What liabilities can result from translating EB-5 offering documents?

Generally, a regional center''s documentation should provide a disclaimer that translation is for convenience purposes only and that the English version of the documents is the only binding set of documents. It is generally a marketing technique to attract more investors by translating the offering documents into an EB-5 investor''s own language, but is not a requirement.

The regional center and/or EB-5 project should take control over and be responsible for translating the documents. The main reason is that an accurate translation gives clarity and transparency to the translated documents for the benefit of the investor and therefore misrepresentations are avoided.

It is a matter of marketing; an investor will find it easier to review the center and projects in their own language without having to ask someone to translate. Any translations should have a disclaimer attached.

Translation between languages always risk mistakes. A translated version of EB-5 offering documents could contain errors that is either inaccurate or appears to be misleading. Without proper disclaimer, it could certainly hurt the regional center or EB-5 project operators. For example, if a dispute arises over an offering document that has been translated and was relied upon by the investor, and the investor is not warned on possible errors in the translation, then the investor could sue and prevail if the translation is more favorable to the investor.

When issuing EB-5 offering documents, you take on all of the same SEC and Immigration responsibilities. If you decide to translate the documents (some regional centers translate for some countries and some do not), you would be responsible for the documents and would have to be sure that the translations are accurate. Also, if the foreign language documents are the ones that are signed, USCIS is going to need translations (which you would have) but adds another layer of documentation (doubles the documentation submitted).

Generally your offering documents will provide that the English documents are controlling. Most investors will want to review the offering documents in their native language. This is something you should discuss in detail with your counsel.

Many regional centers translate their documents. You may translate and put a disclaimer that the translation is for their convenience and not binding and you assume no liability. Further, if there is any discrepancy between the English version and translated version, the English version holds.

Some regional center''s provide translated documents in order to control the translated meaning, but others leave responsibility to the investor. It depends on your level of comfort.