‘‘Since the SEC’s seizure of the Jay Peak-related EB-5 projects, investors have been rightly concerned about possible recovery of funds. This settlement contributes to their restitution.’’-Susan Donegan
A settlement was reached with the financial firm involved in the Jay Peak fraud scandal on Thursday. Vermont financial regulators found Raymond James and Associates‘ Miami branch failed to comply with supervisory requirements and Vermont law and were slapped with a $5.9 million settlement reports the bostonglobe.com.
Owners of Jay Peak and Burke Mountain, Ariel Quiros and Jay’s president, Bill Stenger were cited for using their accounts to transfer money earmarked for development among investors but both men maintain they have done nothing wrong and will eventually be exonerated.
Quiros and Stenger are accused of misusing $200 million of foreign investment through a special visa program. The EB-5 program allows investors permanent U.S. residency in exchange for financing projects that create a certain amount of jobs (which seems a bit crooked by itself).
The Department of Financial Regulation determined that $4.5 million will go a federal receiver to dole out to investors making claims, $1.25 million will go to Vermont’s general fund as administrative penalties, and $200,000 to reimburse the state for it’s investigation.
Find the entire Boston Globe article here: Vermont reaches $5.9m settlement in ski resort probe