Investment firm to pay $6M in Kingdom Con settlement
A settlement in connection with the Kingdom Con. Investment firm Raymond James will pay $6 million for violating Vermont securities laws.
This is the first settlement in connection with allegations of a Ponzi-like scheme involving the big development projects in the Northeast Kingdom.
Federal investigators accused Ariel Quiros and his partner Bill Stenger of misappropriating $200 million in money obtained through the EB-5 foreign investment program. Quiros allegedly took $50 million of that for his own personal use.
The EB-5 funds were managed by Raymond James and state regulators brought an enforcement action against the company for lax oversight of accounts.
"It represents an enforcement settlement that acknowledges there were some compliance problems in the way in which Raymond James allowed certain accounts associated with the Jay Peak situation to occur," said Susan Donegan, the commissioner of the Vt. Department of Financial Regulation.
Of the $6 million Raymond James is paying, $4.5 million will go to reimburse investors. The rest goes to the state.
Raymond James says it's pleased a settlement was reached.
The state and the SEC are still pursuing civil cases against Quiros and Stenger. And federal prosecutors are looking into possible criminal charges. Both Stenger and Quiros have said they expect to be cleared of any wrongdoing.
- State of Vermont vs Bill Stenger & Ariel Quiros
- UNITED STATES SECURITIES AND EXCHANGE COMMISSION vs Ariel Quiros & Bill Stenger
Subscribe for News
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.