Plaintiffs argue that Saint-Sauveur was aware that Quiros was using the investors’ money improperly.
The lawsuit alleges: “People’s Bank was a substantial and active participant in a massive fraud that caused millions of dollars in damages.”
As the Vermont EB-5 Regional Center is threatened with closure, officials at the Dover resort hope to solicit foreign investments before the end of the year through their own program.
Former lawyers for Jay Peak owner Ariel Quiros are trying to collect $3 million in unpaid legal fees, but his current lawyer and the court-appointed receiver overseeing Quiros’ frozen assets are saying not so fast.
The Stowe resident seeks $2 million in damages for breach of contract, consumer fraud and breach of fiduciary duty.
Paying property taxes and other expenses will preserve the value of assets for the benefit of investors if the SEC wins its case, according to a court filing.
Sen. Patrick Leahy, D-Vt., says he has no misgivings about Vermont’s EB-5 program. “I have no regrets in seeing a lot of jobs brought to the Northeast Kingdom,” he said.
On this week’s podcast, VTDigger Editor Anne Galloway joins WDEV’s Mike Smith to talk about two new developments in the Jay Peak EB-5 case.
The move came shortly after Quiros’ former legal team sought to stall the agreement. Those lawyers want $3 million they say the developer owes them.
On ProPublica’s latest podcast, VTDigger’s Anne Galloway discusses her investigation into the multimillion-dollar Northeast Kingdom development that she thought was “too good to be true.”
With two projects funded by foreign investment underway, the Dover resort is looking next at a major housing upgrade. But it’s unclear how the troubled EB-5 program might figure into it.
The two sides will try to negotiate how much, if anything, Quiros will pay in disgorgement of any ill-gotten gains, interest and penalties. He isn’t admitting or denying the charges.
U.S. Citizenship and Immigration Service says the state “failed to properly engage in management, monitoring and oversight of the program for many years.”
The investors have until Aug. 31 to decide to either get back their $500,000 investment in AnC Bio Vermont, or put the money toward another project EB-5 project approved by a court.