Federal regulators say that to protect assets and help investors recoup millions lost in Jay Peak developments, they won’t ask for any penalties against entities now overseen by a court-appointed receiver.
Attorneys for the U.S. Securities and Exchange Commission filed a notice last week dismissing its claims for disgorgement, prejudgment interest on disgorgement and civil penalties against a slew of corporate and relief defendants.
Those defendants were recipients of money raised through the EB-5 investment program, which Jay Peak owner Ariel Quiros and former president and CEO Bill Stenger used to pull in money for projects in the Northeast Kingdom.
“The Commission files this notice of dismissal because all of these entities are now under the control of the Court-appointed Receiver, who is marshaling their assets for the benefit of investors,” SEC attorney Robert K. Levenson wrote in the filing.
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