Memos from Douglas’ commerce agency reveal mostly positive views about the massive expansion of Jay Peak and other projects. “Looking back, more (oversight) would have been better,” he says in hindsight.
The latest judgments are against a slew of corporate and relief entities. The latter received “ill-gotten gains” but didn’t necessarily take actions that led to the SEC’s fraud allegations.
The lead plaintiff in the case is Alexander Daccache, of Brazil. More than 800 others could become eligible to join the suit against developers Ariel Quiros and Bill Stenger.
Contractors who have not been paid in more than a year are barely hanging on.
The CEO of a Korean firm was charged with embezzlement when he ran a related company in Vermont.
Bill Stenger denies wrongdoing and points the finger of blame at Ariel Quiros, Jay Peak’s owner.
The move was needed after NBT Bank said it wouldn’t renew a letter of credit following investor fraud lawsuits filed against Jay Peak owner Ariel Quiros and Bill Stenger, its former CEO.
A lawyer argues that holding off on a separate lawsuit while the Securities and Exchange Commission case proceeds would hinder efforts to recoup money for investors.
The judge didn’t buy claims that the state had overreached with its investor fraud allegations and that all the projects Quiros and his partner promised to build were either complete or under construction.
The money covers expenses incurred since Jay Peak and Burke Mountain went into receivership in April and include attorney, accounting and other professional fees.
Sen. Patrick Leahy voted against the extension, which was attached to a spending bill, because, he says, the program needs either a major overhaul or termination. Some investors in Northeast Kingdom projects remain in limbo.
A financial firm that was used by fraud suspect Ariel Quiros says releasing the records to investors suing him would be an unreasonable invasion of privacy.
The Jay Peak owner faces a potential $1 billion in losses under the fraud allegations against him unless the insurance company puts up the money for his defense, his lawyer says.
A management company running the resort and hotel, which was completed just a month before its owners were charged with investment fraud, is hoping for a robust season with increased skier visits.