Bill Stenger, one of two partners in an alleged fraud of foreign investors in Northeast Kingdom development projects, has settled with the federal Securities and Exchange Commission, according to court documents.
Stenger, the former president of the Jay Peak resort, did not admit or deny any wrongdoing. Documents filed in federal court in Miami say he will cooperate with the SEC.
Stenger and his business partner, Ariel Quiros, were charged in federal and state court in April of misappropriating $200 million from investors who participated in the federal EB-5 program. The federal fraud case continues against Quiros.
Under the EB-5 program, investors who put in a minimum $500,000 can get a fast track to legal residency in the U.S. if their investments generate jobs.
Michael Pieciak, the commissioner of the state Department of Financial regulation, has worked closely with federal investigators. He says the SEC settlement is "bifurcated" -- meaning it's split into two parts. The first part bars Stenger for life from participating in or soliciting investors for EB-5 projects.
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