Federal regulators suing Ariel Quiros say he is “quickly squandering” funds from investors he allegedly defrauded by asking a judge to allow him to unfreeze assets to pay “outlandishly high” legal fees in the civil fraud case brought against him.
“Quiros is requesting more than $1.5 million to pay his attorneys’ fees and costs from April through August 2016,” Christopher Martin, a lawyer representing the U.S. Securities and Exchange Commission, wrote in a motion filed late this week in federal court in Miami.
“At that rate, Quiros will be seeking $3.6 million annually for attorneys’ fees and costs, plus an
additional $180,000 for living expenses,” Martin wrote. “Not only is this burn rate excessive, it also greatly exceeds the amount Quiros received for mortgaging the Setai Condominium.”
The SEC filed its lawsuit in April against Quiros, a Miami businessman, and William Stenger of Newport, alleging the two developers headed the largest fraud case in the state’s history through a “Ponzi-like” investment scheme.
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