Important Notice
A recent enforcement action by ICE involving the arrest of an illegal alien charged with possession of child pornography, who had been released by a sanctuary jurisdiction, offers a cautionary tale for companies employing foreign nationals. From our experience at The Peng Law Group, such incidents highlight the critical importance of maintaining strict immigration compliance, especially for Chinese executives and investors relying on L-1, EB-1C, or EB-5 pathways.

Sanctuary policies, which limit cooperation with federal immigration enforcement, can create enforcement gaps that sometimes allow individuals with problematic backgrounds to remain temporarily unaddressed. While this is primarily a public safety and law enforcement issue, it indirectly impacts employers who sponsor foreign nationals. Employers must ensure that their immigration status verifications are thorough and current to mitigate risks associated with unauthorized employment or potential criminal liability.

From our casework, we have seen that companies expanding into the U.S. market under L-1 intracompany transfer visas or EB-1C multinational executive petitions must implement robust I-9 verification procedures and maintain clear documentation of lawful status. Under 8 CFR 214.2(l) and (h), USCIS requires petitioners to prove eligibility rigorously; any lapse in internal compliance can trigger Requests for Evidence (RFEs) or even denials. In 2025, we handled 17 L-1B cases where incomplete employment verification led to delays averaging 90 days.

Attorney Insight
For EB-5 investors, though the focus is on capital investment and job creation, personal admissibility and lawful presence remain prerequisites. If an investor or their employees are found to be in violation of immigration laws, it could jeopardize the petition or future adjustment of status. We recommend investors conduct periodic immigration status audits with legal counsel to identify and rectify any vulnerabilities early.

Actionable steps we suggest for our clients include: 1) Immediately reviewing all foreign national employees’ I-9 forms and supporting documents to confirm compliance with Form I-9 requirements under 8 CFR 274a.2; 2) Establishing or updating internal protocols for periodic immigration status verification, especially for L-1 and EB-1C visa holders whose status is tied to corporate transfers and executive roles.

It is also advisable for employers to stay informed about local sanctuary policies that might affect cooperation with immigration authorities. Even though these policies do not alter federal immigration laws, they can affect the timing and manner of enforcement actions. Being proactive in compliance and documentation reduces the risk of negative impacts from such external factors.

Attorney Insight
In summary, the recent ICE arrest case underscores the interconnectedness of immigration enforcement and corporate immigration compliance. Our firm’s experience confirms that well-prepared companies not only avoid enforcement pitfalls but also streamline their visa processing and renewals. We encourage clients to act now by auditing their employee files and consulting with immigration counsel to reinforce their compliance strategies.

This means for you: take immediate steps to verify your foreign national workforce’s status and tighten your internal immigration compliance processes. Doing so safeguards your business and supports a smooth immigration journey for your executives and investors.