New Book Exposes EB-5 Visa Program as Political Tool

Peter Schweitzer’s recent book, The Invisible Coup: How American Elites and Foreign Powers Use Immigration as a Weapon, delves into how a seemingly harmless initiative aimed at attracting foreign investors has morphed into a substantial operation for laundering foreign contributions to American politicians, mainly Democrats.

The narrative centers on a program created by the 1990 Immigration Act, known as the Employment-Based Fifth Preference Visa (EB-5). The official aim was to incentivize foreign investors to pour money into American businesses, thus helping with job creation.

Essentially, foreign nationals who invested at least $1.05 million (or $800,000 in economically challenged areas) and generated a minimum of 10 jobs could receive green cards and permanent residency. Those applying for this fast-tracked visa faced minimal scrutiny.

However, the reality is that the EB-5 program has become a conduit for significant levels of foreign interference in American politics, and it seems that was its intent from the outset.

Schweitzer highlights that key players involved in the EB-5 program are reminiscent of names that anyone familiar with Bill Clinton’s fundraising scandals from the 1990s would recognize. Maria Xia, a prominent Chinese-American linked to Indonesia’s Riady family and its financial conglomerate, Lippo Group, played a pivotal role. John Huang, an executive at Lippo, was also involved.

These individuals featured prominently in the 1996 Clinton-China fundraising controversy. A Senate investigation labeled Xia as an “agent of the Chinese government,” who attempted to obscure his connections while channeling money to Clinton and associates. Lippo Group utilized the EB-5 visa to undermine U.S. defenses against foreign campaign contributions.

John Huang admitted guilt in 1999 for conspiracy to violate campaign finance laws, while James Riady followed suit in 2001 for related illegal contributions during the 1996 election. Democrats ended up returning over $1 million in questionable campaign funds.

For those who witnessed the Clinton scandals firsthand, seeing these names resurface in Schweitzer’s examination of EB-5 feels almost like realizing that a notorious horror icon orchestrated a slumber party. It was undoubtedly a devious scheme, one that led to chaos.

Schweitzer points to investigators who suspect the EB-5 program was strategically crafted by Shire and the Lippo Group specifically to divert foreign money into Democratic political funds, with some contributions also reaching Republicans.

The plan was straightforward yet effective; it allowed foreign agents to funnel campaign donations to the Democratic Party, despite their inability to vote in U.S. elections.

One case Schweitzer discusses is of Danhong “Gene” Chen, who gained American permanent residency and managed a company assisting foreign investors with EB-5 visas, accruing $52 million in revenue while donating $294,300 to Democratic causes. Another $449,052 came from an unidentified individual using her law firm’s address.

Chen and her husband faced charges related to visa fraud and identity theft. While one accomplice went to prison, Chen managed to escape but was eventually apprehended in Kyrgyzstan, leaving a mystery around their unknown network of minor contributors.

EB-5 operations often assure foreign clients that they can engage with the U.S. political system as donors, emphasizing their ability to facilitate meetings with high-profile politicians, including former President Donald Trump.

Companies involved in EB-5 frequently claimed to make campaign contributions a straightforward process, sometimes framing these donations as bribes, appealing to foreign clients who view such practices as commonplace in business.

Most clients hail from China, and Schweitzer mentions there’s little reason to doubt that they may be acting under the directive of the Chinese Communist Party, which seeks to cultivate networks to sway politics in Western nations.

This led to an influx of $1,000 donations to Hillary Clinton’s 2008 presidential campaign from New York’s Chinatown, where many contributions originated from addresses that, frankly, sounded neglected and rundown.

Investigations later revealed that many Chinese donors were responding to directives from questionable “community groups,” some of which had ties to China’s United Front Work Department, a body dedicated to spreading communist ideology globally.

Schweitzer reflects on documents that suggest the Chinese government allows EB-5 recruitment agencies to operate freely in China, even with restrictions on sending more than $50,000 abroad. While the EB-5 visa’s investment requirement starkly exceeds this limit, these agencies help China influence U.S. political matters and access sensitive projects.

His book illustrates how the EB-5 visa, originally introduced under the guise of job creation over three decades ago and influenced by individuals connected with the Chinese Communist Party, has given China a formidable means of inserting untraceable contributions into American elections.

Available through HarperCollins, Schweitzer’s The Invisible Coup sheds light on a complex web of foreign and domestic interests entwined in the American political landscape.