(i) In General
Every regional center designated under subparagraph (E) must submit an annual statement, as prescribed by the Secretary of Homeland Security. The statement should include: (I) a certification stating that, to the best of the certifier's knowledge after a due diligence investigation, the regional center complies with clauses (i) and (ii) of subparagraph (H); (II) a certification as described in subparagraph (I)(ii)(II); (III) a certification stating that, to the best of the certifier's knowledge after a due diligence investigation, the regional center complies with subparagraph (K)(iii); (IV) a description of any pending material litigation or bankruptcy proceedings, or material litigation or bankruptcy proceedings resolved during the preceding fiscal year, involving the regional center, the new commercial enterprise, or any affiliated job-creating entity; (V) an account of all individual alien investor capital invested in the regional center, new commercial enterprise, and job-creating entity; (VI) for each new commercial enterprise associated with the regional center: (aa) an account of the aggregate capital invested in the new commercial enterprise and any job-creating entity by alien investors under this paragraph for each capital investment project being undertaken by the new commercial enterprise; (bb) a description of how the capital described in item (aa) is being used to execute each capital investment project in the filed business plan or plans; (cc) evidence that 100 percent of the capital described in item (aa) has been committed to each capital investment project; (dd) detailed evidence of the progress made toward the completion of each capital investment project; (ee) an account of the aggregate direct jobs created or preserved; (ff) to the best of the regional center's knowledge, for all fees, including administrative fees, loan monitoring fees, loan management fees, commissions, and similar transaction-based compensation, collected from alien investors by the regional center, the new commercial enterprise, any affiliated job-creating entity, any affiliated issuer of securities intended to be offered to alien investors, or any promoter, finder, broker-dealer, or other entity engaged by any of the aforementioned entities to locate individual investors: (AA) a description of all fees collected; (BB) an account of the entities that received such fees; and (CC) the purpose for which such fees were collected;
(gg) any documentation referred to in subparagraph (F)(i)(IV) if there has been a material change during the preceding fiscal year; and (hh) a certification by the regional center that the information provided under items (aa) through (gg) is accurate, to the best of the certifier's knowledge after a due diligence investigation; and
(VII) a description of the regional center's policies and procedures designed to enable the regional center to comply with applicable Federal labor laws.
(ii) Amendment of Annual Statements
The Secretary of Homeland Security: (I) shall require the regional center to amend or supplement an annual statement required under clause (i) if the Secretary determines that such a statement is deficient; and (II) may require the regional center to amend or supplement such annual statement if the Director determines that such an amendment or supplement is appropriate.
(iii) Sanctions
(I) Effect of Violation The Director shall sanction any regional center entity in accordance with subclause (II) if the regional center fails to submit an annual statement or if the Director determines that the regional center: (aa) knowingly submitted or caused to be submitted a statement, certification, or any information submitted pursuant to this subparagraph that contained an untrue statement of material fact; or (bb) is conducting itself in a manner inconsistent with its designation under subparagraph (E), including any willful, undisclosed, and material deviation by new commercial enterprises from any filed business plan for such new commercial enterprises.
(II) Authorized Sanctions The Director shall establish a graduated set of sanctions based on the severity of the violations referred to in subclause (I), including: (aa) fines equal to not more than 10 percent of the total capital invested by alien investors in the regional center's new commercial enterprises or job-creating entities directly involved in such violations, the payment of which shall not in any circumstance utilize any of such alien investors' capital investments, and which shall be deposited into the EB–5 Integrity Fund established under subparagraph (J); (bb) temporary suspension from participation in the program described in subparagraph (E), which may be lifted by the Director if the individual or entity cures the alleged violation after being provided such an opportunity by the Director; (cc) permanent bar from participation in the program described in subparagraph (E) for 1 or more individuals or business entities associated with the regional center, new commercial enterprise, or job-creating entity; and (dd) termination of regional center designation.
(iv) Availability of Annual Statements to Investors
Not later than 30 days after a request from an alien investor, a regional center shall make available to such alien investor a copy of the filed annual statement and any amendments filed to such statement, which shall be redacted to exclude any information unrelated to such alien investor or the new commercial enterprise or job creating entity into which the alien investor invested.
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