The Securities and Exchange Commission has asked a federal judge to deny a request to lift a hold on the assets of Ariel Quiros who was accused last month of defrauding hundreds of immigrant investors.
Federal regulators on April 12 froze all of Quiros’ assets when they filed allegations that the Miami businessman misappropriated $200 million out of $350 million in investor funds in “a Ponzi-like” scheme. The SEC says Quiros lied to hundreds of unsuspecting investors in the Jay Peak EB-5 projects and put $50 million into his own pocket.
“Now, the immigration status and investments of hundreds of investors are at risk, there are severe shortages in the last two projects, and Quiros has nowhere close to the amount of frozen assets needed to repay his equitable liabilities,” regulators wrote in a filing submitted to U.S. District Court in Miami Friday.
Quiros asked Judge Darrin Gayles to lift the freeze altogether, originally claiming that he needed $87,000 a month for living expenses and more than $225,000 a month for professional expenses.
Gayles allowed the release of $41,000 last month.
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