State, SEC reveal complaints: Quiros, Stenger 'looted' $50 million

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State, SEC reveal complaints: Quiros, Stenger 'looted' $50 million

Thu, 04/14/2016 - 4:59pm -- tim

Jay Peak CEO Bill Stenger speaks at the AnC Bio groundbreaking last May. Ariel Quiros is to the far left. Vermont Business Magazine photo.

Vermont Business Magazine Calling it a "Ponzi-like" scheme, the US Securities and Exchange Commission, in a filing in US District Court, Southern District of Florida unsealed a blistering civil suit against the owners Jay Peak Resort and Q Burke Resort about noon today. The case was filed April 12. In part it says (see document below) that, "This is an emergency action the Commission is bringing to stop an ongoing, massive eight-year fraudulent scheme in which the Miami owner (Ariel Quiros) and the chief executive of a Vermont ski resort (Bill Stenger) have systematically looted more then $50 million of the more than $350 million that has been raised from hundreds of foreign investors throught the US Citizenship and Immigration Service's EB-5 Immigrant Investor Program.

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The State of Vermont today, through Susan L Donegan, Commissioner of the Vermont Department of Financial Regulation, and Attorney General William H Sorrell, filed a Complaint in Vermont Superior Court, Washington Unit, Civil Division, against Ariel Quiros, William Stenger and various Jay Peak related corporate and partnership entities. The State's Complaint alleges violations of the anti-fraud provisions of the Vermont Uniform Securities Act and the unfair and deceptive practices provisions of the Vermont Consumer Protection Act. The Complaint seeks to protect the interests of current and future investors, and requests injunctive relief, appointment of a receiver, civil penalties, restitution, disgorgement, costs, and other appropriate relief.

Click on documents below to see the two reports.