Rarely if ever do you hear about ski resorts getting in trouble with the federal government in cases of fraud but that’s all changing thanks to the owners of Jay Peak Resort.
In a press release published by the United States Securities and Exchange Commission, Jay Peak will have its assets frozen after “misusing millions of dollars raised through investments solicited under the EB-5 Immigrant Investor Program.”
What that means in this case is that Ariel Quiros of Miami, William Stenger of Newport, Vt, as well as their companies (including Jay Peak) mislead foreign investors into covering deficits from previous investments gone bad.
“Investors were told they were investing in one of several projects connected to Jay Peak Inc., a ski resort operated by Quiros and Stenger, and their money would only be used to finance that specific project. Instead, in Ponzi-like fashion, money from investors in later projects was misappropriated to fund deficits in earlier projects. More than $200 million was allegedly used for other-than-stated purposes, including $50 million spent on Quiros’s personal expenses and in other ways never disclosed to investors.” – SEC Press Release
According to The Director of the SEC’s Division of Enformcement, Andrew Ceresney, “The alleged fraud ran the gamut from false statements to deceptive financial transactions to outright theft.”
How exactly these findings by the SEC will affect Jay Peak operations for the remainder of the ski season has yet to be seen. Unofficial Networks will keep you updated with any and all relevant information as it comes forward.
Find the entire SEC press release here: SEC Case Freezes Assets of Ski Resort Steeped in Fraudulent EB-5 Offerings