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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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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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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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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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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No special scrutiny for AnC Bio

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Bill Stenger.  Photo by Richard Creaser

Bill Stenger. Photo by Richard Creaser

copyright the Chronicle March 25, 2015

by Joseph Gresser

NEWPORT — Despite reports to the contrary the AnC Bio biomedical project is not being given special scrutiny by the state.

State regulators are taking a closer look at all EB-5 projects in Vermont in light of stronger federal requirements and increased use of the visa program by Vermont businesses.

Last summer Governor Peter Shumlin asked the Department of Financial Regulation to get involved in overseeing EB-5 projects in the state, said Pat Moulton, commissioner of the Agency of Commerce and Community Development (ACCD), on Monday.

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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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