Understanding Trump's Gold Card Initiative for High Net Worth Investors

Reinhard von Hennigs explains President Trump's proposal to replace the EB 5 program with a new 'gold card' initiative aimed at high-net-worth individuals. The "Gold Card", requiring a $5 million investment, seeks to streamline the U.S. residency process for investors and excludes foreign income from U.S. taxation, unlike the current green card system. This initiative aligns with investment programs in countries like Singapore and New Zealand, intended to boost the local economy. However, the "Gold Card's" implementation would require congressional approval due to significant changes in immigration and tax laws, potentially leading to legal challenges.

The Bureau of Economic Analysis and Its Forms

The Bureau of Economic Analysis (BEA) is the United States Department of Commerce federal agency. The BEA produces economic statistics regarding US GDP, foreign trade and investment, and other industry data. Specifically for foreign business, the BEA collects its data by having corporations file several mandatory forms for various purposes. These forms are collected to measure the amount of new and current foreign direct investment in the US, which can then inform the US government on its economic policy decisions. Some of these forms include the BE-13, BE-15, and BE-12. 

If a corporation has more than 10% foreign ownership, it must file a Form BE-13 within 45 days of its formation. However, if it costs less than $3 million to create or acquire the new corporation, then the corporation files a BE-13 Exemption Form. 

BE-15 Forms are mandatory annual reports of a corporation’s financial statements. These forms are based on total assets, gross operating revenues, and net income. Corporations reporting greater than $300 million on any of these metrics file Form BE-15A, between $120-300 million file Form BE-15B, between $40-120 million file Form BE-15C, and if a corporation reports revenues less than $40 million it files a BE-15 Exemption Form. 

Finally, the BE-12 Form is the most comprehensive financial and operating data survey for foreign-affiliated corporations and must be filed every five years. Like the BE-15, BE-12 forms are split based on income range, with BE-12A for revenues greater than $300 million, BE-12B for between $60-300 million, and BE-12C for revenues under $60 million.

These forms are mandatory for corporations and are essential for the BEA to have the most accurate understanding of foreign investment in the US. Because of their significance, an experienced international accounting firm will likely file these forms as part of their routine services.

Lucas Tappa, Law Clerk, BridgehouseLaw Charlotte

2023 Select USA Investment Summit

 

We are happy to announce that Reinhard von Hennigs will be a featured speaker at the 2023 #SelectUSASummit! Learn more about the top FDI event in the USA: http://www.selectusasummit.us

Thank you for the edit, Colin Vebra and Judgement War Productions LLC

The Class Action Lawsuit Against Robinhood

 

The Class Action Lawsuit Against Robinhood after they Restricted GameStop’s Stock

Did you buy any GameStop stocks? Even if you didn’t, you’ve probably heard about this “war” between day traders and hedge funds that’s been getting lots of mainstream attention over the past week or so. With everything going on, it can be very confusing to people, especially those who don’t know too much about stock trading. Because of that, we wanted to break down the situation and find out why Robinhood, an investing app that was beloved just a week ago, now is hated by a large group of their customers and has a class action lawsuit being filed against them.

Background

The pandemic has changed the ways that many of us live our lives. We have stopped relying on brick-and-mortar stores and instead have begun to rely on online shopping to take its place. Many retail stores were deeply affected by this, including the video game retail store; GameStop, which announced that they were expecting to close around 450 stores in 2021.

Since GameStop is a publicly-traded company, news of their decline was exciting for hedge funds who thought they could make money from shorting their stock. This is where people get confused because short selling is a confusing topic. All you need to know is that the hedge funds started to bet that the stock would go down, and if it did, then they would lose money. If you would like to read more about short selling, click here.

Reddit to the Rescue

Reddit users in a subreddit called “r/wallstreetbets” decided to fight back against the massive hedge funds by using their Robinhood accounts to buy GameStop stock and encourage others to do so as well. This caused the stock price to rise rapidly, and the more that the price rose, the more the hedge funds lost money. This caused many hedge funds to buy the stock back, which in return made the price go up even more. Some hedge funds tried to hold on to the stock, hoping that the price would go down, only to find the price continuing to go up. This is called a Short Squeeze.

Around this time last year, GameStop stocks cost $4 per share, now they are over $300 per share and reached over $450 per share on Thursday, January 28th. This group of over 6 million users has also begun to target other shorted stocks such as AMC Entertainment, Bed Bath and Beyond, Nokia, and BlackBerry. Hedge funds have lost billions to short-sellers just this month.

Class Action Lawsuit Filed Against Robinhood

On Thursday, January 28th, Robinhood froze the buying of particular stocks, including GameStop, AMC, and more. This caused outrage from many users, who claim that what Robinhood is doing is market manipulation by illegally regulating the stock market. By restricting buying of the stock, the price cannot go up, which protects the hedge funds from more losses. This outrage led to a class action lawsuit being filed against Robinhood. The lawsuit states that “Robinhood’s actions were done purposefully and knowingly to manipulate the market for the benefit of people and financial institutions who were not Robinhood’s customers.”

A class action lawsuit isn’t the only problem that Robinhood must worry about. The SEC has pledged to investigate and punish any abusive activity that they find from brokerage firms like Robinhood. It has also caused outrage from both the political left and right when politicians such as Representative Alexandria Ocasio-Cortez and Senator Ted Cruz took to Twitter to comment on their outrage towards Robinhood.

Robinhood has since started to reopen trading of the restricted stocks, but outrage has not settled, and the SEC investigation and the class action lawsuit are still expected to go on as planned. There are still restrictions on how many shares you can buy of companies like GameStop and AMC, but despite that, Robinhood has been forced to raise $2.4 billion to meet investment demands.

Follow along with our blog to get future updates on this situation.

Haribo to build its first U.S. manufacturing facility

This is great news for all those with a sweet tooth and a predilection for delicious gummi bears, and even more so for the county of Kenosha, Wisconsin.
After an extensive search and a detailed selection process, the German-based confectionary company has decided to build its first U.S. manufacturing facility near the city of Kenosha, approximately 45 miles north of Chicago. The $242 million facility which is planned to be one of the largest in the U.S. confectionary industry represents also one of the largest investments of new operations by an overseas company in Wisconsin history. The plant is scheduled to be operational by 2020 and will eventually create jobs for 400 employees.

Manvel Vasilyev will attend the First Belarusian-American Investment Forum

BridgehouseLaw Charlotte is pleased to announce that our partner, Manvel Vasilyev, will attend the upcoming investment forum. Manvel Vasilyev looks forward to discussing investment opportunities with Prime-Minister of Belarus, Mr. Mikhail Myasnikovich, and Minister of Economy of Belarus, Mr. Nikolai Snopkov, during the First Belarusian-American Investment Forum on September 22^nd.

Belarusian delegation also includes Ms. Natalia Nikandrova, Director of the National Agency of Investment and Privatization, deputies from the Ministry of Foreign Affairs, Ministry of Finance, National Bank Board, and Chamber of Trade and Commerce.

Mr. Nikolai Snopkov, Minister of Economy of Belarus, will deliver keynote presentation on the future of economic cooperation between Belarus and the United States. Ms. Natalia Nikandrova, Director of the National Agency of Investment and Privatization, will discuss the current investment climate in Belarus.

The importance and timing of the First Belarusian-American Investment Forum cannot be understated. We are certain that the First Investment forum will have positive impact on Belarusian-American economic relations.

Milliadärsfamilie Reimann kauft Starbucks Konkurrenten Peet’s Coffee

Die deutsche Milliardärsfamilie Reimann kauft die bekannte amerikanische Kaffeekette Peet’s Cofffee & Tea für eine Milliarde Dollar. Beide Seiten bestätigten bereits den Kauf. In drei Monaten soll der Kauf abgeschlossen sein.

Peet’s Coffee & Tea gilt als größter Konkurrent von Starbucks. Der Starbucks Rivale hat 1966 sein erstes Geschäft in Kalifornien eröffnet. Bekanntgeworden ist Peet’s Coffee & Tea durch seine starken Röstungen nach europäischem Geschmack. Das Unternehmen hat in sechs US-Bundesstaaten Filialen. Die meisten davon sind an der Westküste.

Peet’s Coffee belieferte einst Starbucks mit seinen Bohnen und gehörte für kurze Zeit sogar zum Konzern.

Der neue Eigentümer der Kaffeekette, der Reimann-Clan hat sein Milliardenimperium durch den Konsumgüterkonzern Reckitt-Benckiser aufgebaut. Familie Reimann ist eine der reichsten Familien in Deutschland. Neben Konsumgütern vertreiben sie auch Luxusgüter. So wollte der Reimann-Clan vor kurzem die Kosmetikfirma Avon übernehmen. Diese Übernahme scheiterte jedoch, da sich das Managment von Avon querstellte. Damit ist der Kauf von Peet’s Coffee bereits der zweite Übernahmeversuch der Familie Reimann in den USA.

(c) Picture:  freeditigalphotos.net

Das EB-5 Visum gewinnt Bedeutung

Das EB-5 Visum des Department of Homeland Security der USA erfreut sich neuerdings wieder größerer Beliebtheit. Das Visum, das 1990 vom Kongress entwickelt worden war um die Wirtschaft anzukurbeln, hat mit dem Absturz der US-amerikanischen Banken eine neue Bedeutung erlangt.

Das EB-5 Visum für ausländische Investoren ist ein US-Visum, das unter dem Immigration Act von 1990 entwickelt worden ist. Das Visum gibt Ausländern die Möglichkeit, eine auf zwei Jahre befristete Green Card zu erhalten, wenn sie darlegen, das sie in den USA $1 Mio. (oder $500.000 in einer strukturschwachen Region) investieren werden und mindestens 10 Arbeitsplätze schaffen werden. Werden beide Kriterien erfüllt, entfällt die Befristung der Green Card.

Wichtig ist dabei, dass es sich bei der Investition um ein profitorientiertes Handelsunternehmen handelt, das entweder von einem Kaufmann, einer Partnerschaft, Holding, Treuhand oder Corporation getragen wird, oder das als Joint Venture konzipiert ist.

Die Investition kann in ein Start-up Unternehmen oder in ein bereits bestehendes Unternehmen erfolgen. Alternativ kann die Investitionssumme an ein „Regional Center“ ausgezahlt werden, dass die Verantwortung dafür übernimmt, das die Investition gelingt und Arbeitsplätze geschaffen werden, (sog. Pilot Program).

Trotz dieser vielfältigen Gestaltungsmöglichkeiten, stellte das EB-5 Visum nie einen grossen Anreiz für Investoren dar. Mit dem Abwärtstrend „klassischer“ Investments, wie Real Estate, leben Programme wie das EB-5 Visum wieder auf, denn sie bieten die Möglichkeit als ausländischer Investor in US-amerikanische Unternehmen zu investieren und durch die „Regional Center“, die hier als Vermittler tätig werden, kleinere Unternehmen oder Start-ups zu finanzieren.

Bis jetzt hat das EB-5 Visum zur Schaffung von 65.000 Arbeitsplätzen beigetragen und es wurden insgesamt $3.1 Milliarden in den USA investiert. Das ist auf die 20 Jahre seiner Existenz gesehen sehr wenig. Seit ein paar Jahren jedoch steigt das Interesse an dem Visum. Vor allem chinesische Investoren und Investoren aus der Branche der gewerblichen Immobilien nutzen das Visum, als Einstiegsmöglichkeit.

Abzuwarten bleibt jedoch wie sich das Programm, dass die Zusammenarbeit mit den Regional Centers ermöglicht, entwickelt. Es lauft im September diesen Jahres aus.

(c) Picture:  freedigitalphotos.net

New Visas for Foreigners Buying Pricy Homes

To stimulate the US-real estate market, two Senators (Democrat Charles Schumer, New York and Republican Mike Lee, Utah) are preparing to introduce a new bill this Thursday that would give residence visas to foreigners who wants to buy a house in the United States.

The measure will offer visas to any foreigner making a cash investment of at least $500,000 on residential single-family houses, condos or townhouses. Applicants can spend the entire amount on one house or spend as little as $250,000 on a residence and invest the rest in other residential real estate, which can be rented out.

The goal of this measure is to get more wealthy people to the United States spending their money there to stimulate American businesses. The measure will complement existing visa programs that allow foreigners to enter the United States if they invest in new businesses that create jobs. Advantage of this measure shall be that "this is a way to create more demand without costing the federal government a nickel," Senator Schumer said in an interview.

Foreigners immigrating to the US with the new visa would not be able to work here unless they obtained a regular work visa through the normal process. Otherwise, they will be allowed to bring a spouse and any children under the age of 18. Once they sold their properties they would not be able to stay in the country legally with the new visa.

The provision would create visas that are separate from current programs so as to not displace anyone waiting for other visas. Expected applicants are supposed to come from Canada, China, Mexico, Great Britain and India.

For all Immigration related inquiries please email us at charlotte@bridgehouselaw.us or give us a call at 704.333.5230.

Picture (c): freedigitalphotos.net

How to get an EB-5 visa for the United States

If you want to apply for an EB-5 visa you have to fulfill three basic requirements:

• Establishment of a business in the US

The establishment of a business in the US can either be the establishment of a new business or investing in an established business for expending this business. For investing in an established business it is required that this business was established after November 1, 1990.

• Investment of at least $1 million in the businessThe investment can be made in a number of forms like cash, equipment, inventory and other property. In some cases an investment of $ 500,000 is enough to fulfill the requirements, if the business is established in a so-called “targeted employment area”, which means a rural area with an unemployment rate of more than 150 % of the average unemployment rate. A list of the targeted area can be requested at the Department of Labor of the particular state.

• Creation of full-time employment for at least 10 US workers

Please note that relatives and part time employees are not taken into consideration for the calculation of the full time jobs your business provides. A full-time job requires at least 35 hours per week. Even if two part time jobs will make 35 hours together, part time jobs are excluded from the calculation.

Besides these requirements the following documents have to be forwarded:

• A copy of your updated resume
• A short description of the business you want to establish in the US
• The estimated investment
• A short description of your business in your home country

  With the EB-5 visa you will receive a green card, which is valid for 2 years. Additionally your relatives (your spouse, children and step children under 21 years) will receive a green card as well. With the green card you have the same benefits as every other US resident. The green card has to be extended after 2 years. After 5 years you can apply for the US-citizenship.

"Show me the money"

California Attorney General, Edmund "Jerry" Brown, Jr., announced today that he has secured a settlement in which Wells Fargo will pay investors, charities and small businesses $1.4 billion over the purchase of auction rate securities from Wells subsidiaries based on "misleading advice."

More details about this will be posted here and later at bdhlaw.net.