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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