The Latest: Allegations resort partners mishandled millions

MONTPELIER, Vt. – The Latest on charges by the SEC and Vermont that ski resort partners mishandled millions (all times local):

2:20 p.m.

Vermont Gov. Peter Shumlin says it’s a dark day for Vermont and people are feeling betrayed after the Securities and Exchange Commission and state filed separate civil fraud lawsuits against two men who have been working to develop the economically depressed Northeast Kingdom.

A federal receiver has been appointed to run the Jay Peak and Q Burke resort while the cases against Bill Stenger and Ariel Quiros move forward.

Shumlin says he doesn’t expect “significant job losses,” but plans for a biotechnology plant and downtown renovation in Newport are unlikely to go forward.

Stenger and Quiros are alleged to have misused more than $200 million in funds raised from foreign investors.

The suits allege Quiros misappropriated an additional $50 million for his own personal use.

A call to the Jay Peak media office was not returned.

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1:23 p.m.

The Securities and Exchange Commission and the state of Vermont are charging the principals of a northern Vermont ski resort with misusing more than $200 million in funds raised from foreign investors for development projects in the Northeast Kingdom.

Both the SEC and Gov. Peter Shumlin announced Thursday that they had simultaneously filed civil actions against Ariel Quiros and Bill Stenger, owners of Jay Peak.

The state alleges the fraud dates to 2008.

In addition to the $200 million in investor funds intended for development projects, the suits allege Quiros misappropriated an additional $50 million for his own personal use.

The SEC said that “in Ponzi-like fashion” money from investors in later projects was used to fund deficits in earlier projects.