SEC wins early victory against Quiros

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copyright the Chronicle November 23, 2016

by Joseph Gresser

 

In a ruling issued Monday, U.S. District Judge Darrin Gayles gave the Securities and Exchange Commission (SEC) an early victory in its suit against Ariel Quiros. The federal agency was granted its request for a preliminary injunction to keep things as they have been since it went to court in April and charged Mr. Quiros with securities fraud.

The judge’s ruling maintains the status quo until the underlying issues in the civil suit are resolved at trial. That means Mr. Quiros’ property remains under the control of Michael Goldberg, the court-appointed receiver, and Mr. Quiros is barred from any kind of involvement in businesses connected with the federal EB-5 visa program.

When the case comes to trial, Mr. Quiros faces the prospect of being forced to disgorge as much as $200-million in money the government said was improperly used. Mr. Quiros has also been charged with taking more than $50-million for his personal use.

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EB-5 investors take aim at Quiros and Raymond James

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copyright the Chronicle June 15, 2016

by Joseph Gresser

The major skirmishes in the legal battle over Jay Peak’s EB-5 projects seem to have settled down, at least for the moment. Civil suits filed against Ariel Quiros, the owner of Jay Peak and Burke Mountain resorts, and his companies, along with Bill Stenger, former president of Jay Peak, have been filed in federal court by the U.S. Securities and Exchange Commission (SEC) and, in Vermont Superior Court, by the state Department of Financial Regulation.

Both allege that Mr. Quiros, with the help of Mr. Stenger, misused around $200-million of the $350-million they raised from foreign investors hoping to get green cards in exchange for putting money into a job-creating project. Mr. Quiros is also accused of taking about $55-million for his own use.

Mr. Quiros’ businesses and property have been put in the hands of Michael Goldberg, appointed receiver…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Jay Peak tram won’t be repaired until next spring

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copyright the Chronicle June 8, 2016

by Joseph Gresser

The state has ordered that the tram at Jay Peak be shut down until critical repairs are made. And the only company that can do the work has said Jay must wait until April of next year for the upgrade work.

The area’s main lift needs immediate attention, and that means lots of money, Michael Goldberg, the receiver for Jay Peak Resort, Burke Mountain Resort, and the other businesses owned and run by Ariel Quiros, told U.S. District Judge Darrin Gayles in a ten-page motion on June 1.

Judge Gayles, who appointed Mr. Goldberg, is presiding over a civil suit filed against Mr. Quiros, Bill Stenger, former president of Jay Peak, and their associated network of companies. The suit was filed by the federal Securities and Exchange Commission (SEC) in U.S. Court…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Quiros allowed $15,000 a month for expenses

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copyright the Chronicle June 1, 2016

by Joseph Gresser

U.S. District Court Judge Darrin Gayles granted, in part, Ariel Quiros’ request for money to pay legal fees and living expenses last week. The same day Mr. Quiros, the owner of Jay Peak and Burke Mountain resorts, and the federal Securities and Exchange Commission (SEC) appeared to argue whether his assets and companies should be placed under a receivership.

Mr. Quiros’ assets were frozen and placed under the control of a receiver in April after he and Bill Stenger, former president of Jay Peak, were charged by the SEC with civil offenses including mishandling, comingling, and, in the case of Mr. Quiros, misappropriating about $200-million.

The money was invested in hotels and other projects at Jay Peak and Burke Mountain and in a biomedical facility in Newport by foreigners who hoped to gain permanent residency status through the federal EB-5 visa program…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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SEC turns up heat on Quiros

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copyright the Chronicle May 18, 2016

by Joseph Gresser

Federal regulators turned up the heat on Ariel Quiros Tuesday when they filed an amended complaint in the civil case against the owner of Jay Peak Resort.  Mr. Quiros, along with many of his businesses, and Bill Stenger, former president of Jay Peak, were first charged with violating federal securities laws in connection with several EB-5 funded projects in a suit filed on April 12 by the Securities and Exchange Commission (SEC).

In filing an amended version of its initial complaint Tuesday, the SEC sharpened its accusations against Mr. Quiros, specifically charging that he used investor money from later phases of his eight EB-5 projects to make up shortfalls in earlier phases.

The SEC has held all along that Mr. Quiros misused, wrongly co-mingled, and stole money from foreign investors who sought permanent residency status in the U.S. by means of the EB-5 visa program.  Those investors and their families would be eligible for green cards if their $500,000 investments in a business in a hard-up area of the U.S. produced at least ten permanent jobs.

Jay Peak financed extensive developments, including three hotels, a water park, a skating area, and numerous other vacation properties, through the visa program.  Mr. Quiros also used money from the program to pay for a hotel at Burke Mountain, and planned to build a biomedical facility in Newport with EB-5 investment.

The SEC claims Mr. Quiros took $55-million for himself and could leave investors without their money or a path to residency in the U.S. if his most recent projects remain unfinished.

In the amended version of its complaint, the SEC specified which projects it claims Mr. Quiros stole from and details how he used the money he allegedly took.

The amended charges say Mr. Quiros and his associates took $6.5-million more than they were entitled to from the project that built the golf clubhouse and a number of condominiums at Jay Peak.  Mr. Quiros also failed to invest a promised $3.8-million…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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EB-5 investor files suit against Raymond James

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copyright the Chronicle May 11, 2016 

by Joseph Gresser

Jay Peak’s EB-5 projects are keeping Miami’s federal court hopping.

A disappointed investor has launched a class action suit aimed directly at the deep pockets of Raymond James, the financial services company that acted as the bank for Jay Peak owner Ariel Quiros. Like the other civil cases aimed at Jay Peak’s foreign investor program this was filed in U.S. District Court for the Southern District of Florida.

Mr. Quiros has filed a challenge to the temporary restraining order issued by federal Judge Darrin Gayles that put his assets, including Jay Peak and Burke Mountain, into the hands of a receiver.

He has also asked Judge Gayles to release almost $300,000 to pay legal costs for his defense against charges laid against him by the Securities and Exchange Commission (SEC).

In turn, the SEC has asked Judge Gayles to deny Mr. Quiros’ request for access to enough money to pay living expenses amounting to around $100,000 a month. In its filing…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Quiros asks for “reasonable” living expenses

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copyright the Chronicle May 11, 2016 

by Joseph Gresser

Ariel Quiros, the owner of Jay Peak and Burke Mountain, has asked federal Judge Darrin Gayles to allow him access to enough money to cover what he considers reasonable living expenses.

The U.S. Securities and Exchange Commission (SEC) strongly disagrees with Mr. Quiros’ idea of what is reasonable.

The SEC called the nearly $100,000 a month Mr. Quiros said he needs to live on an “outrageous sum” in its motion opposing the release of the money.

About $90,000 of that amount is for “luxury items, non-necessities, or for undocumented expenses,” the SEC said.

Those include car lease payments of $3,295 for one of his automobiles, and $1,761 for one driven by his wife, and storage and upkeep payments for his collection of military jeeps of about $3,000 a month.

Mr. Quiros said he pays $147 a month to a yacht club and…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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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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