Would-Be Advisers Bank on Visas for Foreign Millionaires

Last year, when Congress created a special class of visas for “millionaire immigrants,” the idea was to boost the nation’s beleaguered economy by attracting billions of dollars in foreign investment and creating thousands of jobs for Americans.

As happens so often in Washington, however, while it is far from clear how many new jobs will be created for ordinary Americans, scores of high-priced attorneys, consultants and money managers have little doubt it will be a bonanza for them.

The world of immigration law, concerned as it is primarily with the efforts of people from less affluent nations to enter the United States, has traditionally ranked among the less glamorous branches of the legal profession. But the prospect that the new class of “millionaire immigrants” will pay fat fees for help in obtaining their special visas and investing their millions has given the field new allure.

“Believe me,” said Jenifer Eisen, a policy assistant with the American Immigration Lawyers Assn. in Washington, D.C., “a lot of people have thought of this as a mini-gold mine.”

BACKGROUND: The 1990 Immigration Act authorized the government to issue up to 10,000 “investor visas” for those with the requisite $1 million in capital. The Bush Administration, which is drafting regulations to implement the law, proposes that the visas be made available on a first-come, first-served basis to immigrants who pledge to invest at least $1 million in a new or expanded business that creates at least 10 new jobs for Americans.

Government officials and private immigration experts say they have no idea how many foreign millionaires will queue up to take advantage of the new law. Many expect the demand to exceed the 10,000 slots available. Hong Kong natives, worried about Beijing’s impending takeover of the British colony, are expected to be among the first in line.

The law goes into effect Oct. 1. The implementing regulations are now under review by the Justice Department and the White House Office of Management and Budget, though some on Capitol Hill have expressed reservations about some of the specifics.

OUTLOOK: The would-be advisers, who are setting up international operations to offer their services and to disseminate information, say they are responding to global marketplace demands. Some are literally plugging in fax machines and hanging out shingles to attract what they hope will be a new category of clients.

Paul Donnelly is one such person. He’s president of Investment Immigration Consulting Co., a Maryland-based firm that is peddling information to potential newcomers or their sponsors already in this country. His company was founded last month “to provide investor immigrants with the specific kinds of detailed information they need to decide where and in what to invest,” Donnelly wrote in a news release.

While he has signed no deals because neither he nor anyone else knows exactly how the rules will turn out, Donnelly and others are optimistic. “At this point, it’s just starting to open up,” he said. “All around the world, a lot of contacts are being made. We’re looking at an industry worth billions of dollars however you measure it as a potential market.”

But not everyone believes the immigrant investor program is going to lead to riches for all involved. Among the skeptics is Rick Swartz, an immigration policy expert and the former director of the National Immigration, Refugee and Citizenship Forum.

“We’re not the only country with these kind of programs,” he said, citing Canada, Australia and New Zealand as competitors for business-minded immigrants.

Swartz says unsettled conditions associated with U.S. immigration policy also may discourage wealthy immigrants.

“The big, big money doesn’t need this program,” Swartz declared. “For the professionals--doctors, small businessmen and others who might have saved up a million dollars--this becomes a big, big lifestyle decision. They may decide it’s not worth the hassles.”