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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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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Stenger and state spar over finances

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copyright the Chronicle April 13, 2016

by Joseph Gresser

EAST BURKE – A long-running disagreement between the sponsors of two EB-5-funded projects and state regulators has been thrown into sharp relief through an exchange of letters between the owners of Q Burke Resort and the commissioner of the Department of Financial Regulation (DFR).

On March 25, Commissioner Susan Donegan of the DFR sent a letter to Bill Stenger, one of the Q Burke partners and co-owner of Jay Peak Resort, in which she accused him of failing “to engage in best business practices.”

That failure, Ms. Donegan maintained, made it impossible for her to give the Q Burke partners complete access to investors’ money now held.…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Stenger says Newport plans are on track

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copyright the Chronicle April 6, 2016

by Joseph Gresser

NEWPORT – Bill Stenger says his plans for Newport are on track, although those related to the AnC Bio facility are undergoing some modifications in reaction to changes in the direction of biomedical technology.

In a conversation Monday, just after he returned from seeking investors in South Africa, Mr. Stenger said plans have been modified to allow the facility to manufacture products for gene therapy products in addition to those based on stem cells.

Gene therapy requires changes to “air flow, water flow, and people flow” in the plant, he said.

Mr. Stenger said the design modifications are necessary to keep pace…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Stenger lays out ambitious plans for airport

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Bill Stenger, standing, lays out his plans for the future of the airport in Coventry.  Listening, from left to right, are Guy Rouelle of VTrans, Scott Wheeler, and Ary Quiros, who heads Flight Design Americas, a company that plans to manufacture light airplanes at the airport.  The meeting was held in an aircraft hangar because Parker Pie Wings has permanently closed its doors.  Photo by Joseph Gresser

Bill Stenger, standing, lays out his plans for the future of the airport in Coventry. Listening, from left to right, are Guy Rouelle of VTrans, Scott Wheeler, and Ary Quiros, who heads Flight Design Americas, a company that plans to manufacture light airplanes at the airport. The meeting was held in an aircraft hangar because Parker Pie Wings has permanently closed its doors. Photo by Joseph Gresser

copyright the Chronicle August 5, 2015

by Joseph Gresser

COVENTRY — A crowd of about 30 pilots legislators, reporters, and the curious found their way to a hangar at what will soon be the Northeast Kingdom International Airport on Thursday afternoon, July 30. The attraction was Bill Stenger, who arrived with a drawing of a new 10,000-square-foot terminal building that he said will be built starting in the spring of 2016.

In addition to the terminal, Mr. Stenger outlined plans that include a bonded warehouse and a building for the manufacture of Flight Design light aircraft.

A bonded warehouse allows goods that Customs duties are ordinarily paid on to be stored without the need to pay duties. Orleans, Lamoille, and Caledonia counties are…To read the rest of this article, and all the Chronicle‘s stories, subscribe:

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Ward attends his last city council meeting

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City Manager John Ward (right) offers a suggestion to Newport’s aldermen at his last city council meeting.  To his left sat Alderman Steven Vincent.  Photos by Joseph Gresser

City Manager John Ward (right) offers a suggestion to Newport’s aldermen at his last city council meeting. To his left sat Alderman Steven Vincent. Photos by Joseph Gresser

copyright the Chronicle July 8, 2015

by Joseph Gresser

NEWPORT — As Mayor Paul Monette listed those in attendance at Monday’s city council meeting he noted a milestone.

“For the last time John Ward is sitting as city manager,” Mr. Monette said.

Mr. Ward, who has served as city manager for 15 years, and was an alderman before that, will retire on July 15.

The council chose his replacement, Laura Dolgin, at a special meeting held Wednesday, July 1. She sat at the back of the council’s chambers Monday taking notes.

Mr. Ward’s impending departure was… 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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