Big Burke announcement

[BenedictGomez]

Also, Leahy's comments about EB-5 yesterday now fit perfectly into the definition of "loathsome disingenuous politician".

 

[River19]

I'm reading through the complaint now.

First interesting fact: It is alleged that over HALF of the money raised through EB-5 was inappropriately used.

Link please?

 

[sull1102]

VPR is covering this for the next few hours, just said they've actually moved some programming around so they can talk about all this, for anyone driving around the state like myself.

 

[VTKilarney]

Next interesting allegation is from paragraph 6 of the complaint:

"The most recent project,for which the Defendants continue to raise money from unwitting investors, purports to be for a nearby $110 million biomedical research center that the Defendants have operated as neaxly a complete fraud."

 

[BenedictGomez]

This is an emergency action the Commission is bringing to stop an ongoing, massive eight year fraudulent scheme in which the Miami owner and the chief executive of a Vermont ski resort have systematically looted more than $50 million. Quiros and William Stengex, the president and CEO of Jay Peak, are primarily responsible for the fraudulent scheme.

Looks like Stenger's going to jail too.

 

[VTKilarney]

Link please?

http://www.sec.gov/litigation/complaints/2016/comp-pr2016-69.pdf

 

[VTKilarney]

Remember yesterday when Ary said that the "truth would come out?" He was right!!!

 

[Sons of Thunder]

I wonder if this will have ramifications for the EB-5 program in general. People at Mt. Snow must be pissed to hear this news.

 

[nek_crumudgeon]

It's not implied, it's clear. Sorry for the bad pdf to html copy and paste job

As described below, Quiros improperly used approximately $7 million for a margin loan backed by investor rands to purchase Q Burke. Hesubsequently used approximately $18.2 million of Biomedical Phase VII investor funds as partof the $19 million pay off of this margin Loan. Without any legitimate basis, Q Burke receivedinvestors' proceeds emanating fi•orn the Defendalzts' securities fraud.

 

[BenedictGomez]

"The most recent project,for which the Defendants continue to raise money from unwitting investors, purports to be for a nearby $110 million biomedical research center that the Defendants have operated as neaxly a complete fraud."

Golly, I wonder who ever would have thought that a major biomedical plant in the middle of nowhere, ostensibly to create highly medically risky and scientifically speculative products that aren't even FDA approved, could have been anything less than totally plausible?

 

[thetrailboss]

Remember yesterday when Ary said that the "truth would come out?" He was right!!!

I'm sure that his Land Rover is compliments of EB-5 investors! What a joke! He can just leave the keys with the SEC folks at their new office in East Burke.

 

[VTKilarney]

Heading #6:
"THE DEFENDANTS FRAUDULENTLY USED INVESTOR FUNDS TO FINANCE QUIROS' PURCHASE OF JAY PEAK"

Jay Peak sold for $25.7 million.

As an aside, the federal government has the worst OCR for a PDF that I have ever seen!

 

[BenedictGomez]

Defendants routinely violated these provisions when they misused, misappropriated, and commingled investor funds from the different projects. Instead of using investor funds as described in the use of proceeds documents, the Defendants frequently had investor funds flowing in a circular and roundabout manner among various accounts and entities, which allowed them to misuse acid misappropriate investor funds.

Hence the many, many Q-LLC companies.

 

[VTKilarney]

Paragraph 136: Around April 2015, Quiros transferred approximately $10.7 million of Biomedical Phase VII investor funds as collateral for the personal line of credit, He subsequently used the line to pay approximately $6 million of his personal taxes (he funneled the payment through GSI), approximately $3.5 million to Stateside Phase VI construction vendors, and approximately $1.4 million of purported returns to investors in PhasesIII-VI.


Hmm... Weren't we just talking about how odd it was that GSI, LLC didn't start with a "Q" - and how that was a major red flag?

 

[BenedictGomez]

This BFP livestream is unbearable. Constantly buffering.

 

[from_the_NEK]

How long did these idiots think they could go on like this?

 

[from_the_NEK]

This BFP livestream is unbearable. Constantly buffering.

Go to WCAX


http://www.wcax.com/story/24396596/watch-live-coverage-onwcaxcom

 

[nek_crumudgeon]

Heh.

4. The Trump Place Luxury Condominium137. On April 12, 2013, Quiros transferred $3 million in Biomedical Phase VIIinvestor funds to GSI. Six weeks later, on May 30, 2013, he used $2.2 million of that money tobuy a luxury condominium at Trump Place in New York City.

 

[VTKilarney]

Paragraph 139: To attempt to cover up their extensive misappropriation and misuse of investor funds, the Biomedical Please VII Defendants have misrepresented to State of Vermont regulators how they have been spending investor funds.

 

[mbedle]

Back up a couple of minutes and that helps.