The State of Vermont Reaches A $5.9 Million Settlement In Jay Peak Probe

According to a Vermont press release, the state has reached a $5.9 million settlement with a financial firm related to the fraud investigation of real estate developments at Jay Peak and Burke Mountain. The Department of Financial Regulation found that Raymond James and Associates’ Miami branch failed to comply numerous times with supervisory requirements and Vermont law. Miami businessman Ariel Quiros, owner of Burke Mountain and Jay Peak ski resorts, and Bill Stenger, Jay Peak’s president, were specifically cited by the department for transferring funds within investors, limited partnerships, and other parties.

The state of Vermont and the Securities and Exchange Commission have accused the men of misusing about $200 million from foreign investors through a special visa program.  The EB-5 program allows permanent U.S. residency for those who finance projects that create a certain amount of jobs. The $5.9 million settlement will be divided, $4.5 million will go to the federal receiver overseeing the resorts and projects to reimburse possible claims by investors, $1.25 million will go to Vermont’s general fund as an administrative penalty, and $200,000 will be paid to state financial regulation for the investigation.

‘‘Since the SEC’s seizure of the Jay Peak-related EB-5 projects, investors have been rightly concerned about possible recovery of funds. This settlement contributes to their restitution,’’ department commissioner Susan Donegan said.