EB-5 Investment Fraud Red Flag #2, Commission Breath

[Also available on LinkedIn.]

“Commission breath” is a slang expression used in the sales industry to describe a salesperson that reeks of desperation and will say or do anything to close a deal. Many times this is expressed in slick tactics such as creating a false sense of urgency. For instance, a salesperson may attempt to convince you that other smart investors are piling in, don’t miss out!¬†Unscrupulous sales tactics are frequently a sign that you are dealing with unethical people. The best analysis of the most commonly used manipulative techniques is described in the classic book, Persuasion, by Dr. Robert Cialdini. His website is linked below, I highly recommend reading the book.

If any developers, intermediaries, attorneys or placement agents are leaning on you for money in an uncomfortable way, slow things down. Do your due diligence and satisfy yourself at your pace, not theirs. If you’ve already committed money and have doubts as to whether you were dealt with honestly, it may be worth it to vet your case with an attorney experienced in handling fraud cases. Even if a fraud has taken place, sometimes a good result can still be salvaged.