That’s estimated to be quadruple what they were in the prior fiscal year, when Ariel Quiros and Bill Stenger were still in charge and about to face state and federal fraud allegations.
Miami federal court Judge Darrin Gayles gave preliminary approval to the settlement. If no one objects to the terms, the agreement will move forward.
The money from Raymond James and Associates Inc. will go to contractors who are still owed for work on Northeast Kingdom projects and investors who poured in millions.
Immigrant investors allege the Quebec company knowingly transferred money to Ariel Quiros for the purchase of Jay Peak Resort.
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.
One of the defendants, a longtime business associate of Quiros’ who runs an entity embroiled in the case, appears to be settling with the SEC.
A onetime 8 percent late payment penalty has been added to that bill, totaling $164,159.
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.
“It is expected that hundreds of young skiers will train and compete at Burke Mountain annually.”
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 money covers expenses incurred since Jay Peak and Burke Mountain went into receivership in April and include attorney, accounting and other professional fees.
The receiver blamed the shortfall on owner Ariel Quiros who he said “wrongfully diverted millions of dollars.”
Legal and accounting firms racked up the fees as part of stabilizing the Jay Peak and Burke Mountain resorts.
“Everything changed for everybody” in April with the filing of fraud lawsuits against the owner and CEO, says the new general manager. But the resort is heading into winter with strong bookings.