The project is part of the biggest alleged fraud case in the state’s history, involving state and federal lawsuits claiming developers William Stenger and Ariel Quiros misused $200 million in funds raised through a foreign investor visa program.
Michael Goldberg, the court-appointed receiver, oversees the properties subject to the fraud allegations.
He filed a motion earlier this month in U.S. District Court in South Florida asking a federal judge for a writ of attachment on the site of the former Bogner plant in Newport, the location of the project known as AnC Bio Vermont.
“The Receiver is not waiving any rights by agreeing to this procedure, but rather it preserves the status quo,” Goldberg wrote in the motion.
Judge Darrin P. Gayles approved the request on Friday.
PeakCM, the project’s general contractor, is seeking $2,170,649 for work on the project, including $278,750 owed to six subcontractors, according to a court filing.
Sandy Fead, PeakCM’s attorney, said the action streamlines the process so entities with claims don’t have to submit filings in the Florida court individually.
“The receiver agreed to process them in bulk,” Fead said.
Fead said construction work PeakCM is seeking payment for included the demolition of a portion of a building at the site and filling in the hole that left behind.
In addition, Fead said, other “infrastructure improvements” included work associated with bringing water, sewer and electric to the site, construction of an entry drive and parking area, as well as stormwater treatment upgrades.
In the federal lawsuit filed in April, regulators have called Quiros’ and Stenger’s proposed $110 million biomedical center project in Newport “nearly a complete fraud.”
Goldberg filed similar requests for writ of attachments for other projects involved in the alleged fraud case, included Burke Mountain Hotel in East Burke.
The judge Friday agreed to modify an order he issued in June approving the request regarding Burke Mountain Resort. The latest order adds another company to that writ of attachment.
Goldberg wrote in a motion filed earlier this month that he had contacted by counsel for Trane US Inc., a company that provided heating and air conditioning equipment to another company who did work on the hotel project in East Burke.
According to Trane’s attorney, Goldberg wrote, the company is owed $110,455 for the labor and materials it provided.
In that project, Goldberg wrote in his request for the attachment in June that PeakCM, the general contractor, was due $3,919,903, including $3,688,121 owed to subcontractors.
In both the AnC Bio and Burke Mountain Hotel court orders, PeakCM and the subcontractors reserve their rights to claim and seek additional amounts that may be owed for interest, penalties, attorney’s fees or damages, according to the orders signed by the judge.
In addition, Goldberg reserves right to challenges to the claims.
