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Stenger and Quiros Ousted from Management of Jay Peak and Burke

thetrailboss

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For those not following the Burke thread, we now know that yesterday federal officials from the SEC paid a visit to Burke Mountain, seized information, changed the locks on the buildings, and began an investigation onsite into alleged mismanagement of EB-5 funds for the QHotel project.

WCAX is now reporting that as part of that investigation that Messrs. Stenger and Quiros have been relieved of their management authority for both Jay and Burke and that an independent resort and hotel management company are now in control of the operations, pending the outcome of the federal investigations.

http://www.wcax.com/story/31723261/outside-company-managing-jay-peak-q-burke

This is just surreal.
 

sull1102

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WHAT! I thought Magic was a mess, my god. So does Jay get a new owner for next season I wonder?
 

drjeff

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WHAT! I thought Magic was a mess, my god. So does Jay get a new owner for next season I wonder?


Agree! Prior to this I wasn't sure whether Magic's or Burke's management was the bigger display of incompetence in the VT Ski Industry. Burke just took a BIG lead in that display of incompetence!!
 

wa-loaf

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Agree! Prior to this I wasn't sure whether Magic's or Burke's management was the bigger display of incompetence in the VT Ski Industry. Burke just took a BIG lead in that display of incompetence!!

I don't think it's who's more incompetent, but who had more money to be incompetent with ...
 

sull1102

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Magic is just incompetent, these guys seem very, very competent in what they're doing, just so happens what they're doing is a crime.

Does Jay stay open late like they usually do with this whole mess or just shut it down and go on life support?
 

HowieT2

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Magic is just incompetent, these guys seem very, very competent in what they're doing, just so happens what they're doing is a crime.

Does Jay stay open late like they usually do with this whole mess or just shut it down and go on life support?

Agreed. This goes beyond incompetence.
 

thetrailboss

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This just went to a whole other level:

SEC Case Freezes Assets of Ski Resort Steeped in Fraudulent EB-5 Offerings
FOR IMMEDIATE RELEASE
2016-69
Washington D.C., April 14, 2016 — The Securities and Exchange Commission today announced fraud charges and an asset freeze against a Vermont-based ski resort and related businesses allegedly misusing millions of dollars raised through investments solicited under the EB-5 Immigrant Investor Program. The SEC’s case was unsealed today in federal court in Miami, and the court has appointed a receiver over the companies to prevent any further spending of investor assets.
The SEC alleges that Ariel Quiros of Miami, William Stenger of Newport, Vt., and their companies made false statements and omitted key information while raising more than $350 million from investors to construct ski resort facilities and a biomedical research facility in Vermont. Investors were told they were investing in one of several projects connected to Jay Peak Inc., a ski resort operated by Quiros and Stenger, and their money would only be used to finance that specific project. Instead, in Ponzi-like fashion, money from investors in later projects was misappropriated to fund deficits in earlier projects. More than $200 million was allegedly used for other-than-stated purposes, including $50 million spent on Quiros’s personal expenses and in other ways never disclosed to investors.

According to the SEC’s complaint, Quiros improperly tapped investor funds for such things as the purchase of a luxury condominium, payment of his income taxes and other taxes unrelated to the investments, and acquisition of an unrelated ski resort.

“The alleged fraud ran the gamut from false statements to deceptive financial transactions to outright theft,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement. “As alleged in our complaint, the defendants diverted millions of EB-5 investor dollars to their own pockets, leaving little money for construction of the research facility investors were told would be built and thereby putting the investors’ funds and their immigration petitions in jeopardy.”

The SEC’s complaint charges Quiros, Stenger, Jay Peak, and a company owned by Quiros called Q Resorts Inc. as well as seven limited partnerships and their general partner companies with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Four other companies are named as relief defendants in the SEC’s complaint for the purpose of recovering investor funds transferred into their accounts. The SEC seeks preliminary and permanent injunctions, financial penalties, and disgorgement of ill-gotten gains plus interest. The agency also seeks conduct-based injunctive relief against Quiros and Stenger along with an officer-and-director bar against Quiros.

The SEC’s investigation was conducted by Brian Theophilus James, Trisha D. Sindler, Michelle Lama, and Mark Dee, and the case was supervised by Chedly C. Dumornay of the Miami Regional Office. The SEC’s litigation will be led by Christopher Martin and Robert K. Levenson of the Miami office. The SEC appreciates the assistance of the Office of the Vermont Attorney General and other authorities in Vermont.
 

drjeff

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Can't wait to see how PeakCM is involved here

Directly, probably none whatsoever as they are 2 completely separate EB-5 projects where the fund raising occurred at completely different times AND none of the EB-5 money that Peak raised has been released from escrow thus far.

Indirectly, the already delayed release of the EB-5 money that they have in escrow because of delays from the INS verifying the VISA's associated with the EB-5 investors, will likely be delayed further because the the creation of greater levels of oversight to make sure that those investment EB-5 funds are going exactly where they should be

My guess is that today's culmination of the Stenger/Quiros EB-5 investigation will likely remove the chance that Peak gets their EB-5 funds released anywhere in the near future and as such they (Peak) won't be able to complete the West Lake Snowmaking project and start the new base lodge at Carinthia this summer as planned
 

trackbiker

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Directly, probably none whatsoever as they are 2 completely separate EB-5 projects where the fund raising occurred at completely different times AND none of the EB-5 money that Peak raised has been released from escrow thus far.

Indirectly, the already delayed release of the EB-5 money that they have in escrow because of delays from the INS verifying the VISA's associated with the EB-5 investors, will likely be delayed further because the the creation of greater levels of oversight to make sure that those investment EB-5 funds are going exactly where they should be

My guess is that today's culmination of the Stenger/Quiros EB-5 investigation will likely remove the chance that Peak gets their EB-5 funds released anywhere in the near future and as such they (Peak) won't be able to complete the West Lake Snowmaking project and start the new base lodge at Carinthia this summer as planned

Me thinks you have your "Peaks" confused. PeakCM vs. Peak Resorts.
 

Sons of Thunder

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Directly, probably none whatsoever as they are 2 completely separate EB-5 projects where the fund raising occurred at completely different times AND none of the EB-5 money that Peak raised has been released from escrow thus far.

Indirectly, the already delayed release of the EB-5 money that they have in escrow because of delays from the INS verifying the VISA's associated with the EB-5 investors, will likely be delayed further because the the creation of greater levels of oversight to make sure that those investment EB-5 funds are going exactly where they should be

My guess is that today's culmination of the Stenger/Quiros EB-5 investigation will likely remove the chance that Peak gets their EB-5 funds released anywhere in the near future and as such they (Peak) won't be able to complete the West Lake Snowmaking project and start the new base lodge at Carinthia this summer as planned

I think he's referring to the general contractor that built the hotel, PeakCM, which has done all the work for Jay/Q in recent years.

But as I mentioned in the Big Burke thread, Peak (Mt. Snow) people must be so pissed right now. Those funds are going to be in escrow for a loong time.
 

amf

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Interesting. Always wondered about the Q in Q-Burke. When I was up at Jay this year I notice two mug shots of Quiros and Stenger behind the front desk at one of the hotels. I thought at the time that Quiros made Putin look like a slacker - now I know. Stenger just looked like his eager lap dog. Lotsa bad blood going down with those deals.
 

halfpintvt

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WANTED, FOR SECURITY FRAUD!

 

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MG Skier

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First hand, I really like skiing and staying at Jay. I have only skied Burke once (When it was Burke circa 2006).

Boom, S.E.C.

I hope the Burke issues are resolved. I'm not sure we will ever see a West Bowl at Jay. I just wanted the terrain.
 

BenedictGomez

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I'm not sure we will ever see a West Bowl at Jay.


I'm filing for EB-5 money for that, and I only need one $500,000 EB-5 VISA.

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