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Jay Peak Litigation

Carlson & Associates, P.A. currently represents 31 investors in a case against Raymond James & Associates, Inc., Joel Burstein, and Ariel Quiros alleging violations of the law relating to fraud, breach of fiduciary duty, conversion and negligence. The case was filed in the U.S. District Court for the Southern District of Florida in Miami in November of 2016. (Click here to see pertinent pleadings in the case.)

This situation arose out of an allegedly fraudulent scheme in which Jay Peak is reported to have misused more than $200 million obtained from investors intended to fund construction of a Vermont ski resort and a Vermont biomedical facility.

Talk to a Investment Fraud Attorney

If you have invested in Jay Peak and believe you may have been provided false or misleading information we may be able to help. Contact Carlson & Associates, P.A. for a free case consultation at 305-372-9700 or by filling out our contact form.

Jay Peak Information

Jay Peak is a Vermont ski resort that is owned by Q Resorts, Inc., a company controlled by Miami businessman Ariel Quiros. Since 2006, Jay Peak raised $350 million in investor funds through the offer and sale of limited partnership interests. Jay Peak raised the money from 700 investors from at least 74 countries around the world through the EB-5 immigrant investor program, which gives foreign investors the chance to earn permanent residence in the United States if they invest in U.S. projects that create a defined number of jobs.

The investments were supposed to fund construction of facilities around a Vermont ski resort along with a Vermont biomedical facility. Jay Peak advertised the investments through promoters, on the Internet, immigration attorneys and via overseas marketing presentations.

The bulk of the money Jay Peak raised did not go to construction of the Vermont facilities. Instead it was allocated among several of Jay Peak’s affiliates and related entities, allegedly to hide the fact that the Vermont construction projects were either experiencing shortfalls or over budget.

It is reported that $50 million was misused by Quiros to:

  • fund the initial purchase of Jay Peak
  • purchase a luxury condominium
  • pay his income taxes
  • buy an unrelated resort
  • pay off loans, among other things

As a result of the misuse of investor funds, Jay Peak reportedly does not have the funding needed to complete construction of the ski resort or the biomedical research facility. Investors are in danger of losing their investments and having their immigration petitions denied.

The SEC has Filed a Lawsuit

On April 12, 2016, the Securities and Exchange Commission filed a lawsuit naming Quiros, Jay Peak, Inc., and fourteen of Jay Peak’s affiliates or related entities. The SEC alleges that defendants’ solicitation and misuse of investor funds constitutes violations of both the Securities and Exchange Act. Among other things, the SEC alleges that, in soliciting investments, the defendants made false statements that they would use investor funds for construction, when in fact they used the funds for other undisclosed purposes.

Jay Peak Resources:
Jay Peak Receivership
Jay Peak Resort
Forbes Article on Jay Peak Litigation
Jay Peak Forum by VTDigger
Bill Stenger out at Jay Peak

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