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TexasTowelie

(116,808 posts) Sat Sep 23, 2017, 04:18 AM Sep 2017

EB-5 investors: Don't toss case against ex-Jay Peak owner

Last edited Sat Sep 23, 2017, 05:16 AM - Edit history (1)

Three EB-5 investors are challenging a bid to throw out a lawsuit brought against a Canadian company they say “aided and abetted” an alleged fraud scheme at Jay Peak Resort.

Saint-Sauveur Valley Resorts Inc. asked a judge to dismiss the case in July.

The plaintiffs in the case claim the company knowingly accepted $15 million in EB-5 funds from Miami businessman Ariel Quiros to buy Jay Peak in 2008.

Quiros’ purchase of Jay Peak from Saint-Sauveur is at the center of an alleged $400 million Ponzi scheme. Federal regulators say Quiros used money from EB-5 investors to buy the resort from Saint-Sauveur, in violation of investor agreements in which money was to be held in escrow for construction of two hotels at the resort. Plaintiffs argue that Saint-Sauveur was aware that Quiros was using the investors’ money improperly.

Read more: https://vtdigger.org/2017/09/21/eb-5-investors-dont-toss-case-ex-jay-peak-owner/#.WcYeXsZrzRY

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EB-5 investors: Don't toss case against ex-Jay Peak owner (Original Post) TexasTowelie Sep 2017 OP

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TexasTowelie

(116,808 posts)

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Sat Sep 23, 2017, 05:18 AM

Sep 2017

EB-5 fraud lawsuit against Vermont heads to court

The question of whether Vermont government leaders were complicit in the massive Jay Peak Resort fraud case moves for the first time to a courtroom next week.

A number of foreign investors are suing the state for damages related to what they call failed oversight, collusion with Jay Peak management and an eventual cover-up by the officials who were charged with keeping tabs on a project that turned into a Ponzi scheme.

Monday morning in Vermont Superior Court in Hyde Park, lawyers for the investors and from the Attorney General's Office are expected to argue chiefly about whether the government should be immune from the lawsuit, whether the case should be dismissed outright, and whether the investors are entitled to dig into state records to search for evidence, said Russ Barr, a Stowe attorney who represents the investors.

"This is a state agency that was set up by a few folks to operate as a Wall Street brokerage house, and it clearly has imploded," Barr told the Burlington Free Press this week. "That is not a traditional government function, and they should not be immune from suit."

More at: http://www.burlingtonfreepress.com/story/news/2017/09/22/eb-5-fraud-lawsuit-against-vermont-heads-court/690810001/

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