Raymond James Firm to Pay $145.5 Million to Settle Vermont EB-5 Suit
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A $145.5 million settlement with the financial services firm Raymond James & Associates will allow scores of Vermont contractors and foreign investors to be paid for losses related to Northeast Kingdom EB-5 development projects, officials announced Thursday evening.
The announcement came a year after federal and state prosecutors levied fraud charges against Jay Peak developers Ariel Quiros and Bill Stenger, alleging they misappropriated $200 million raised through the federal EB-5 immigrant investment program.
“What a difference a year makes,” said Michael Goldberg, the federally appointed receiver who has been managing the Jay Peak and Burke Mountain ski resorts since shortly after news of the scandal broke.
Goldberg reached the settlement with Raymond James after accusing the firm of helping Quiros mix investments and defraud investors. By agreeing to the settlement, which is subject to approval by a federal judge in Miami, Raymond James is not admitting any wrongdoing, Goldberg said.
“They stepped up to the plate. They faced their responsibilities,” Goldberg said. The $145.5 million comes on top of a previous $4.5 million settlement Raymond James reached with the state last year.