Susan Berfield of Businessweek recently reported on the Mamtek EB-5 project. As detailed in our earlier post, the Mamtek project was one that unfortunately never came to fruition. There were plans to build a large scale factory to produce a sugar substitute, known as Sweet-O. At first it was just delays, but then the plan eventually unraveled as people looked deeper and realized that the head of the company had no idea how to create a large scale manufacturing plant.
For example, the engineer he hired Lindsay Leveen, had the following to say about the disorganization of the company: “Three or four weeks in, I was like, ‘Oh, my God.’ No one had any experience running a company. There was no plan, no construction budget, no operating budget, no estimates, no forecasts. Nothing. It was so chaotic.”
Hopefully, this one unfortunate EB-5 project will not spoil the whole program. The EB-5 program has allowed many people to successfully immigrate to the U.S. while creating thousands of badly needed jobs. It is important for individuals interested in the EB-5 program to do their due diligence and hire an experienced EB-5 lawyer.