State regulators have frozen the escrow account for the Q Burke Hotel until the developers explain what became of millions of dollars taken out of the project.
In a Feb. 16 letter to Q Burke General Partner Bill Stenger, Susan Donegan, commissioner of the Department of Financial Regulation, writes that project sponsors — Stenger and his partner Ariel Quiros — "have taken millions of dollars for construction management" from the project, yet have failed to show they paid for expenses they were obligated to cover. The state says it doesn't know where the money went.
Donegan ends her letter by stating: "There will be no further authorization of releases from the escrow account until you have addressed these questions satisfactorily."
Stenger said all of the money he and Quiros have taken from the project has been "put right back in."
"We're going to provide them with all the substantiation they want," Stenger said, referring to the state. "We're working on that. There's infrastructure, there's a host of things we've done."
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