In my view, the most overlooked tool in EB-5 disagreements is the books and records demand. This tactic is versatile and can be helpful in various circumstances. It’s particularly beneficial when there’s a conflict over money refunds or when the Regional Center is not cooperative in responding to a Request For Evidence (RFE) or a Notice of Intent to Deny (NOID).

Let’s say you’re having a disagreement about getting your investment back. If you suspect that your project is poorly managed or potentially fraudulent, you might want to ask for access to the company’s books and records. Doing so could compel the management to provide documents that may help determine the value of your investment or support an investigation into possible illegal activity. The specific details about your right and ability to make such a request are typically laid out in the operating agreement or the laws of the state where your project is located.

In cases where you need assistance responding to an RFE or NOID, you can request to examine the books and records of the relevant organizations. Depending on the agreement you signed and the applicable state laws, this request could help you get the necessary documentation. If the organizations refuse your request, you might need to take them to court to force them to comply. In some states, the court might require these organizations to cover your legal fees, which can help convince them to provide the documents you need. This process can also reveal useful information if you need to file lawsuits or arbitrations for financial compensation later on.

When prepared properly, these requests for access to books and records can nip a problem in the bud or be a valuable resource in potential future legal proceedings.