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.
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.”
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.
The Vermont Attorney General will file a motion to dismiss in September.
“Since the outset of this case, Quiros has not assisted and is not currently assisting the receiver … in building any case against third parties,” according to court filings.
The $1.35 million will cover six months’ worth of expenses for the court-appointed receiver overseeing the properties at the heart of the alleged “Ponzi-like” scheme.
In dueling court filings, the two sides disagree over what arguments Ariel Quiros should be allowed to raise to allegations he defrauded foreign investors.