Articles Tagged with investment fraud

The Securities and Exchange Commission has filed fraud charges in Federal Court in Miami, Florida against the owners and operators of Jay Peak Resort, a Vermont-based ski resort, and related businesses. The complaint alleges that millions of dollars were raised under the EB-5 Immigrant Investor Program.

According to the tramcomplaint, the main perpetrators were Ariel Quiros of Miami, and William Stenger of Newport, Vt., who raised in excess of $350 million from foreign investors on promises of green cards and returns on their invested monies. The money was to be used to construct ski resort facilities and a bio-medical research facility in Vermont.

The perpetrators promised that investor money would only be used to finance specific projects, but instead it is alleged that over $200 million was used for other purposes, $50 million of which Quiros used for personal expenses, including the purchase of a luxury condominium, income tax payments, and the acquisition of another Vermont ski resort, Burke Mountain, which he renamed Q Burke Mountain, and turned over to his son to manage.

 

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September 24, 2014 – Fidelity Bank in Fitchburg, Massachusetts, has agreed to pay  $3.5 million dollars to the Massachusetts Secretary of State’s Office to settle claims that it allegedly allowed TelexFree Inc. to open bank accounts, without properly screening the company.  TelexFree was an alleged investment fraud, which purported to sell discount, long-distance phone plans.  The company was operated by Massachusetts residents James Merrill and Carlos Wanzeler and primarily solicited Brazilian and Dominican immigrants by selling “accounts” for about $1,400 and paying investors $100 per week to assist with marketing the company.  TelexFree raised over $900 million from thousands of investors.  The company was started in Brazil and had its U.S. headquarters in Marlborough.

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