Allegations That Resort Partners Mishandled Millions
The Securities and Exchange Commission and the state of Vermont have filed separate civil fraud lawsuits against two men who have been working to develop the economically depressed Northeast Kingdom.
A federal receiver has been appointed to run the Jay Peak and Q Burke resort while the cases against Bill Stenger and Ariel Quiros move forward.
Governor Peter Shumlin says he doesn't expect "significant job losses," but plans for a biotechnology plant and downtown renovation in Newport are unlikely to go forward.
Stenger and Quiros are alleged to have misused more than $200 million in funds raised from foreign investors.
The suits allege Quiros misappropriated an additional $50 million for his own personal use.
The state alleges the fraud dates to 2008.
The SEC said that "in Ponzi-like fashion" money from investors in later projects was used to fund deficits in earlier projects.
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