Deposition details Jay Peak CEO Stenger’s role in alleged fraud
The CEO and president of Jay Peak is expected to reach a settlement with the Securities and Exchange Commission in the next few weeks, according to court filings.
If Bill Stenger makes a deal with federal regulators, the focus of the legal action in state and federal courts will shift away from his role in the EB-5 scandal and toward the alleged fraudulent activities of his partner, Miami businessman Ariel Quiros.
Much of what has been brought to light in the public record at the U.S. District Court in Miami has already focussed largely on accusations by the SEC against Quiros. That’s because the Miami businessman is fighting the SEC’s allegations. Stenger, on the other hand, has been cooperating with the SEC, and his involvement in the fraud has not been fully explained. He largely avoided the spotlight in federal district court when SEC litigators brought their case against the two Jay Peak developers in documents and hearings about the alleged misuse of immigrant investor money in six development projects at Jay Peak Resort and a biomedical center in Newport.
As general partner for the limited partnerships with immigrant investors, Stenger had a fiduciary duty to protect the interests of the investors, but a deposition with the SEC shows the Jay Peak CEO was directly involved in actions that put investor funds at risk.
Read more: http://vtdigger.org/2016/07/18/what-stenger-knew-when-deposition-details-his-role-in-alleged-fraud/