"Wealthy Mexicans Are Increasingly Investing in the U.S. to Escape Cartel Violence."

Here is an excerpt from Teke Wiggin's article on FoxNews.com:

"Members of the Mexican elite are filing for EB-5 visas, which can grant the well-heeled financiers and their families green cards in exchange for investments in projects demonstrated to create or sustain 10 U.S. jobs... [There is] a rapidly increasing number of wealthy Mexicans to who are attempting to escape the violence by investing $500,000 or more in American business projects - thereby earning legal and permanent residency status in the U.S. The majority of the investments are arranged through so-called “regional centers,” designated public or private economic units, which according to law accept a minimum of $500,000 for economic growth projects in rural or high unemployment areas, or a minimum of $1 million for projects outside such areas. Mexicans last year made up a small fraction of EB-5 applicants -- who are approved around 75 percent of the time -- with just 34 filings, according to the U.S. Bureau of Citizenship and Immigration Services. By contrast, more than 1,200 Chinese applied for the visa. But Marco Ramirez, director of USA Now, a Texas regional center that markets itself exclusively to Central and South Americans and operates in the Texas counties of Webb, Zapata, Starr, Hidalgo, Willacy, Kenedy and Cameron, says his organization has raised $90 million from 160 Mexican investors since June 2010, and expects to have about 280 commitments by the year’s end... The process, they argue, ensures all EB-5 holders who receive permanent residency rights have done so to the benefit of U.S. communities. But some critics see things differently, asking whether rich Mexicans should be able to effectively buy residency in the U.S." Link to Full Article

Analysis: I found this to be a fascinating article because I didn't know anything about the EB-5 visa - or its requirements and privileges - before finding this article through a group I follow on Twitter. Of course, my biggest question - both to myself, my readers, and our government - is, is this fair? Essentially, we're selling permanent residency to foreigners with deep pockets. So is the EB-5 visa ethical?

This particular visa category was created by the Immigration Act of 1990, so it's been around for a couple of decades. It's also available to all foreigners, not just Mexican nationals, and the money goes towards US projects that generally benefit communities in dire need. The investor doesn't have to have any say in the project itself, although if he or she wants a more hands-on role in how the money is used, then the minimum shoots up to $1 million.

I did find it interesting that only 34 Mexican applications came in last year, compared to over 1,200 Chinese applicants. Of course, the population of China is considerably higher than that of Mexico, and there are probably more Chinese millionaires than Mexican millionaires. However, it's not like the drug war violence just started yesterday; I'm curious why the number of anticipated applicants, if Marco Ramirez's projections turn out to be accurate, is only shooting up now.

It's tough for me to say if the EB-5 visa is a bad thing, a good thing, or somewhere in a gray area. It's probably the latter. After all, the money is doing a lot of good in communities that are in need of capital investment. Our economy is hurting, so the boost in the injection of dollars from the outside is a huge help. However, Mexico's economy is hurting even worse than ours, and that's money leaving their country that could be invested in Mexican projects. Of course, given the situation with corruption in Mexico, it's hard to say how much of those investment dollars would actually go towards a worthy project, and how many would go towards greasing palms and lining pockets.

As for the granting of instant permanent residency, that's the part that makes me uncomfortable. I've seen how hard "regular" immigrants work for that status, and it's not right that someone can just get it because they have money. Mind you, I'm not being naïve; there are a lot of things more critical in life than residency being bought and sold between people and governments. But this has been a legal option for more than twenty years, and I'm frankly surprised that there hasn't been more public debate about it.

One of the reasons I felt inclined to comment on this story - or at least vent my ambivalence about it - is that I'm getting more requests to testify in asylum cases than ever before, and I'm seeing a lot of stories of Mexicans whose lives would be in great danger if deported back to Mexico. That doesn't excuse the fact that most arrived in the US illegally, or are in blatant violation of federal immigration laws. However, the granting of asylum to these people - no matter how blatant the threat to their lives is - is close to impossible, and they barely have the money to pay me as an expert, let alone half a million dollars to be able to stay in the US.

Yet one could also argue that the wealthy in Mexico are under threat for the simple fact that they have money. Every day, they're moving targets for kidnapping and extortion. Because wealthy Mexicans are a rare breed, DTO members usually know who they are in every city and community, so they can't escape the drug lords' scrutiny. If they have the means to protect themselves and their spouses and children, why shouldn't they? The EB-5 visa program has strict requirements for proving the money the invest comes from legitimate sources, and the results of their investments are examined over the course of two years.

So if you can't tell by my back-and-forth on this, I'm still not sure what to think of the EB-5 visa program. As always, I'm very interested to hear my readers' own thoughts.

Comments

[Cheryl Stade]

Found your site as I was agonizing about the rampant drug murders in Mexico. This is what I think. The truth is very powerful. We in the U.S. are not telling ourselves the truth so we cannot help our neighbors in Mexico. The truth is not popular here. It is that those who buy illegal drugs here bear as much responsibility as the American and Mexican dealers for the destruction and murder reigning over our border. Supposedly addicts are all victims and ill so they are not held responsible for their behavior. Rubbish. Yes, addictions are hellish traps that drown even strong people but no one ever overcame an addiction without taking responsibility for the destruction caused by their choices. The "Just Say No " campaign was the most effective American campaign against illegal drug abuse because it demanded people take responsibility for their actions. Experts today fly into a rage against any suggestion addicts should be considered partly responsible for the horrors just beyond our border. But they are wrong. We cannot help Mexico if we continue to deny the simple truth about our role in the violence. This makes me very sad. I am very sorry for our role in Mexico's drug war.

[Fred]

use a wide range of legally prescribed pain reducing medicines.) To begin, we have already tried and to some extent are still jailing addicts and users to no avail, except perhaps to fill up the prisons. Illegal trade in narcotics is simply that, murder and mayhem is an entity all it’s own. Simply because some high school or collage kids want to get together and smoke some grass does not make them murders, any more so than it did the soldiers who severed in Vietnam when My Lai went down. While have my suspicions I really don’t know exactly what is taking place in Mexico, but I feel certain it is less about the reported ‘’drug routes’’ than it is about something else. Cheryl from the words in your post I know you are concerned with a true heart of this mess we have, at least seeming with Illegal Narcotics at it’s base. I stand here today to tell you that it’s not about narcotics. I ask not that you simply take my word for that, but that you do your own research and decide for yourself. In this ’’age of the internet’’ you have plenty of source information to easily view, however let me suggest that you start your research with this book: To Have and To Hold, by John Hendrix.

In the same boat, grab and oar please: Fred

[anonymous_hero]

"Simply because some high school or collage kids want to get together and smoke some grass does not make them murders, any more so than it did the soldiers who severed in Vietnam when My Lai went down."
It does not make them murderers but it does make them criminals. EVERYONE who uses marijuana in the US is a criminal. It is against federal law. Not every vet in Vietnam was a criminal. The drug users do support murderers in their use of thier drug so they are murderers in conspiracy.

Thanks for playing and perhaps it is time for you to adjust your prescriptions.

[Fred]

Yes that’s right, let us be concerned with my medication and make snide remarks about my coming to play here with you. If that’s all you’ve got ''hero'', which I’m quite certain is the case, you’ll have to play with yourself.

Good day,
Fred

[My Name]

A couple of thoughts on this. I have enjoyed your perspective on the unfolding drug war. I live in Northern Mexico and have witnessed events and have met people from the whole spectrum of this society over the last couple years.

To the previous posters and their blame on Americans: people are going to use drugs and that's just reality. They always have and always will. We can debate about ethics and prohibition all day, but demand is very inelastic (people will pay lot to continue their habits). Its not Americans that got Mexico into this mess, although many people here love to blame the US for their issues.

From what I have seen, corruption and weak institutions bear the vast responsibility for current issues here. If Phoenix was not supported by a strong law enforcement community, there would be many more blatant crimes that we see all over the borderland region (on the south side at least...)

The US drug market does nothing to help the situation, but consider Canada: overrun with grow operations, and a significant organized crime presence, with almost no violence.

Social stratification: I'm a little surprised to read your comment that there aren't a lot of rich people in Mexico. The vast majority of capital here is owned by the rich, and there are a reasonable proportion of them. Its old money and descends from landowners in the past. Every city I see here has a surprisingly large development of mansions. But most people are poor, with a despicable education system, tarnished dignity, little chance at upward mobility and a continually rising cost of living.

So I feel this situation basically boil down to this:

1. Powerful groups can easily operate outside the law. Crime is far worse than most people think, we've all seen or experienced it. In places, corruption goes right to the top.

2. Millions of youth in the cycle of poverty are continually faced with the same question: (Die broke and sick at 50, or die at 25 with your head up - with a house and car for your family, with respect and dignity.)

3. Scale - $40bn a year is a LOT of money, and expenses are a fraction of it. Its a torrent of wealth flowing south. Mexico benefits massively from this capital, even if only 20% "trickles down".

Until Mexico offers long-term solutions to these two problems, this situation will continue.

[Sylvia Longmire]

@My Name - That was one of the best comments I've read in quite some time. Bravo, and don't be too scared of the folks here :). They're good people. We get on each others' nerves sometimes - especially if the topics of guns and immigration come up - but they're generally respectful and interested in learning and sharing enough to keep it clean.

[R Fung]

Frankly I find it hard to believe that anyone would be willing to invest $500k in any foreign country without an assurance that they would have a long term visa in order to monitor or supervise their investment.

Most of the countries in the world have residency visas that a foreigner can qualify for by showing that: (1) they have a retiree pension of at least $400-2000 a month (2) are willing to make a substanial business investment or (3) are a person of means, which they demonstrate by depositing at least $100k in a bank acct in the foreign country.

Certainly this type of visa preference can be abused, to the same extent that asylees may exagerate the true danger to themselves, that a fiancee may not truely be in love with her fiance or a student who has no interest in actually studying in the US.

At least all those who apply for any visa preference are required to submit an application, their identifying information is vetted against watch lists and govt databases, they are interviewed by a consular officer for a permanent visa, they submit their fingerprints and photograph and if approved, they tell the CBP Officer where they plan to live.

I'm less worried about a few thousand wealthy millionaires residing in the US than the thousands of "Jose and Marias", "Ying and Li" and "Mohamad and Haroon" you often refer to, who enter the country illegally. How is the security of the US enhanced when the govt does not know their background, does not know what they look like, where they live or even their true names.

I'm sure there are some wealthy Tunisians and Egyptians millionaires that are submitting their visa applications as you read this. It's not uncommon for wealthy foreign citizens of countries with political or economic turmoil to seek safe havens for their money and persons in Europe, asia or the US. If the US State Dept approves their applications, I personally welcome their yuans, reals, pesos or drachmas.

I've checked my depleted 401K resources and determined that I can qualify for an investor permanent visa to Laos, Uzbekistan and El Salvador!

[Fred]

My Name: Extremely nice to read such an enlightened and educated response. You have summed my point up nicely and in a manner which few should not be able to grasp. Thank you, Fred

[BILL]

@ My Name: Thank you for the informative post, rational and well thought out. And thanks for the calmative effect your post has had on the more "imaginative" residents on here!

[P]

You can hardly blame anyone from wanting to get out of Mexico right now ... who wouldn't want to escape the violence and hopelessness? The fact that only 34 Mexicans applied for an EB-5 visa last year tells that this particular issue has ZERO chance of becoming a problem, at least for now.

Before this is all over ... wealthy Americans may be leaving the USA in droves and going to places like Canada, Costa Rica, Singapore, and anywhere else that will take them. The USA has been lucky that our law enforcement agencies have stayed on top of crime as well as they have over the last decade. But as our economy continues to founder and local police are fired from their jobs - the chances of rising crime rates seem pretty good.

P.