A new lawsuit claims the former owner of Jay Peak Resort knowingly participated in fraud when a Miami businessman bought the property in 2008.
The U.S. government has said the businessman, Ariel Qurios, purchased Jay Peak for $25.7 million by raiding EB-5 foreign investment funds that were supposed to be dedicated to new projects at the Northeast Kingdom resort. Federal and state officials allege that Quiros went on to defraud foreign investors through a "Ponzi-like" scheme at seven EB-5 projects at and around Jay Peak.
The federal EB-5 program offers a path to citizenship for foreign nationals who invest $500,000 in projects in the United States that create jobs.
The federal allegations against Quiros are moving toward trial. His business partner, Bill Stenger, has agreed to settle the federal government's civil case, but state claims are continuing against both men.
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