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1. Has any CMB Infrastructure Investment Group Project been reviewed by AAO?
No. The AAO stands for the Administrative Appeals Office. The AAO decides the Appeals of denials of most USCIS petitions. No CMB investor petitions have been reviewed by the AAO.
2. What has been the rate of return to investors historically?
The average rate of return is approximately 1% per year. CMB investments focus on helping the investor achieve the Green Card and preserving the investor’s original capital investment to provide for return of capital upon the completion of the investments. We also strive to provide a return to the investor but the first two goals are our primary focus.
3. Can the investor redeem his or her investment following condition removal?
No. This would be a form of a redemption agreement. Redemption agreements are prohibited by the USCIS. CMB investments are structured for six years. Each loan agreement addresses the possibility of early repayment but the prospective investor should prepare for a term of six years.
4. What precautions are taken to monitor job creation?
CMB investments involve indirect job creation only and we have proven in each investment that has been reviewed by the USCIS, that indirect jobs are created at the time the monies are spent. Each individual project in an investment has a timeframe for completion. The timeframes fall within the period of time for job creation required by the USCIS. Additionally, we make periodic trips to each investment site and we get regular reports from each borrower, the reports are posted in the investor section of our website.
5. What steps are taken if the requisite job creation has not occurred?
Under the IMPLAN economic model, CMB investments need only show that the monies are spent and therefore the indirect jobs are created. As stated in Question 4 we monitor all projects and obtain documentation of completed projects.
6. Is the Regional Center affiliated with any government entity?
Yes, CMB invests directly with the government agencies charged with the reuse of the former military base areas or units of local government within our Regional Center. We have also invested with master base developers who can be private entities who have purchased the former military bases. In either case we require a government component in the investment. Our investment with McClellan Park, a private entity has a pledge of Sacramento County Mello Roos Bonds as one source of repayment.
7. When was the Regional Center approved by USCIS, and has it gone through recertification?
CMB Export, LLC originally designated by the INS in 1997 and recertified by the USCIS in 2007.
8. Does the Regional Center investment include direct job creation, indirect job creation, or both?
CMB investments create direct and indirect jobs, however we only claim the indirect jobs that result from the large investment of combined capital using IMPLAN. This is a key feature of every CMB investment.
9. How many I-526 petitions have been filed by investor in the Regional Center?
How many have been approved? How many have been denied?
As of July 18, 2011– CMB Export has received 236 successful I-526 petition approvals. We have never had an I-526 petition denied.
Group A – 10 Filed, 10 Approved
Group B – 14, Filed, 14 Approved
Group I – 40 Filed, 40 Approved
Group II – 52 Filed, 52 Approved
Group III – 42 Filed, 42 Approved
Group IV – 92 Filed, 78 Approved, 14 pending adjudication. (92 units)
Group V – 43 Filed, 1 To be Filed in final stages of preparing their petitions. (44 units)
Group VI-A - 75 Filed, 15 To be Filed in various stages of preparing their petitions. (90 units)
Group VI-B - 40 Filed, 42 To be Filed in various stages of preparing their petitions. (82 units)
Group VI-C - 98 To be Filed in various stages of preparing their petitions. (98 units)
We have nearly 600 investors with CMB Export.
10. How many I-829 condition removal approvals have the Regional Center investors received? How many denials?
Regulations require a wait of approximately two years from the issuance of a conditional visa before an applicant can submit for removal of the conditions on the visa. As of May 2011, we have I-829 approvals in our first three investment partnerships. Clients in our fourth investment become eligible to file for removal of conditions in June 2011.
11. Who are the attorneys who regularly represent the Regional Center?
Our business attorney is Pat Rodriguez of Freeman, Freeman & Smiley in Los Angeles, California. Attorney Tim Sabo and the firm of Lewis Brisbois Bisgaard & Smith LLP is also counsel to the Regional Center. CMB requires that each investor secure his or her own immigration attorney. This way the investor can rest assured that their attorney is looking out for the investor. An immigration attorney that is associated with the Regional Center has the potential for a conflict of interest.
12. Does the Regional Center's attorney contact the foreign national directly, or can the referring attorney maintain all contact with the foreign national?
Again, each investor has their own immigration attorney. We work hand in hand with your immigration attorney. CMB has worked with attorneys from all regions of the United States.
13. What is the form of the investment - limited partnership, LLC or other?
Limited Partnership.
14. What provisions are made regarding the security of the investment?
Our target investments are either government entities or private companies with a pledge of public funds as a source of repayment. In both cases they have to identify the sources of repayment and they are required to allocate funds each year towards repayment.
15. What use is made of the investor's funds? What is the type or types of projects?
CMB investments focus on infrastructure. Infrastructure is the backbone of development and future job creation. The current stimulus bill is focused on infrastructure investment as a proven method of creating jobs. CMB has focused on investments into infrastructure for years.
16. Does the investor have to make a deposit or pay any fee for the offering materials?
No.
17. What is the amount required to be paid by the investor?
$535,000.00
18. Is payment made into an escrow account? Is the investment amount refunded if the I-526 is not approved?
CMB investor funds are held in an escrow account until proof of a I-526 petition approval is provided to the financial institution. The full $535,00 (plus any accrued interest) would be refunded to the investor in the event of a denial of an investor’s I-526 Petition. Escrow funds are held in the investors name through the Trust Department of the Bank. This way the Bank never takes title to the monies in the unlikely event of a bank failure.
19. What happens if my I-526 petition is approved by the USCIS and later denied at the Consulate interview?
The United States government does not allow for what are called redemption agreements. By this they prohibit any Regional Center from making a guarantee that the investor's funds will be returned immediately upon the denial at the interview or medical screening after an I-526 approval. What they do allow for, and we include in every partnership agreement, is what is called a replacement investor. What we are allowed to do in the event of a denial is replace that person with the the next person that would enter the partnership. This method is acceptable to the USCIS and we have language in our partnership agreement that addresses this very situation. The important thing to remember here is that any denial at this point would be a denial of the individual and not the investment. The investment is reviewed and approved at the I-526. Finding a replacement investor in an already approved project should prove to be very simple.
20. Does the Regional Center provide regular reporting of the status of the investment to the investors, and at what intervals?
Yes, quarterly reports are posted for each investor in the secure portion of our website. Additionally, each investor has individual access to reports detailing their capital accounts and the balance sheet of the partnership.
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