The Securities and Exchange Commission told a federal court judge on Friday that there is sufficient evidence to show Jay Peak owner Ariel Quiros violated securities laws, and there is a reasonable likelihood he will re-offend if he isn’t stopped by the court.
Quiros and his business partner, Bill Stenger, have been accused of misappropriating $200 million out of $350 million in EB-5 immigrant investor funds. The SEC presented several hundred exhibits in three days of court hearings earlier this month showing how Quiros allegedly moved money in more than 100 bank accounts and looted $55 million in investor funds to purchase two New York City condos and two ski resorts.
Judge Darrin Gayles is currently reviewing the SEC’s proposed preliminary injunction. If the judge accepts arguments made by federal regulators, Quiros would be barred from running the Jay Peak and Burke resorts. He would also be prohibited from selling securities, and his assets would remain largely frozen.
The SEC says Quiros is potentially liable for disgorgement of $191.8 million in “ill-gotten gains” from Jay Peak and AnC Bio Vermont development schemes. The federal regulators say Quiros’ lawyers have incorrectly claimed that the maximum disgorgement amount the federal government can seek is the more than $50 million he “personally pocketed.” The additional $141.8 million in fraudulent gains are broadly defined, according to the SEC, and include $106 million Quiros allegedly misused from AnC Bio Vermont and the Stateside projects, $20 million in contributions he failed to make for several Jay Peak developments and $15 million in interest.
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