Stenger settlement in the works

Stenger settlement in the works

EB-5 Visa, EB5 Visa, EB-5 Investment

One of the men at the center of an ongoing EB-5 fraud Investigation tells Channel 3 he's entered into a settlement with the feds.

Two men and hundreds of millions of dollars in alleged fraud. Developers Arial Quiros and Bill Stenger are accused of a Ponzi-like scheme that allegedly prayed on foreign investors tied to projects across the Northeast Kingdom.

"The financial impact of it is potentially huge because if in fact the allegations are true then it raises serious questions about the ability of Jay Peak to continue," said legal analyst, Jerry O'Neill.

On Thursday, one of the men, former Jay Peak President Bill Stenger, told Channel 3 he had agreed to a settlement with the Securities and Exchange Commission that, "sets up a framework to fully resolve the case the SEC filed against (him)." 

O'Neill said this announcement "means they have not fully reached where they need to be but from the sound of it, it appears that he has agreed to cooperate with the SEC and I would read into that, his cooperation will make what happens with him going forward in the future significant, because if he cooperates, the SEC is more likely to go easy with him."EB-5 Visa, EB5 Visa, EB-5 Investment

 

Channel 3 went digging through the SEC complaint in the spring that said, in part, both men were "fully aware" that information they had provided in connection to proposed ANC Bio research facility in Newport was "patently false"

Stenger's statement Thursday goes on to say, "I have not admitted nor have I denied the allegations of the Amended Complaint." 

His potential deal with the SEC only involves the civil complaint that includes Jay Peak and Burke Mountain. He is still under a criminal investigation by the U.S. Attorney for Vermont. 

"If he is resolving matters with the SEC and that's the frame where he's got going, it is likely the US Attorney is looking at him in a favorable light," said O'Neill.

So could this mean Stenger is turning on business partner Arial Quiros? 

"What it means is that he is looking out for his own best interest, and that may well involve turning on Mr. Quiros," said O'Neill.

This does not address Stenger's partner, Ariel Quiros, who is also under investigation by federal and state officials.

EB-5 Visa, EB5 Visa, EB-5 Investment


http://www.wcax.com/story/32968802/stenger-settlement-in-the-works

Mentions

Litigation Cases

States

  • Vermont


Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.