory would talk about it-again if its credible. From what I've known of Cory if it's ligit then no matter who it affects he'll print it.
    Roger had a good idea. Have Sandven put it on his website if he has one.

  16. Roger Cornelius 2014.03.03

    Tara,

    Remember we are on the same side, we want the GOED scandal reported.

    Recently Sandven made statewide news in his revelations about the cost of getting documents from the state. Even the Rapid City Journal covered that, and Cory did several pieces on it.
    It seems to me that if Myers, Hubbel and Sandven, or anyone else for that matter, are holding the smoking gun, they have an obligation to report it to someone.
    We know that people at Daily Kos read Madville Times and likely other representatives of the media read it to.
    Cory has been doing an excellent job of separating political rhetoric from the tangible evidence he has access to, and like I said earlier, is building the case one brick at a time.

    To the point, I don't what Sandven, Myers or Hubbel have to report, but they have a perfect opportunity here at Madville.

    Cory would you allow a guest blog from Hubbel, Myers or Sandven?

  17. Tara Volesky 2014.03.03

    Roger, I guess it's up to Cory if he want's to go outside the Democrat bubble. Myers knows what the hell is going on. Sorry your parties are so tied together. It really should be about the issues and the people instead of what party you belong to. These issues should far out weigh party affiliation.

  18. Roger Cornelius 2014.03.03

    Tara,
    I don't believe is confined to the Democratic bubble.

    If Mike Myers knows what is going on with GOED why doesn't grab a great big microphone and tell the rest of us about it?

    Tara, is there is distinction between being an independent voter and a member of the independent party?

  19. Tara Volesky 2014.03.03

    I have sent all the information to MSNBC, Steve Kornacki, Rachael Maddow and Ed Schultz. Also 60 Minutes. This will soon break. We just can't quit because that's what our politicians want to happen. Just give up. Well that's not how I am wired. I am in this for the long haul. I hope you are too. Thanks.

  20. Tara Volesky 2014.03.03

    As soon as Mike Myers is officially on the ballot, WATCH OUT....He is going to unfold these scandals.

  21. Roger Cornelius 2014.03.03

    Tara,

    Have you sent the same information to Cory, or will you?

  22. Tara Volesky 2014.03.03

    He's already got the information. All he has to do is call Myers. He can also call his boy Joe Lowe who I am sure has all the information, but this election is not about fires and floods, its about corruption and change.

  23. mike from iowa 2014.03.04

    No offense,but you sound like one who has information but won't let it out in case it is wrong. Do you,yourself,have this information? Have you seen it? If so,what is stopping you from revealing it? I'm guessing Mr Cory has guidelines to follow requiring some tangible confirmation of facts before he can drop bombshells. .

  24. caheidelberger Post author | 2014.03.04

    Roger, I am open to guest columns from anyone with true, compelling stories to tell.

    Tara, if there is a story to tell, why is Myers waiting until he gets on the ballot to tell it? I haven't waited to get on a ballot to tell the parts of the GOED/EB-5 story that I can substantiate.

  25. Roger Cornelius 2014.03.04

    I'm starting feel as though Myers, Hubbel, and Sandven are holding South Dakota hostage by withholding vital information.

    Myers refusal to release information until he is on the ballot smacks of opportunism.

    The GOED scandal is political, make no mistake about it. Saying it is a search for the truth and not providing evidence makes people speculate as to motive.

  26. Tara Volesky 2014.03.04

    Mr. Sandven has been interviewed by an investigative reporter from a SD newspaper, and Lora Hubbel has also been interviewed. Mike Myers has not been interviewed yet, but that's OK. It doesn't matter who breaks the story or gets the credit. What matters is that the people get the information and are provided the whole truth. This reporter told me he has no ties to SD politics. That's good to hear. Roger, I can understand your concern that Mr. Myers is an opportunist......that couldn't be further from the truth. He just want's to be an advocate for the people. He's a good ole guy......not a good ole boy.

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