Edwin Shaw LLC, a New York based company, has been charged by the Securities and Exchange Commission with illegally brokering dozens of investments by foreign nationals seeking legal residency through the federal government’s EB-5 Immigrant Investor Program.
The case below provides a good example of the need for investors to research the companies and brokers through which they are investing. Registration requirements of a broker are crucial to investor protection.
SEC Charges Unregistered Broker for Illegally Brokering Sales of EB-5 Securities
Washington D.C., March 5, 2018 —
The Securities and Exchange Commission today charged a New York-based company with illegally brokering dozens of investments by foreign nationals seeking U.S. residency.
Between April 2014 and March 2017, Edwin Shaw LLC solicited foreign nationals to invest in securities issued by a taxi and limousine company based in Queens, New York. The investments were marketed to investors interested in applying for legal residency through the federal government’s EB-5 Immigrant Investor Program, which provides a path to legal residency for foreigners who invest directly in a U.S. business or private “regional centers” that promote economic development in specific areas and industries.
According to the SEC’s order, Edwin Shaw was not registered with the SEC as a broker or dealer when it engaged in the solicitations and otherwise effectuated these securities transactions, thereby violating Section 15(a) of the Securities Exchange Act of 1934. For each successful investment, Edwin Shaw received a fee ranging from $5,000 to $50,000. Read the full article here.
If you have questions about investment fraud, financial schemes, broker misconduct, or about your broker’s management of your account, please contact our Securities Law Firm at: 313-334-7767 for a Free case evaluation. We are located in Detroit and service clients throughout Michigan and beyond!