Karakenyan v. U.S. Citizenship and Immigration Services

District Court, District of Columbia·Decided June 22, 2020·No. Civil Action No. 2020-0346·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

VALERIY KARAKENYAN,

Plaintiff, v. Civil Action No. 20-346 (JEB)

U.S. CITIZENSHIP AND IMMIGRATION, et al.,

Defendants.

MEMORANDUM OPINION

This case presents the latest installment in Plaintiff Valeriy Karakenyan’s long-running quest to qualify for the EB-5 visa program, a category reserved for aliens who make qualifying investments in United States commercial projects. Plaintiff enjoyed some success when Defendant United States Citizenship and Immigration Services approved his initial petition, but he was ultimately stymied when the agency revoked that approval. Karakenyan believes that he satisfied the prerequisites for the EB-5 program and that USCIS and Defendant Department of State violated the Immigration and Nationality Act and the Administrative Procedure Act in denying him access to it. He asks the Court, among other things, to set aside USCIS’s revocation of his petition and declare that he is eligible for an EB-5 visa.

The Government does not parry Plaintiff’s arguments on the merits but instead moves to dismiss on jurisdictional grounds. This is a wise strategy, as the Court agrees with Defendants that Congress has divested courts of jurisdiction over Plaintiff’s claims against USCIS, which present non-justiciable challenges to the merits of the agency’s revocation decision. Karakenyan’s attempts to recast this substantive challenge as a procedural one or as presenting a

predicate legal question fare no better. Nor does he gain traction in suing the State Department as he lacks standing to pursue this Defendant. The Court will therefore grant the Motion. I. Background A. EB-5 Program One of myriad creations of the Immigration and Nationality Act, the EB-5 Immigrant Investor Program “grants legal resident status to qualified foreign nationals who invest capital in a new commercial enterprise.” Wang v. U.S. Citizenship & Immigration Servs., 375 F. Supp. 3d 22, 26 (D.D.C. 2019); see also 8 U.S.C. § 1153(b)(5). To qualify for an EB-5 visa, an individual must invest at least $1 million into a new, restructured, or expanded business or commercial project in the United States. See 8 U.S.C. § 1153(b)(5). The investment must, among other things, create at least ten full-time jobs for United States workers, and the applicant must demonstrate that she “will be engaged in the new commercial enterprise, either through the exercise of day-to-day managerial control or through policy formulation.” 7 C.F.R. § 204.6(j); see also 8 U.S.C. § 1153(b)(5).

Participating in the EB-5 process is no stroll in the garden, however; it involves several stages and unfolds over a period of years. An individual must first submit a Form I-526 petition to USCIS to “establish that he or she is eligible for the requested benefit at the time of filing the benefit request.” 8 C.F.R. § 103.2(b)(1). If her petition is approved, she may apply for two-year conditional-permanent-resident status — also referred to as a conditional green card —from either within the United States (referred to as an “adjustment of status”) or overseas from the State Department at a consular post in the alien’s home country (referred to as “consular processing”). See 8 U.S.C. § 1186b(a)(1); 8 C.F.R. §§ 204.6(l), 245.2; 22 C.F.R. §§ 42.32(e), 42.41, 42.42. After the individual has spent two years in this form of permanent-resident status

and if she wants to remain in the United States, she must apply to have the conditional nature of her green card removed using USCIS’s Form I-829. See 8 U.S.C. § 1186b(c).

This case primarily concerns the first stage in that process — the Form I-526 petition.

Before delving into the details of Plaintiff’s story, it bears mentioning that “[a]n approved visa petition is merely a preliminary step in the visa application process.” Tongatapu Woodcraft Haw., Ltd. v. Feldman, 736 F.2d 1305, 1308 (9th Cir. 1984); see also Bernardo ex rel. M & K Eng’g, Inc. v. Johnson, 814 F.3d 481, 506 (1st Cir. 2016) (Lipez, J., dissenting) (quoting Tongatapu Woodcraft Haw., Ltd., 736 F.2d at 1308). The agency “may, at any time,” revoke the approval of a visa petition for what it “deems to be good and sufficient cause.” 8 U.S.C. § 1155. Once USCIS has produced evidence to show cause for revoking the petition, the alien bears the ultimate burden of proving eligibility. See Tongatapu Woodcraft Haw., Ltd., 736 F.2d at 1308. A petitioner may also file an appeal of the agency’s decision to revoke the approval of a visa petition with USCIS’s Administrative Appeals Office. See 8 C.F.R. §§ 103.3(a)(1)(iii), 205.2(d).

B. Karakenyan’s Petition The Court, as it must at this stage, draws the facts from the Complaint. See Sparrow v.

United Air Lines, Inc., 216 F.3d 1111, 1113 (D.C. Cir. 2000). Plaintiff is a citizen of Russia, Greece, and Armenia who made his fortune through automobile-related businesses in Russia. See ECF No. 1 (Complaint), ¶ 3. In 2005, Karakenyan created a property-management business in the United States into which he invested more than $83 million. Id. In light of his substantial investments here, Plaintiff embarked on the EB-5 application process by submitting a Form I- 526 petition to USCIS in August 2013. Id., ¶ 4. Defendant approved that petition on October 26, 2015. Id. Plaintiff next sought consular processing via an interview at the United States consulate in Russia. For ten months, however, USCIS failed to transfer his I-526 petition

approval to the Department of State, a step predicate to Karakenyan’s scheduling of an interview. Id., ¶ 5. Seeking prompt action on the part of the Government, Plaintiff filed a mandamus suit in the Central District of California. Karakenyan v. Johnson, No. 16-6397 (C.D. Cal. Aug. 25, 2016). The suit had its intended effect, and his file was transferred to the State Department. Compl., ¶ 6. Plaintiff thereafter attended a visa interview in Moscow on November 15, 2017. Id., ¶ 7.

Unfortunately for Karakenyan, the more things changed, the more they stayed the same.

The Government again left his visa request in limbo, and Karakenyan filed another mandamus action to force the Government to expedite the process. Id.; see also Karakenyan v. Sessions, No. 18-5115 (C.D. Cal. June 8, 2018). This suit was less successful, as the State Department allegedly then recommended that USCIS revoke the approval of his I-526 petition. Id., ¶¶ 8–9. USCIS thus sent Karakenyan a Notice of an Intent to Revoke the petition, and on November 2, 2018, it did, in fact, revoke it. Id., ¶¶ 8–10; see also ECF No. 16 (Pl. Opp.), Exh. 1 (Notice of Revocation Decision).

The agency’s revocation decision rested on two grounds. First, USCIS found reason to doubt Plaintiff’s assertion that his investment would create at least ten full-time positions within two years, a key statutory mandate. See 8 C.F.R. § 204.6(j)(4)(i); 8 U.S.C. § 1153(b)(5)(A)(ii). As it turned out, two individuals Karakenyan had listed as his enterprise’s full-time employees on the I-526 petition owned their own accounting firms with their own employees at the time of his filing. The apparent impossibility of these persons’ dual full-time employments caused the agency to question Karakenyan’s credibility along with his need for the other jobs claimed in the petition. See NRD at 7. Second, the agency was skeptical that Karakenyan would be sufficiently “engaged in the management of the new commercial enterprise,” as required by the

relevant regulations, given certain restrictions on the trust that had established his business. Id. at 7–8.

Free access — add to your briefcase to read the full text and ask questions with AI

Karakenyan v. U.S. Citizenship and Immigration Services, (D.D.C. 2020).

Karakenyan v. U.S. Citizenship and Immigration Services (Karakenyan v. U.S. Citizenship and Immigration Services) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Kucana v. Holder
558 U.S. 233 (Supreme Court, 2010)
Ghanem v. Upchurch
481 F.3d 222 (Fifth Circuit, 2007)
Block v. Community Nutrition Institute
467 U.S. 340 (Supreme Court, 1984)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Green v. Napolitano
627 F.3d 1341 (Tenth Circuit, 2010)
Sparrow, Victor H. v. United Airlines Inc
216 F.3d 1111 (D.C. Circuit, 2000)
Zhu, Zhouqin v. Gonzales, Alberto
411 F.3d 292 (D.C. Circuit, 2005)
Trudeau v. Federal Trade Commission
456 F.3d 178 (D.C. Circuit, 2006)
Victor Herbert v. National Academy of Sciences
974 F.2d 192 (D.C. Circuit, 1992)
Mehanna v. US CITIZENSHIP AND IMMIGRATION SERVS.
677 F.3d 312 (Sixth Circuit, 2012)
Abdelwahab v. Frazier
578 F.3d 817 (Eighth Circuit, 2009)
Mohammad v. Napolitano
680 F. Supp. 2d 1 (District of Columbia, 2009)
Grand Lodge of the Fraternal Order of Police v. Ashcroft
185 F. Supp. 2d 9 (District of Columbia, 2001)
Vemuri v. Napolitano
845 F. Supp. 2d 125 (District of Columbia, 2012)
Jilin Pharmaceutical USA, Inc. v. Chertoff
447 F.3d 196 (Third Circuit, 2006)