According to the Associated Press, Ariel Quiros has been sentenced to at least 8 years in federal prison after pleading guilty to fraud. The AP describes the case as “the largest fraud in Vermont’s history”.
Quiros is charged with enticing investors to fund a biotech plant that was to be built in Newport, VT. Millions of dollars were from foreign investors with the promise of American citizenship under the EB-5 Visa program.
Turns out that Quiros was using investor’s money to fund his lavish lifestyle. Quiros and his partners were forced to surrender more than $80 million in assets to the SEC, including Jay Peak and Burke Mountain Resort.
It’s estimated that Quiros and his conspirators misused $200 million of the $400 million they raised from 800 investors.
This indictment has been a long time coming. We posted first about the Jay Peak “Ponzi-scheme” back in 2016.
There’s nothing like a good-ol’-fashioned Ponzi Scheme to shake-up the ski industry. We hope that the investors continue to be re-compensated, and that the people of Newport, VT can begin to move on from this chapter.