Bloomberg - An Immigrant-Funded Biotech Center in Rural Vermont? What Could Go Wrong? 13min

Jay Peak had consisted only of a ski area and a roach-ridden lodge. Now it had three hotels, six restaurants, some 200 cottages, an indoor water park, an ice rink, a spa, and a convention center, all tended to by 600 employees. The $280 million transformation had been made possible by a U.S. government program known as EB-5, which allows prospective immigrants to invest $500,000 in hard-up areas in exchange for temporary residency for themselves and their families. Anyone whose investment creates 10 jobs can then become a permanent resident. The only faster way to become an American is to marry one. ... The EB-5 program has opened up all sorts of possibilities since it was started in 1990—mischief, abuse, and fraud among them. Initially it required investors to put in $1 million and show direct evidence that the money had led to those 10 new jobs. But after two years, Congress modified the program to encourage investment in rural and underdeveloped areas, permitting prospective immigrants to invest less money in projects and count “indirect” jobs estimated by economic models. ... These projects get sponsored by federally approved regional centers, which serve as economic-development organizations drawing on EB-5 money. There are now 861 such centers, all of which—except for Vermont’s—are privately run. ... The tangled financing they’d uncovered left more than half of the 731 foreigners who had placed their money with Stenger and Quiros vulnerable to deportation, and threw $83 million that had been invested in the biotech project into limbo.