EB-5 Risk Alert: Controversy at Dealmakers Conference Linked to American Logistics
Yesterday, clergy and community leaders visited the EB-5 Dealmakers Conference in Southern California to share their concerns about the nearby American Logistics Regional Center.
The leader of the delegation, Bishop William Todd Ervin, requested a moment to educate conference attendees about the company’s potential misuse of EB-5 capital. Although he was refused, the message communicated by the group of religious leaders and community members was loud and clear: American Logistics is a risky investment.
In the below video, Bishop Ervin shares his perspective on the day’s events. He states, “Our reason for being here today is to bring attention to the EB-5 program, which is a wonderful program, because it infuses cash into businesses that are strapped, and it’s sorely needed in this economy.” He continues, “Today we came to bring attention to a company, American Logistics, that is not holding up their end of the bargain. They’re receiving the money, but they’re not doing the right thing by the money they’re receiving.”
Bishop Ervin concluded, “I believe that our intervention, if you will, and infusion, was very intense, but also very informative. I believe a lot of the investors didn’t know about some of the illegitimate practices American Logistics is committing with the money that they’re getting from them.”
This outpouring of community concern about the business practices of American Logistics echoes recent admonishments from federal and local elected officials. This erosion of trust among stakeholders should concern EB-5 investors dependent upon the creation and maintenance of jobs at American Logistics.