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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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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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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