Properties seized by the federal government last month should remain in the hands of a court-appointed receiver, SEC attorneys said, in order to protect the interests of 700 immigrant investors from 74 countries who were defrauded by Quiros as part of a massive “Ponzi-like” scheme in the Northeast Kingdom.
At a two day “cause” hearing in Miami, SEC lawyers detailed how Jay Peak developers Quiros and his partner Bill Stenger systematically defrauded investors.
Federal regulators interviewed expert witnesses who explained that the two men padded project budgets and used elaborate bank transfers to cover up the misappropriation of $200 million in EB-5 immigrant investor funds. Quiros was additionally charged with using $50 million for personal expenses.
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