Proposed settlement for Quiros in Kingdom Con case

 Ariel Quiros
Ariel Quiros (WCAX)
Published: Nov. 22, 2017 at 1:25 PM EST
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There is a proposed settlement for the man at the center of the Kingdom Con. Jay Peak owner Ariel Quiros has been the focus of a federal lawsuit. Now, we're learning there could soon be a resolution. Word of a settlement came in court documents filed last week in federal court. But there are still a number of steps before anything is official. That means it could be months before we learn the terms of the deal.

The man accused of misusing over $200 million in EB-5 foreign investments could walk away from a federal lawsuit without facing a trial. Now, over a year after that suit was filed by the U.S. Securities and Exchange Commission against Ariel Quiros, its attorneys say: "…the Commission staff and Defendant Ariel Quiros have reached agreement on a proposed settlement of the remaining issues in this action that requires approval by the SEC Commissioners. If the Commissioners approve Quiros' signed settlement agreement, it will end the litigation against Quiros."

"We've been in communication with them about their proposed settlement and are familiar with the details," said Mike Pieciak, the commissioner of the Vermont Department of Financial Regulation.

The state of Vermont is also suing Quiros.

"In our complaint, we allege that he stole approximately $50 million-$60 million, so you want to see that is accounted for," Pieciak said.

While Pieciak wouldn't comment on specifics related to the federal settlement, he says, in general, they bring a faster resolution, use up fewer resources and come with a guaranteed outcome.

"Although we think we have a strong case, you don't know what would happen if it went to a hearing or to trial. So here, you would have certainty on both sides," Pieciak said.

The SEC settled a separate case with Quiros' partner, Jay Peak President Bill Stenger, last year. A state civil case against him is also still pending and both continue to be under the microscope of criminal investigations.

"What we can accomplish on the civil side is financial accountability," Pieciak said.

The SEC has up to 90 days to sign off on the deal. Then it must be approved by a judge.

We reached out to Quiros' attorney, as well as lawyers representing the Securities and Exchange Commission. None of them returned our requests for comment before this story was published.