A recent book by investigative journalist Peter Schweizer, The Invisible Coup: How American Elites and Foreign Powers Use Immigration as a Weapon, has brought renewed attention to the long‑standing Employment‑Based Fifth Preference (EB‑5) visa program and its place in American political and economic history. Schweizer’s work argues that the visa program—originally designed to encourage foreign investment and job creation in the United States—may have later been exploited in ways that intersected with political fundraising activities in the 1990s.
The book has sparked discussion about immigration policy, political finance laws, and national security concerns. While some of the claims relate to broader historical controversies, understanding the full story requires a careful look at the legal framework of the EB‑5 program, how it has been used in business and investment contexts, and what is publicly known about political fundraising controversies from decades past.
This article provides a comprehensive overview of these topics while remaining rooted in documented facts and public records.
What Is the EB‑5 Visa Program?
The Employment‑Based Fifth Preference, or EB‑5, is a U.S. immigration category created by Congress in 1990 with the goal of stimulating the American economy through foreign investment. Under the program, foreign nationals may become eligible for lawful permanent residency—commonly referred to as a green card—if they make a significant investment in a U.S. enterprise that creates or preserves at least ten full‑time jobs for U.S. workers.
Specifically:
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Investors must commit at least $1.05 million, or $800,000 if the funds go into a targeted employment area (TEA) that has high unemployment or is rural.
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The investment must lead to the creation or preservation of jobs for American workers.
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If these requirements are met and verified, investors and eligible family members can receive lawful permanent residency.
The program was initially viewed on both sides of the political aisle as a tool for economic development, particularly after the 2008–2009 recession, when attracting foreign capital became part of broader economic recovery efforts.
Historical Use and Criticisms of the EB‑5 Program
Over the years, the EB‑5 program has attracted investment from around the world, especially from countries with significant numbers of high‑net‑worth individuals seeking permanent residency in the United States. At times, EB‑5 has been credited with supporting development projects in underserved regions.
However, the program has also faced ongoing criticism, including:
1. Fraud and Integrity Concerns
Government agencies and oversight bodies have documented cases in which fraud, misrepresentation, or misuse of EB‑5 funds occurred. A 2015 Government Accountability Office (GAO) report described challenges in verifying whether investment funds were legally obtained and whether required jobs were created.
A 2016 Senate Judiciary Committee release noted that more than 100 investors—including individuals of concern to national security—had obtained visas through a single EB‑5 project that neverMaterialized. Leaders from the FBI and Department of Homeland Security (DHS) raised concerns about these findings.
2. National Security and Vetting Issues
In recent years, investigations by DHS and others found instances in which individuals with suspicious backgrounds used the program with fake or misleading documentation. These developments prompted increased scrutiny from lawmakers on both sides of the aisle.
3. Distribution of EB‑5 Visas
Data from past years show that a large portion of EB‑5 visas were issued to applicants from mainland China, leading critics to argue that the program had become dominated by investors from a single country rather than broadly distributed internationally.
In response to these and other concerns, policymakers have periodically debated reforms, including stricter vetting, revised job‑creation requirements, and enhanced oversight of “regional centers” that bundle investments from multiple foreign investors.
Political Fundraising Controversies in the 1990s
The claims raised in The Invisible Coup intersect with a period of U.S. political history marked by significant scrutiny of campaign finance practices in the mid‑1990s. One well‑documented episode involved federal investigations into fundraising activities surrounding the 1996 U.S. federal election.
Key Figures in the 1996 Controversies
Several individuals became focal points of investigations during this period, including:
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John Huang, a former Commerce Department official who later became a fundraiser for the Democratic National Committee (DNC). He eventually pleaded guilty in 1999 to conspiracy charges related to campaign finance violations involving improper contributions.
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James Riady, a businessman whose Lippo Group and related associates were tied to contributions that were refunded by the DNC amid legal and ethical scrutiny.
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Maria Hsia, an immigration consultant with fundraising ties who was convicted in 2000 of illegal political contributions.
Senate and House investigations during that period documented instances in which foreign nationals or non‑eligible donors were involved in contributions, prompting refunds and legal action.
It is important to note that federal law prohibits foreign nationals who are not lawful permanent residents from contributing to U.S. political campaigns. These investigations focused on verifying compliance with those laws.
How EB‑5 Funding and Immigration Intersected With Politics
While the original intent of the EB‑5 visa was economic development, later commentators—most recently Schweizer and others—have suggested that the program’s accessibility made it attractive to foreign investors who sought not only residency but also social and political engagement once in the United States.
According to Schweizer’s book, the EB‑5 system was used by some foreign investors to gain permanent resident status, thereby enabling them to donate to political campaigns once they became eligible. Foreign nationals are expressly prohibited from contributing to U.S. campaigns unless they have lawful permanent residency status.
Schweizer’s narrative highlights figures such as Danhong “Jean” Chen, a Chinese citizen and EB‑5 facilitator whose business allegedly directed hundreds of thousands of dollars to U.S. political campaigns after investors gained residency. Authorities later brought charges against Chen and associates for visa fraud and identity theft related to how the program was used.
Distinguishing Historical Fact From Interpretation
It should be emphasized that not all claims made in commentary or published works have equivalent levels of verification. For example:
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Official congressional investigations from the 1990s focused on individual fundraising violations and illegal contributions. These investigations resulted in convictions and refunds of certain donations.
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The EB‑5 visa itself is a legally established immigration program administered by the U.S. Citizenship and Immigration Services (USCIS). Its primary purpose is economic development through job creation.
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The connection between EB‑5 and political fundraising is not a formal finding of any government agency; rather, it is part of Schweizer’s investigative narrative and broader political commentary.Readers should consider multiple information sources and official records when forming conclusions about historical or political claims.
Reform Efforts and Ongoing Debates
Over the decades, lawmakers and policymakers from both parties have engaged in debates about how best to balance economic benefits, national security, and ethical considerations in the EB‑5 program.
Proposed Reforms
Reform proposals have included:
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Enhanced oversight and reporting requirements for regional centers
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Stronger vetting of foreign capital sources
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Clearer documentation of job creation outcomes
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Audits and compliance checks to reduce fraud
Some legislative efforts have aimed to introduce more rigorous background checks and integrity measures to ensure that the program’s benefits align with public interests.
Bipartisan Views
While concerns about fraud and national security have been raised by lawmakers across the political spectrum, the program’s potential to drive economic investment in underserved areas has also attracted support.
The debate highlights a broader challenge: designing immigration policies that encourage investment and growth while preventing misuse and protecting the integrity of democratic systems.
The Broader Context of Immigration and Political Finance
The discussion around EB‑5 touches on important themes in contemporary public policy:
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Economic development vs. program integrity
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Campaign finance laws and political transparency
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Immigration policy and national security concerns
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Historical interpretation vs. documented fact
Understanding these issues requires careful consideration of legal frameworks, historical investigations, and diverse viewpoints from policymakers, legal experts, and researchers.
Conclusion
The EB‑5 visa program remains an important, yet sometimes controversial, component of U.S. immigration policy. Designed to encourage foreign investment and job creation, it has been both praised for its economic contributions and critiqued for oversight challenges and potential misuse.
Books such as The Invisible Coup bring fresh perspectives and provoke public discussion, but readers and citizens benefit from grounding those discussions in official records, legislative history, and balanced analysis.
Looking at the historical record, including both immigration policy and political finance investigations from the 1990s, provides useful context. The EB‑5 program continues to evolve, influenced by economic needs, legislative action, and ongoing debates about how best to safeguard democratic processes.