by Timothy McQuiston Vermont Business Magazine Jay Peak CEO Bill Stenger has entered into a settlement agreement that would resolve the Securities & Exchange Commission civil suit against him. Stenger and Jay Peak and Burke Mountain Resort owner Ariel Quiros were charged by the SEC and state regulators with fraud last April, involving the EB-5 foreign investor projects at the two resorts and at the proposed AnC Bio facility in Newport. However, the agreement does not necessarily let Stenger avoid possible SEC penalties involved in the case, nor does it necessarily forgo possible criminal prosecution, as US Attorney Eric Miller is separately looking into the cases against Stenger and Quiros.
Quiros also is facing rigorous pursuit by the SEC in federal court in Florida for the alleged fraud involving personal use of EB-5 funds. The court has also frozen substantial assets in Quiros' possession. Some of those assets are being used by federal receiver Michael Goldberg, who is now running the two resorts, to keep the operations running. The federal complaint maintains that some $200 million was misused.
Stenger, who is still working at the resort, neither admits nor denies the allegations against him. The settlement states that he cannot contest the findings of facts in the consent agreement not can he appeal the judgment.
He sent a statement to the media Thursday evening indicating that he has entered into a settlement agreement with the SEC, that he is fully cooperating with them and that he can say no more about the matter.
Stenger's statement and the settlement filing with the court are below.
