Raymond James agrees to $150-million settlement

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copyright the Chronicle April 19, 2017

 

by Joseph Gresser

 

A year and a day after the federal and state governments filed civil charges connected with Jay Peak’s EB-5 projects, the receiver in the case announced a settlement intended to pay money owed to contractors and return the money invested in some failed enterprises.

Michael Goldberg, who was appointed to oversee businesses and other assets owned by Ariel Quiros, appeared at a press conference April 13 in Montpelier with Governor Phil Scott to announce an agreement with Raymond James & Associates, Inc., that could be worth as much as $150-million.

The same day, Raymond James posted the text of the settlement reached with Mr. Goldberg in a filing with the SEC. As a publically traded company, the financial services firm is required to disclose events, such as legal settlements, that may affect its business prospects.

Although it agreed to pay, Raymond James did not admit any wrongdoing.

According to the settlement documents, the company and the receiver have been discussing a settlement since last summer. Last June the Vermont branch of Raymond James reached a $5.95-million settlement with the state. That money will be subtracted from the $150-million the national firm is to pay out.

In a telephone interview Tuesday, Mr. Goldberg said he is pleased with the settlement, but said it had taken a lot of hard work to come to terms.

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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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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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