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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Lawyers for Stenger tell state to bring it on

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copyright the Chronicle October 19, 2016

by Joseph Gresser

NEWPORT — Lawyers for Bill Stenger have told the state to bring it on. In a September 7 filing in the Civil Division of Washington County Superior Court, they denied all the fraud charges related to EB-5 visa funded projects sponsored by Jay Peak and have demanded a jury trial.

Mr. Stenger recently settled similar charges levied against him by the federal Securities and Exchange Commission (SEC). In the settlement, Mr. Stenger did not admit or deny the charges against him, but he agreed to accept whatever penalties U.S. District Judge Darrin Gayles may decide to assess.

Mr. Stenger also promised that he would not say anything that contradicted the SEC charges.

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Potential Jay Peak buyer accused of fraud

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copyright the Chronicle September 21, 2016 

by Joseph Gresser

JAY PEAK — When Michael Goldberg got a letter offering to buy Jay Peak for $93-million some aspects of it set off alarms. His suspicions proved to be justified when a quick search showed that the man who made the offer has been accused of a $3-million stock swindle.

Mr. Goldberg explained his concerns about the offer from Jean Joseph of Bellwether Business Group and his follow-up correspondence in a report filed September 16 in U.S. District Court for the Southern District of Florida in Miami.

Mr. Goldberg said the original offer was unusually vague, and didn’t fully specify what the purchaser wanted to get for his money. In addition, the due diligence list, setting out the kind of information about Jay Peak the potential purchaser hoped to get before finalizing the deal, included a number of items that were not applicable to a ski area.

The timeframe for completing the sale proposed by Mr. Joseph also appeared impossibly short, Mr. Goldberg said.

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Stenger settles, no longer works at Jay

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copyright the Chronicle September 7, 2016

by Joseph Gresser

Bill Stenger, the former president of Jay Peak Resort, is no longer a defendant in the civil lawsuit filed by the federal Securities and Exchange Commission (SEC) against him and the owner of the resort, Ariel Quiros. Mr. Stenger is also no longer employed by Jay Peak.

After several months of negotiations, Mr. Stenger reached an agreement with SEC lawyers under which he will be liable to whatever penalties U.S. District Judge Darrin Gayles might impose for securities fraud. Although Mr. Stenger neither admitted nor denied the charges filed against him, he will allow himself to be treated as if he were guilty of the charges for purposes of punishment.

As part of the settlement, Mr. Stenger is permanently barred from participating in any way in selling securities connected to the EB-5 visa program or having any control over a business that does.

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Bill Stenger still on the payroll at Jay Peak — for now

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copyright the Chronicle August 24, 2016

by Joseph Gresser

JAY — For more than 30 years visitors to Jay Peak Resort had a hard time avoiding the ski area’s general manager, later president, Bill Stenger. They might find him parking cars, selling lift tickets, or clearing tables in one of the area’s restaurants.

One might think that would have changed since he and Jay Peak’s owner Ariel Quiros were accused of investment fraud in civil complaints filed by the federal Securities and Exchange Commission (SEC) and the state’s Department of Financial Regulation (DFR).

That would be a mistake.

Mr. Stenger is as visible as ever. He’s still working for Jay Peak, albeit in a very different role, that of assisting court-appointed receiver Michael Goldberg as he tries to keep Jay Peak and Burke Mountain resorts running while legal proceedings are underway.

He has the same office that he occupied when he was president of the resort, the same e-mail addresses, and phone numbers. He even drives the same Audi he has driven for the past six years, complete with a Jay Peak vanity plate.

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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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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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