Crime

Quiros gets 5 years for EB-5 fraud

Ariel Quiros, 65, of Puerto Rico, and formerly of Key Biscayne, Florida, was sentenced Friday to 60 months in prison by Chief Judge Geoffrey W. Crawford in United States District Court in connection with his involvement in the AnC Vermont EB-5 investment project.

Photo credit VTBiz.com

Chief Judge Crawford also ordered Quiros to serve a three-year term of supervised release and to pay $8,338,600.77 in restitution. Today’s sentencing follows Quiros’s guilty pleas in August 2020 to three felony charges: conspiring with co-defendants William Kelly, Jong Weon (Alex) Choi, and William Stenger in a multi-year wire fraud scheme to defraud immigrant investors seeking green cards through the EB-5 program; money laundering for using a loan collateralized with investor funds to pay a personal tax obligation; and concealing material facts in a matter within the jurisdiction of a federal agency, namely United States Citizenship and Immigration Services (USCIS), which oversaw the EB-5 process.

According to court records and proceedings, the AnC Vermont project was designed to raise $110 million from 220 immigrant investors in order to construct and operate a biotechnology facility in Newport. From 2012 to 2016, the defendants convinced approximately 169 investors to invest approximately $85 million in the AnC Vermont project, in addition to paying approximately $8 million in “administrative fees.” The facility was never constructed. As Chief Judge Crawford observed during Stenger’s sentencing hearing, in reality the AnC Vermont project was a “ghost.”

When Quiros pleaded guilty, he admitted that he and his co-conspirators misled AnC investors about important information, including how investor money would be used, the timing of job creation for the project, and Choi’s role in the project.

For example, Quiros knew that investors were given a use-of-funds chart that contained a number of misrepresentations about the amount of funds Quiros and Choi planned to receive. Moreover, as the defendants raised investor money, Quiros used investor funds for purposes unrelated to the project, and he participated in concealing this misuse of funds. Quiros further admitted that the scheme included misrepresentations about the timing of the jobs that would be created by the project and the business revenue that would be generated from the project.

In addition to the wire fraud conspiracy charges, Quiros admitted using AnC investor funds for personal expenses, specifically a $6 million payment to the IRS in early 2015 funded by a loan collateralized by investor funds. Quiros also admitted helping to conceal from the Vermont Regional Center that Choi, who was deeply involved in the project, was being investigated in Korea for financial crimes.

As part of his plea agreement, Quiros agreed to cooperate in the government’s ongoing matters related to this case. The plea agreement signed by Quiros and the government capped Quiros’s potential jail sentence at 97 months, so long as he abided by the terms of the agreement. In connection with Quiros’s sentencing proceeding, the government informed the Court that Quiros should receive significant credit for his cooperation and would be an important witness at any trial of his co-defendants.

Quiros’s sentencing concludes the criminal proceedings for all three of the defendants who have appeared in this matter. Co-defendants Stenger and Kelly were each sentenced to 18 months’ imprisonment by Chief Judge Crawford earlier this month. Co-defendant Choi remains at large.

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3 replies »

  1. Several politicians and bureaucrats were involved, like Sen. Leahy and former Gov. Shumlin. Some state records relating to this episode seem to be missing. Note the light sentences for a $200 million fraud. The outstanding “cooperation” mentioned at Mr. Quiros’ sentencing apparently didn’t result in any further indictments, so what was it? Pay attention to see if any of these gentlemen file motions a few months down the road for sentence reductions based on some kind of procedural error. Perhaps more evidence that the fix was in?

  2. Considering Quiros signed a “cooperation agreement,” who else is facing charges where the Fed needs his cooperation? Foreign investors buying citizenship for millions of dollars? Where did all the money go and to whom? The contractors were not paid until bankruptcy court stepped in. What other deals for other “projects” never completed? The cases pending of the foreign investors looking to get their money back must have some damning evidence on their side. RICO charges pending against the State and Federal bureaucrats/representatives?

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