$150-Million EB-5 Settlement Reached
A settlement of about $150-million in the alleged EB-5 Foreign Investor program fraud case in the Northeast Kingdom has been reached. Federal Receiver Michael Goldberg made the announcement Thursday and said that the money will be used to pay all contractors, vendors, and investors, and to finish projects, including building a recreation center at Jay Peak Resort. A Federal judge must first approve the settlement, which is expected to occur in the coming weeks with payment to follow. The agreement announced Thursday is for $145.5 million. Raymond James, Inc settled with Vermont regulators for $4.5 million last year.
Thursday’s settlement was reached exactly one year after the allegation of a $200-million ponzi-like scheme, orchestrated by the resort's owner, Ariel Quiros of Miami, and former president Bill Stenger, was announced by Federal authorities.
Raymond James and Associates Inc. is a securities broker-dealer firm based in Florida that allegedly facilitated the financial transactions in the alleged fraud, which at the time was run by Quiros’ former son-in-law.(Read more Friday in the Express)