Montpelier
The proposed settlement with Ariel Quiros must be approved by a court.
Quiros was accused of misusing more than $50 million from more than 700 foreigner investors through a special visa program to buy a ski resort and to pay for personal expenses like two luxury condominiums in New York City, the SEC said. Companies he owned allegedly failed to contribute about $30 million in investor money toward construction of projects at Jay Peak resort, the SEC said. The settlement includes a $1 million penalty.
Quiros and Stenger were accused in 2016 of misusing more than $200 million raised from foreign investors through the federal EB-5 visa program, which can lead to permanent U.S. residency for those who finance projects that create a certain amount of jobs.
Quiros has agreed to give up ownership of Jay Peak and Burke Mountain resorts and his stake in more than a dozen properties, including the two condos.
“We’re very pleased to be another step closer to resolving all of the claims against Mr. Quiros,” said Quiros’ attorney, Melissa Visconti.
His business associate at the time, William Stenger, of Newport, Vt., the former president of Jay Peak, has agreed to pay a $75,000 penalty. He was not alleged to have personally profited from the fraud, the SEC said.
Quiros and Stenger did not admit to or deny the complaint’s allegations.
“In pursuing fraudulent actors, we seek not only to hold wrongdoers accountable, but also to return as much money as possible to victims,” said Eric Bustillo, director of the SEC’s Miami regional office. “This settlement achieves both objectives by stripping Quiros of the proceeds of his fraudulent scheme and requiring him to turn over valuable property for the benefit of harmed investors.”
Quiros faces other claims from investors, the state of Vermont, and the federal receiver overseeing the ski resorts.
Governor Phil Scott and Attorney General TJ Donovan issued a joint statement on Friday and expressed their appreciation for the SEC’s work to pursue investigations and enforcement actions against Jay Peak, Quiros and Stenger, according to a news release.
“There are positive outcomes from the SEC settlement, including that it will provide federal receiver Michael Goldberg with legal title to the Jay Peak Resort, Burke Mountain Resort and various other real properties previously acquired by defendant Ariel Quiros, allegedly, with investor money. Receiving legal title of the resort properties enables Mr. Goldberg to move forward with a sale to a permanent owner, which will be beneficial for the region.
They continued: “However, more must be done to seek justice for Vermonters and the communities that have been harmed. The State’s separate civil enforcement case continues against Ariel Quiros and Bill Stenger for alleged violations of Vermont law and we remain committed to pursuing it, seeking maximum financial justice for Vermonters.”
The U.S. Attorney’s Office has said there is an ongoing federal criminal investigation, according to the statement.