Citibank has interest in Quiros funds

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copyright the Chronicle May 4, 2016

by Joseph Gresser

After only a couple of weeks on the job, the receiver for Jay Peak, Burke Mountain, and other businesses owned by Ariel Quiros seems to have things well under control.

In a news conference on Wednesday, April 27, Michael Goldberg said he now has enough money to keep Jay Peak operating and to get the new hotel at Q Burke open.

“All we need is snow,” the Florida lawyer said, sounding exactly like the ski area owner he suddenly became when federal Judge Darrin Gayles of U.S. District Court for the Southern District of Florida appointed him.

In doing so he gave Mr. Goldberg control of assets belonging to Mr. Quiros and his companies, including his bank accounts.

Since his appointment, he has asked for further authority, including control of Burke Mountain and its associated companies, and Judge Gayles agreed.

Mr. Quiros disputes the charges against him, and will first argue his case in a hearing scheduled for…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Jay Peak is alarmingly short of money

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copyright the Chronicle April 27, 2016

by Joseph Gresser

Jay Peak may not have enough money to keep going through the summer, said Michael Goldberg, the Florida lawyer put in charge of overseeing the collection of EB-5 projects centered around the ski resort.

“I have learned that the Receivership Entities are in dire financial position and in danger of not having sufficient funds to continue operating beyond the very immediate future,” he wrote in a declaration directed to the U.S. District Court for Southern Florida.

Mr. Goldberg was given control of Jay Peak and the other assets of its owner, Ariel Quiros, by federal judge Darrin Gayles on April 13.  As the court-appointed receiver he has been investigation the finances of a network of companies connected with Jay Peak’s EB-5 project as well as those of the ski resort itself.

The SEC has alleged that Bill Stenger and Mr. Quiros misused about $200-million of…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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EB-5: Suspicions arose in 2010

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copyright the Chronicle April 27, 2016

by Tena Starr

A suspicious Securities and Exchange Commission (SEC) started questioning Bill Stenger and Ariel Quiros, owner of Jay Peak and Q Burke, back in May of 2014.  But they weren’t the only ones who were suspicious, and they certainly were not the first.

Four years earlier, in 2010, John Carpenter, who was then controller at the ski area, told Mr. Stenger he believed something was awry, according to SEC documents.  For one thing, he could not get access to the accounts at financial services company Raymond James, held by Mr. Quiros, which he’d repeatedly asked for, he told the SEC in a so-called “declaration.”

Mr. Carpenter’s quotes here come from that document.

The SEC is alleging that the Northeast Kingdom EB-5 projects were actually a giant Ponzi-like scheme, in which $200-million of…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Lawsuits claim massive fraud

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copyright the Chronicle April 20, 2016

by Chris Braithwaite

The fix was in from the beginning.

That grim conclusion emerges from a reading of the civil lawsuits state and federal officials have filed against Bill Stenger, Ariel Quiros, Jay Peak, Inc., Q Resorts, Inc., and a host of the corporations and partnerships the two men have established over the past eight years.

Ever since he announced that he was a part owner of Jay Peak in 2008, Mr. Stenger has presided over a stunning series of expansion programs aimed at converting the ski area to a year-round resort. All were funded by foreign investors seeking immigrant status under the EB-5 visa program, which rewards half-million-dollar job-creating investments with a green card.

And, as Mr. Stenger never tired of telling skeptical critics, five of the six major expansions he’s undertaken at Jay have been finished as promised; they’re up and running.

But the state and federal complaints allege…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Stenger pled ignorance to SEC in 2014

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copyright the Chronicle April 20, 2016

by Chris Braithwaite

When investigators with the U.S. Securities and Exchange Commission asked Bill Stenger whether his partner had bought Jay Peak resort with money misappropriated from foreign investors, Mr. Stenger said he didn’t know.

That was the gist of Mr. Stenger’s answers in May 2014, when he was summoned to Miami, Florida, to answer questions about how Ariel Quiros became the owner of Jay Peak in June 2008.

In the lawsuit it filed last week, the SEC charged that Mr. Quiros’ diversion of the investors’ funds to buy the ski area was the beginning of a “massive eight-year fraudulent scheme” that led them to seize both Jay Peak and Q Burke Mountain last week.

When asked if he knew if any of the funds Mr. Quiros used to buy Jay Peak were investor’s funds that had been transferred to a Miami brokerage house, Mr. Stenger’s reply was vague:

“I don’t know if they were or not,” he said according to a transcript of his deposition. “They might have been. I don’t know.”

Mr. Stenger’s alleged role…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Construction of AnC Bio plant gets underway

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Many of those involved in planning AnC Bio help turn over the first shovels of dirt on May 14.  From left to right, are Vermont State Aeronautics Administrator Guy Rouelle, Jane Fortin and Cindy Robillard of the state Department of Labor, North Country Career Center Director Ilene Illuzzi, Alex Choi, former CEO of AnC Bio Korea, Jerry Davis of PEAK CM, Newport City Mayor Paul Monette, Ariel Quiros, co-owner of Jay Peak Resort and Mr. Stenger’s partner in AnC Bio, Bob Brown Petersen of NME Pharmaplan, AnC Bio Vermont CEO Ike Lee, Jake Lee, who heads development of artificial organs for AnC Bio, and Bill Stenger, president of Jay Peak Resort.  Photo by Joseph Gresser

Many of those involved in planning AnC Bio help turn over the first shovels of dirt on May 14. From left to right, are Vermont State Aeronautics Administrator Guy Rouelle, Jane Fortin and Cindy Robillard of the state Department of Labor, North Country Career Center Director Ilene Illuzzi, Alex Choi, former CEO of AnC Bio Korea, Jerry Davis of PEAK CM, Newport City Mayor Paul Monette, Ariel Quiros, co-owner of Jay Peak Resort and Mr. Stenger’s partner in AnC Bio, Bob Brown Petersen of NME Pharmaplan, AnC Bio Vermont CEO Ike Lee, Jake Lee, who heads development of artificial organs for AnC Bio, and Bill Stenger, president of Jay Peak Resort. Photo by Joseph Gresser

copyright the Chronicle May 20, 2015

by Joseph Gresser

NEWPORT — The long-delayed groundbreaking for AnC Bio took place under fair skies Thursday morning, May 14. Speakers hailed prospects for the $100-million biomedical facility, which is expected to employ between 400 and 500 people when it’s up and running in a year and a half.

They will include people involved in manufacturing artificial organs, technicians to help run equipment in the clean room suites that will be available for rent by independent researchers, and scientists to perform research on stem cell therapies, said Bill Stenger, president of Jay Peak and one of the principals of AnC Bio Vermont. Mr. Stenger said people with education levels up to post-graduate degrees could find jobs at AnC Bio…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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AnC Bio is back on track

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A rendering of the proposed 85,000-square-foot AnC Bio building.  According to the permit, a portion of the eastern side of the present Bogner building will be demolished to build the new structure.  When complete the plant is expected to employee as many as 500 people.  Photo by Joseph Gresser

A rendering of the proposed 85,000-square-foot AnC Bio building. According to the permit, a portion of the eastern side of the present Bogner building will be demolished to build the new structure. When complete the plant is expected to employee as many as 500 people. Photo by Joseph Gresser

copyright the Chronicle April 1, 2015

by Joseph Gresser

NEWPORT — AnC Bio, the biomedical facility being developed with money from the federal EB-5 visa program, is back on track. A press release from Jay Peak late Tuesday afternoon said the state Department of Financial Regulation (DFR) has approved a revised “private placement memorandum.”

The expiration of that document, which serves as a guide that potential investors can use to judge the potential risks and rewards of a project, led the state to ask Jay Peak to suspend its search for investors last year.

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Stenger admits investors were informed late

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The Tram Haus Lodge is the first project using EB-5 funds to be completed at Jay Peak.  Some investors in the project are unhappy about changes to the ownership structure made unilaterally by Bill Stenger and Ariel Quiros, the general partners in the project.  Investors were notified of the changes nine months after they were put into effect.  Photo by Joseph Gresser

The Tram Haus Lodge is the first project using EB-5 funds to be completed at Jay Peak. Some investors in the project are unhappy about changes to the ownership structure made unilaterally by Bill Stenger and Ariel Quiros, the general partners in the project. Investors were notified of the changes nine months after they were put into effect. Photo by Joseph Gresser

copyright the Chronicle August 6, 2014 

by Joseph Gresser

JAY — Bill Stenger and Ariel Quiros didn’t live up to state standards when they waited nine months before notifying 35 EB-5 investors they had dissolved the partnership that owned the Tram Haus Lodge at Jay Peak Resort, according to Brent Raymond, director of International Trade and the Vermont EB-5 Regional Center.

Mr. Stenger, co-owner of Jay Peak along with Mr. Quiros, agrees that the notification process was botched.

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Spates Block sale spurs Newport City reappraisal

Newport's Spates Block just sold for $2.85-million.  Photo by Joseph Gresser

Newport’s Spates Block just sold for $2.85-million. Photo by Joseph Gresser

copyright the Chronicle January 8, 2014

by Joseph Gresser

NEWPORT — The $2.85-million sale of the Spates Block will change the face of downtown Newport.  It will also require the city to revalue all property on its Grand List.

According to a memo from City Assessor Spencer Potter, the sale, along with the $1.1-million sale of the properties on which the new Maplefields gas station is to be built, will bring a call from the state for mandatory reappraisal.

City Manager John Ward urged the aldermen to act quickly on the matter at the city council’s meeting Monday night.  They heeded his advice and unanimously agreed to proceed with a full reappraisal of Newport.

Mr. Ward said it is quite possible that new sales will drop the city’s Common Level of Appraisal (CLA) enough that the state will raise education tax rates to compensate.  The CLA is a measure the state uses to ensure fairness in the statewide tax by making sure appraisals in all towns generally match the results of actual sales.

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Flight Design USA will hire 100

Governor Peter Shumlin cuts the ribbon on the Stateside Baselodge on Friday, December 20.  On hand to celebrate the opening, from left to right, are:  Vermont Commissioner of Commerce and Community Development Lawrence Miller, Filippe Acciolye, an investor in the project from Brazil, Ariel Quiros, co-owner of Jay Peak, Governor Shumlin, state Senator John Rodgers, state Senator Robert Starr, Bill Stenger, co-owner of Jay Peak, Steve Wright, marketing director for Jay Peak, and William Kelly, counsel for Jay Peak.  Photos by Joseph Gresser

Governor Peter Shumlin cuts the ribbon on the Stateside Baselodge on Friday, December 20. On hand to celebrate the opening, from left to right, are: Vermont Commissioner of Commerce and Community Development Lawrence Miller, Filippe Acciolye, an investor in the project from Brazil, Ariel Quiros, co-owner of Jay Peak, Governor Shumlin, state Senator John Rodgers, state Senator Robert Starr, Bill Stenger, co-owner of Jay Peak, Steve Wright, marketing director for Jay Peak, and William Kelly, counsel for Jay Peak. Photos by Joseph Gresser

by Joseph Gresser

JAY — At the opening of the new Stateside Baselodge Friday, Jay officials threw in a pair of bonus announcements.  A new aircraft company will bring more than 100 skilled jobs to Coventry, and the sale of the Spates Block on Main Street in Newport to Jay Peak co-owners Bill Stenger and Ariel Quiros has been finalized.

At a press conference that followed the opening of the 84-room hotel, Mr. Quiros said he has bought Flight Design USA, the company that announced plans this summer to assemble and sell ultra-light planes at the Newport State Airport in Coventry.

Flight Design USA was the American branch of a German company, and the initial agreement allowed the Newport branch to act as one of six U.S. distributors of the company’s two-seater plane.

The new company, called Flight Design Americas, LLC, will have exclusive rights to sell planes in North America, South America and Central America, Mr. Quiros said.

The company expects to hire around 100 engineers, trained mechanics and assembly workers, he said.  It projects sales of as many as 200 planes a year by the third year of production.

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