Federal receiver settles for $ 32.5 million from law firm
Federal receiver in charge of Jay Peak, Michael Goldberg, has reached a $ 32.5 million deal with the law firm that provided legal advice to Ariel Quiros and the EB-5 projects in the Northern Kingdom. Is.
Vermont Department of Financial Regulation Commissioner Michael Pieciak said on Friday that $ 20 million from the settlement will go directly to foreign investors who have fallen victim to one of the biggest frauds in EB-5 history. at Jay Peak. Pieciak led the state’s investigation into the fraud.
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The EB-5 program gives foreign nationals a path to citizenship in return for investing $ 500,000 in development projects in economically disadvantaged areas of the country such as the Northeast Kingdom, where Jay Peak is located.
Quiros pleaded guilty to multiple federal criminal charges, admitted that he used EB-5 funds to pay for personal expenses, and misled investors into a Ponzi scheme. Quiros’ partner Bill Stenger has pleaded not guilty and must stand trial. In April 2016, a federal court appointed a receiver, Michael Goldberg, to manage Jay Peak.
After: A ski resort, a dream and a greed: How a $ 350 million fraud happened in Vermont’s poorest region
Pieciak said $ 9.4 million from the settlement with Mitchell, Silberberg & Knupp LLP will be held by the receivership of Jay Peak and Burke Mountain stations, which have been particularly affected by the COVID-19 pandemic as it prevented Canadian skiers to visit the resorts. The balance of the settlement will go towards attorneys’ fees and other expenses, according to Pieciak.
No admission of wrongdoing, but the regulations “speak for themselves”
Mitchell, Silberberg & Knupp has offices in Los Angeles, New York and Washington, DC Pieciak said that although the law firm did not admit wrongdoing in the fraud, the dollar amount of the settlement “speaks of himself”.
“That would suggest the legal advice wasn’t the most professional, if you will,” Pieciak said of the $ 32.5 million payment.
The Miami federal judge who oversaw Jay Peak’s federal receivership has yet to approve the settlement. Pieciak expects the settlement to be approved.
“Mike Goldberg is in good contact with the judge,” Pieciak said. “(The judge) understands things to come. (Goldberg) never surprises the judge.”
Contact Dan D’Ambrosio at 660-1841 or [email protected] Follow him on Twitter @DanDambrosioVT. This coverage is only possible with the support of our readers.
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