The federal receiver for Jay Peak and Burke Mountain resorts filed a motion this week in U.S. District Court asking that nearly $18 million in escrowed funds be returned to investors in the AnC Bio research project.
In the 191-page filing, federal receiver Michael Goldberg asked that the funds be returned because the project, which authorities have deemed a nearly complete fraud, will never be realized in the wake of an alleged Ponzi-like scheme in the Northeast Kingdom.
Authorities from the federal Securities and Exchange Commission and the Vermont Attorney General in April brought forward allegations that Ariel Quiros Sr., the owner of the projects under the Northeast Kingdom Economic Development Initiative, and his former business partner, Bill Stenger, had allegedly misappropriated more than $200 million in immigrant investor funds. Quiros was further charged with taking another $55 million plus of investor funds for personal use.
Stenger has reached a settlement with the SEC and is cooperating against his former partner. Quiros is expected to stand trial in U.S. District Court in Miami later this year.
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