Investor Alexandre Daccache filed the lawsuit in an attempt to recover the money "misused, commingled, and stolen by Quiros and Stenger with the assistance of Raymond James and Burstein" for all the investors, according to court documents. The lawsuit accuses the defendants of violating a federal racketeering law, or the RICO Act, which was designed to fight organized crime.
"The members of the RICO enterprise had a common purpose: to increase and maximize their profits by illegally diverting funds that they knew belonged to investors for improper and unauthorized purposes. Defendants shared the bounty of their enterprise by sharing the illegal profits generated by the joint scheme," Daccache's lawyer, Tucker Ronzetti, wrote in the complaint, filed Tuesday.
Last month, the Securities and Exchange Commission, along with the state of Vermont, accused Jay Peak developer Quiros and CEO Stenger of fraud related to the EB-5 program, which allows foreigners to gain U.S. residency if they invest $500,000 in projects in economically depressed areas. Burstein and Raymond James were not named as defendants in the SEC's case.
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