Quiros agrees to settlement

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copyright the Chronicle August 30, 2017

 

by Joseph Gresser

 

Ariel Quiros, the owner of Jay Peak, has followed the path blazed several months ago by Bill Stenger, the resort’s former president, and agreed to a settlement on civil charges of investment fraud. Mr. Quiros promised to accept U.S. District Court Darrin Gayles’ decision on how much of the money he got from illegal actions he will return to investors and what penalties he must pay.

Mr. Quiros, in agreeing to the settlement, neither admitted nor denied guilt.

Judge Gayles accepted the settlement worked out between the federal Securities and Exchange Commission (SEC) and Mr. Quiros, and the case was marked closed on August 23.

A temporary injunction that forbade him to be involved with companies seeking investments through the federal EB-5 program has been made permanent. In addition, Mr. Quiros has agreed to not appeal any penalties the judge assesses or try to deduct them from his income taxes.

He will be required to pay whatever amount Judge Gayles deems appropriate with interest calculated from April 16, 2016, the day charges were unsealed. The agreement says Mr. Quiros will pay the same interest rate the Internal Revenue Service charges taxpayers who owe it money.

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Judge approves $150-million settlement

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copyright the Chronicle July 5, 201

 

by Joseph Gresser

 

U.S. District Court Judge Darrin Gayles cleared the way for contractors, merchants, and some EB-5 investors to recover money Jay Peak and Burke Mountain Resorts owes them.

On Friday he gave final approval to a $150-million settlement reached between Michael Goldberg, the court-appointed receiver, and Raymond James & Associates, a financial services company accused of enabling Jay Peak owner Ariel Quiros’ alleged fraud.

Judge Gayles tersely described the EB-5 program as one “through which an investor who invested $500,000 in a project that created ten or more jobs per investor would be eligible to apply for unconditional, permanent residency in the United States on an expedited basis.”

While Mr. Quiros owned Jay Peak and Burke Mountain Resorts, his companies ran eight such EB-5 projects. Six of them were completed or will soon be completed so their investors will qualify for permanent residency in the U.S.

The Burke Mountain Hotel opened for business last fall, but some planned amenities were never built, so not enough jobs were created to make all its investors eligible for green cards.

AnC Bio, the biomedical facility that was to be built in Newport, barely got off the ground, so none of its investors will qualify for U.S. residency.

According to civil fraud charges filed by the U.S. Securities and Exchange Commission (SEC), Mr. Quiros misappropriated about $220-million of the $350-million investors put into his projects. He was also accused by the commission of taking more than $50-million for his own use.

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Lawsuit claims EB-5 fraud started in 2008

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copyright the Chronicle April 12, 2017

 

by Joseph Gresser

 

BURLINGTON — Two investors in EB-5 projects at Jay Peak Resort claim that securities fraud at the ski area started in 2008 when Ariel Quiros paid for the resort using money meant to build hotels. They also say Jay Peak’s former owner had to know what was going on.

Antony Sutton and a man referred to only as John Doe filed a civil lawsuit in U.S. District Court for Vermont on April 7 and charged Saint-Sauveur Valley Resorts, Inc., the former owner, with turning a blind eye as Mr. Quiros paid with money that they told him was meant solely for improvements to the resort.

The two want Saint-Sauveur to return $21.9-million they claim it first gave to Mr. Quiros and then improperly accepted as payment when he bought the resort from the Canadian company.

Mr. Sutton invested $500,000 in Jay Peak Hotel Suites LP (Phase I), and Mr. “Doe” put the same amount into Jay Peak Hotel Suites II LP (Phase II).   Both projects raised money through the federal EB-5 visa program, which trades investments in job-creating companies for a U.S. Green Card and a path to citizenship.

The first two of what would eventually be seven such projects were started by Saint-Sauveur and taken over by Mr. Quiros when he bought Jay Peak.

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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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