Can EB-5 Investors Face Denaturalization of US Citizenship? Understanding the Risks and Protections

For immigrant investors who have achieved U.S. citizenship through the EB-5 program, the idea of losing that status may seem unthinkable. However, the topic of denaturalization US citizenship is an important legal and policy issue that every EB-5 investor should understand. While denaturalization is rare, it can occur under specific circumstances—and EB-5 investors are not entirely immune.

In this comprehensive guide, we will explore the legal grounds for denaturalization, how they apply (or don't) to EB-5 investors, and what protections are available to safeguard one’s citizenship status.

What is Denaturalization and When Does It Occur?

Denaturalization is the legal process by which the U.S. government revokes a person's naturalized citizenship. This is different from deportation or visa revocation. Denaturalization applies only to individuals who became citizens through naturalization rather than birth.

The most common legal grounds for denaturalization include:

• Concealment of material facts or willful misrepresentation during the naturalization process

• Membership in subversive organizations within five years of naturalization

• Military desertion

• Criminal convictions that show a lack of attachment to the U.S. Constitution or good moral character at the time of naturalization

For EB-5 investors, the most relevant ground is willful misrepresentation or fraud during the immigration process.

EB-5 Program Overview and Naturalization Path

The EB-5 Immigrant Investor Program offers foreign nationals the opportunity to obtain a US green card by investment. By investing $800,000 to $1.05 million in a qualifying U.S. commercial enterprise and creating or preserving at least 10 full-time jobs for U.S. workers, investors can gain conditional permanent residency. After meeting the program’s requirements and living in the U.S. for the necessary period, investors may become eligible for naturalization.

Most EB-5 investors gain their green card through EB-5 regional centers, which allow for indirect job creation and pooled investments into larger projects. Direct investment is another pathway but requires more hands-on management and direct job creation.

Naturalization typically occurs five years after receiving permanent residency, provided the applicant has maintained continuous residence, good moral character, and fulfilled other USCIS criteria.

Can EB-5 Investors Be Denaturalized?

In theory, yes—if an EB-5 investor committed fraud or willfully misrepresented facts during the immigration process, they could face denaturalization US citizenship proceedings. However, successful cases of denaturalization involving EB-5 investors are extremely rare.

The U.S. Department of Justice (DOJ) must meet a high burden of proof to denaturalize someone. The government must demonstrate with clear, convincing, and unequivocal evidence that the person was ineligible for naturalization from the beginning.

Cases involving EB-5 investors typically arise from:

• Submitting fraudulent source-of-funds documentation

• Falsifying job creation numbers

• Misrepresenting the investment timeline or business structure

Protections in Place for EB-5 Investors

EB-5 investors have several layers of protection against denaturalization:

1. Thorough USCIS Vetting

The U.S. Citizenship and Immigration Services (USCIS) conducts extensive and multi-stage reviews of EB-5 petitions. This begins with the I-526E petition, which outlines the investor’s capital contribution and the business plan's potential to meet job creation requirements. Later, the I-829 petition serves as a final check to confirm that the investment remained at risk and the required jobs were actually created or sustained.

USCIS meticulously examines the source and path of funds to ensure the capital was obtained lawfully and transferred transparently. They also verify the legitimacy of the business entity, the regional center’s role (if applicable), and the economic modeling used to project job creation.

2. Legal Representation

Retaining professional legal counsel and a knowledgeable EB-5 investment advisor is another vital layer of protection. These advisors help investors navigate the complex EB-5 process, ensuring all paperwork, financial documentation, and legal declarations are accurate and complete.

Experienced attorneys specialize in immigration compliance, guiding investors through the nuances of EB-5 rules, from filing petitions to maintaining residency status and eventually applying for naturalization. An EB-5 advisor complements this by assessing risk, identifying suitable projects, and ensuring that the investment adheres to SEC guidelines.

3. SEC and FINRA Oversight

Many EB-5 regional centers operate in coordination with SEC-registered broker-dealers and FINRA-supervised entities. This introduces another layer of oversight related to financial compliance, transparency, and fraud prevention.

Broker-dealers involved in EB-5 projects must follow strict rules regarding investor disclosures, due diligence, risk assessments, and anti-money laundering (AML) practices. These rules are in place to protect investors from fraudulent schemes and to uphold the integrity of the program.

4. Judicial Oversight of Denaturalization Cases

Unlike visa revocation or green card denials, denaturalization is not a simple administrative action. It requires a formal lawsuit filed by the U.S. Department of Justice in federal court. This means the government must provide compelling, well-documented evidence that the individual obtained citizenship fraudulently or was never eligible in the first place.

EB-5 investors accused of fraud or misrepresentation are entitled to full due process, including access to legal counsel, the ability to cross-examine witnesses, present evidence, and appeal unfavorable decisions. Courts tend to handle these cases with significant care, especially when the allegations concern conduct from years earlier in the immigration process.

Examples of Denaturalization in Other Contexts

While EB-5-related denaturalization cases are rare, there have been high-profile denaturalization cases in other immigration contexts:

• War criminals who hid their involvement in atrocities

• Individuals who failed to disclose criminal convictions or immigration fraud

• People who obtained citizenship under false identities

These cases underscore the seriousness of willful misrepresentation during the immigration process but also highlight how different they are from the standard EB-5 investor profile.

Preventive Steps for EB-5 Investors

To avoid even the remotest risk of denaturalization US citizenship, EB-5 investors should:

• Work with a licensed EB5 investment advisor from the start

• Use only transparent and well-documented funds

• Choose EB-5 projects backed by reputable EB-5 regional centers

• Retain a qualified immigration attorney to review every filing

• Maintain full compliance during conditional and permanent residency periods

Reacquisition of Citizenship After Denaturalization

Although rare, individuals who are denaturalized may seek legal remedies or attempt to regain lawful status in the United States through alternative immigration channels. This could include applying for a different visa category, seeking asylum, or petitioning for lawful permanent residency if eligible under another immigration pathway. In certain cases, they may appeal the denaturalization decision or request judicial review, especially if the revocation was based on misinterpreted facts or due process violations.

However, once denaturalized, the road to reentry becomes significantly more difficult. The individual is typically viewed by immigration authorities as having committed fraud or misrepresentation, which can result in permanent inadmissibility.

Even if another visa or residency path is theoretically available, waivers are difficult to obtain, and scrutiny is far more intense. Moreover, re-naturalization—if permitted at all—is not guaranteed and depends on the circumstances of the original denaturalization, the outcome of any appeals, and whether the individual can meet all current eligibility standards without disqualifying factors.

Future of the EB-5 Program and Citizenship Security

The EB-5 Reform and Integrity Act of 2022 introduced new compliance and oversight mechanisms that further reduce the risk of fraudulent investments. These changes strengthen investor protection and improve the long-term credibility of the program.

Additionally, the shift toward increased transparency and accountability in EB-5 regional centers offers further safeguards.

Investors who follow the rules, work with credible advisors, and provide honest, verifiable documentation can rest assured: the risk of denaturalization US citizenship is extremely low when the EB-5 process is followed lawfully.

Conclusion

While the idea of losing U.S. citizenship through denaturalization may raise concerns, EB-5 investors who comply with the law have little to fear. The EB-5 process involves multiple checkpoints, regulatory oversight, and legal scrutiny—each one designed to verify the legitimacy of the investor and the investment.

By working with a professional EB5 investment advisor, choosing trustworthy EB-5 regional centers, and documenting the source of a US green card by investment accurately, investors can enjoy long-term peace of mind.

In summary, while denaturalization US citizenship is legally possible, it is extraordinarily rare for EB-5 investors acting in good faith. The key to protection is transparency, professional support, and ongoing compliance.

Note: This article is for informational purposes only and does not constitute legal advice. Investors should consult with qualified immigration attorneys and advisors for guidance specific to their situation.