The federal receiver appointed to right the ships at Burke Mountain, Jay Peak and the other assets of Ariel Quiros is seeking federal court approval for the Management Agreement with the firm now operating the two resorts. The plan is that the firm will maintain the resorts until they can be sold.
Quiros faces federal securities fraud charges and similar fraud charges by the Vermont State’s Attorney’s office. His partner, Bill Stenger, likewise is implicated in the case, which alleges that the pair orchestrated a Ponzi-like scheme for eight years, defrauding hundreds of international investors and misappropriating more than $200 million of their money.
The EB-5 immigrant investment program was relied on to fuel the ambitious Northeast Kingdom Economic Development Initiative the pair embarked on in 2008; investors made $500,000 investments in exchange for permanent green cards once jobs were created by the projects promised by Quiros and Stenger.
Quiros is further charged by officials with skimming more than $50 million more off the investors’ money for personal use, including lavish spending that included the purchase of two New York City condos, one at Trump Place.
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