Tuesday, November 22, 2016

Judge Raps Quiros In EB-5 Case

A federal judge has issued a scathing ruling against Jay Peak developer Ariel Quiros, agreeing preliminarily with federal regulators that the Miami businessman was the mastermind behind the largest EB-5 fraud case in the country that played out in the mountains of northern Vermont. Judge Darrin P. Gayles, in a ruling handed down on Monday in federal court in Miami, froze the assets Quiros, the owner of Jay Peak, had accumulated through funds raised from EB-5 investors meant to pay for developments in northern Vermont. The judge also barred Quiros, a Miami businessman, from raising funds from the program.

Gayles agreed to the request for the injunction against Quiros from the U.S. Securities and Exchange Commission, and in a 44-page ruling, said the SEC wove “a compelling and well-documented account of one man’s use of his control over multiple entities to squander investor funds, enrich himself, and, ultimately, commit securities fraud.” “The record supports a preliminary finding that Quiros was the architect of a fraudulent scheme to use the investor fund to enrich himself,” Gayles wrote. See story here at Valley News.

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