Four men face 20 years in prison and at least a $250,000 fine for wire fraud. The United States Attorney for the District of Vermont says that two residents from Florida, Ariel Quiros, aged 63, and William Kelly, aged 70; a resident of Vermont, William Stenger, aged 70; along with South Korea native Jong Weon Choi (Alex), aged 58, were charged in connection with a wire fraud scheme that spanned several years.
The targets were immigrant investors looking to invest in an EB-5 project to obtain green cards from the management firm of Jay Peak Biomedical Research Park. Other charges besides wire fraud included money laundering, concealing facts, embezzlement, and giving false statements regarding EB-5 projects to the United States Citizenship and Immigration Services.
The men allegedly collected tens of millions of dollars from unsuspecting foreigners wanting to invest in US businesses, which would create jobs for Americans. In order to obtain a green card, each person must invest at least $1.8 million in an American company. The defendants in the case are accused of misspending the money and making false statements to the investors. An IRS investigation led to the discovery of the misappropriation of funds and supposed fraud.
Lawyers say the charges against the men cover transactions made from 2011-2016. The defendants told investors they planned on raising $110 million in an effort to build a proposed biotechnology company, creating several jobs in Vermont. Quiros, who was a secret partner in the company, is charged with embezzling millions and using it for his own purposes, such as paying off a personal loan in the amount of $21 million, instead of putting the money toward the project proposed. The other owners of the company knew about this but did not report it. Allegedly, they covered up the mismanagement of money, for which they have been charged.
The defendants were also charged with creating a fraudulent business plan, dishonestly reporting about the number of jobs the business would create, as well as the revenue it would bring into the community. The group gave the impression that the company would rent clean rooms, market stem cell therapies, and manufacture artificial organs.
At the same time, Choi was under Korean investigation for additional crimes dealing with finances. While the other three defendants have turned themselves in to US Marshalls, the whereabouts of Choi are still unknown.
Not all criminal defense lawyers are alike. If you or someone you love has been contacted by the federal government in relation to an investigation or are facing charges like wire fraud, money laundering, or false statements, our Burlington criminal defense attorneys are here to help. Contact us today for a consultation.
