According to a release published in April 2016, the Securities and Exchange Commission (SEC) has announced fraud charges and an asset freeze against a Vermont-based ski resort and associated businesses. According to the SEC, the businesses allegedly misused “millions of dollars raised through investments solicited under the EB-5 Immigrant Investor Program.”
The SEC named two businessmen, Ariel Quiros and William Stenger, who allegedly made false statements and omitted “key information” when they raised more than $350,000,000 to construct a ski resort and a biomedical research facility in Vermont. Investors were allegedly “told they were investing in one of several projects connected to Jay Peak Inc., a ski resort operated by Quiros and Stenger, and their money would only be used to finance that specific project.” According to the SEC, the funds were in fact used to “fund deficits in earlier projects,” in a scheme resembling a Ponzi scheme.
The SEC alleges that Mr. Quiros used investor monies to fund such projects as “a luxury condominium, payment of his income taxes and other taxes unrelated to the investments, and acquisition of an unrelated ski resort.”
Andrew Ceresny, Director of the SEC’s Division of Enforcement, said in a statement: “The alleged fraud ran the gamut from false statements to deceptive financial transactions to outright theft… As alleged in our complaint, the defendants diverted millions of EB-5 investor dollars to their own pockets, leaving little money for construction of the research facility investors were told would be built and thereby putting the investors’ funds and their immigration petitions in jeopardy.”
The SEC additionally charged Jay Peak and Quiros Resorts, a company owned by Mr. Quiros, in addition to seven limited partnerships and their general partner companies. These people and entities have been charged with violations of the Securities Acts of 1933 and 1934. The SEC is seeking preliminary and permanent injunctions, financial penalties, and disgorgement in the pending complaint.
If you have lost money investing with Ariel Quiros, William Stenger, Jay Peak, or their associated businesses, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be able to recoup your losses. All cases are taken on contingency, which means Fitapelli Kurta only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.