Ariel Quiros’ legal bills are mounting, prompting him to mortgage his New York City condo and ask a federal judge to allow the use of those funds to help pay his attorneys who are owed more than $1 million.
“Mr. Quiros’s attorneys have not yet been paid for any of the work they performed in April, May, June, July, or August 2016,” Scott Cosgrove, a lawyer for Quiros, wrote in a motion filed this week in a federal case alleging his client committed investor fraud in a series of Vermont projects.
In May, federal Judge Darrin Gayles approved Quiros getting $15,000 in monthly expenses, paid by the Jay Peak receivership. Also, Qurios was allowed to sell or mortgage the condo to cover “reasonable” legal fees and living expenses.
In August, Cosgrove wrote in this week’s motion, Quiros completed the mortgage of the condominium, and wired more than $1 million from the transaction to the receiver appointed by the federal judge to oversee the properties at the center of the fraud allegations.
Quiros is now asking the judge to allow him to use those funds to pay his legal bills.
Attorneys in the federal lawsuit for theU.S. Securities and Exchange Commissionhave previously opposed Quiros using funds from the condo’s sale or mortgage going to help pay for his defense team, arguing the luxury residence was purchased with proceeds from the alleged fraud.