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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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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In boys hockey: Falcons fall to Lakers

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The Falcons Henry Delabruere absorbs a hard check from Lakers defender Curtis Lehouiller Saturday night.  Photos by David Dudley

The Falcons Henry Delabruere absorbs a hard check from Lakers defender Curtis Lehouiller Saturday night. Photos by David Dudley

copyright the Chronicle January 28, 2015

by David Dudley

JAY PEAK — The North Country Union High School Falcons fell to the Colchester Lakers Saturday, 6-1. Though the game began as a back and forth battle between two evenly matched teams, the Falcons faced an unfortunate stretch in the second period.

“Before the game, we talked about getting the puck deep and making smart plays,” Lakers Coach Greg Murray said. “We wanted to get an extra deek in. Get the puck in the zone, get shots to the net. Score ugly.”

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Peggy Loux is a woman with a purpose

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Peggy Loux received the Agency on Aging Community Service Award on Monday.  Photo by David Dudley

Peggy Loux received the Agency on Aging Community Service Award on Monday. Photo by David Dudley

copyright the Chronicle November 19, 2014

by David Dudley

JAY — Margaret “Peggy” Loux, who is now serving her fifth year on the Jay Select Board, received the Agency on Aging Community Service Award Monday.

According to Ms. Loux, everybody has got to work, and everybody has got to have a purpose. What is Peggy Loux’s purpose?

Though her various activities would suggest otherwise, she claims to be a shy person.

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