Weston man pleads guilty in Vermont Jay Peak EB-5 biomedical research case

William Kelly faces a sentence of up to three years

Miami /
Jun.June 07, 2021 06:02 PM
(Getty)

(Getty)

A Weston man pleaded guilty for his role in an EB-5 investment case that alleges his co-conspirator siphoned money from a Vermont biomedical research project that never got off the ground.

William Kelly, 72, pleaded guilty to two counts, one for conspiracy to commit wire fraud and another for concealment of material information. He agreed to cooperate in the investigation, according to a U.S. Justice Department news release.

Kelly, who entered his plea in front of Chief Judge Geoffrey Crawford in Rutland, Vermont last week, faces a sentence of up to three years.

Kelly’s attorney, Robert Goldstein in Boston, declined comment.

The Jay Peak Biomedical Research Park in Newport, also called AnC Vermont, had raised $84.5 million from 169 foreigners from 2012 to 2016. Investors ponied up another $8 million for administrative fees.

EB-5 allows foreigners a path to a green card if they invest in a venture that creates a certain number of jobs. Although the ante was increased in 2019, Jay Peak investors were working under the previous regulation that required $500,000 and at least 10 jobs per investor.

The venture was to have three lines of business: clean room rentals as well as stem cell product and artificial organ sales. But instead, about $21 million was diverted for unrelated expenses, according to the Justice Department.

Kelly admitted that he concealed from the Vermont regional EB-5 center that Ariel Quiros, another South Floridian charged in the case who has pleaded guilty, rerouted the money, the Justice Department said. Kelly also admitted that he, along with other co-conspirators, misled investors about how their funds would be used, as well as the number and timeline of jobs to be created.

Kelly and the others involved continued to maintain that the necessary number of jobs would arise from the venture, even though the project was not securing customers, the Justice Department said.

Kelly’s sentencing date is yet to be scheduled, with prosecutors pushing for a delay pending his cooperation. They also will not recommend a fine or forfeiture, but will seek a restitution order for investors.

Quiros, of Key Biscayne, pleaded guilty to wire fraud conspiracy, money laundering, and concealment charges in August 2020. He is awaiting sentencing.

His attorney, Neil Taylor in Coral Gables, said Quiros is doing “whatever he can to make amends for his involvement.”

“Mr. Quiros was the first one to step up and take complete responsibility for what happened,” Taylor said. “He continues to cooperate with the federal government.”

A third defendant has pleaded not guilty and is to go to trial in October, and a fourth defendant is at large, according to the release.

The foursome originally were charged in May 2019. The case is one of a few alleged Jay Peak EB-5 frauds. The Securities and Exchange Commission in 2016 alleged a “Ponzi-like” scheme involving a Northern Vermont ski resort. That case is considered the biggest alleged EB-5 fraud in history.





    Related Articles

    arrow_forward_ios
    Ofizzina office tower in Coral Gables (TSG)
    Lease roundup: Consulate General of Barbados, NY investment firm moving to Ofizzina in Coral Gables
    Lease roundup: Consulate General of Barbados, NY investment firm moving to Ofizzina in Coral Gables
    The Surfside collapse condo site at 8777 Collins Avenue (Getty)
    Surfside bidder gets extension for due diligence, pushing auction to April
    Surfside bidder gets extension for due diligence, pushing auction to April
    From left: Pedro Villar, owner of Aloft Miami Brickell, along with his attorney Joe Pack (Newstar Media)
    Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
    Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
    One Bal Harbour at 10295 Collins Avenue in Bal Harbour, FL (Seaside Properties Group, iStock/Illustration by Steven Dilakian for The Real Deal)
    One Bal Harbour associations settle suit over shared utility, valet expenses
    One Bal Harbour associations settle suit over shared utility, valet expenses
    Bo Boulenger, president and CEO of Baptist Health South Florida and renderings of the planned hospital at 12401 W. Oakland Park Blvd. (Baptist Health South Florida)
    Baptist Health beats out rival bid for Sunrise site of its first hospital in Broward
    Baptist Health beats out rival bid for Sunrise site of its first hospital in Broward
    From left: Jorge Perez, chairman and CEO, Related Group; Gil Dezer, president, Dezer Development (Getty Images, Related Group, LoopNet)
    Related Group, Dezer win approval for 10-story oceanfront condo project in Hillsboro Beach
    Related Group, Dezer win approval for 10-story oceanfront condo project in Hillsboro Beach
    RFR Holding's Aby Rosen (Getty), East End Capital's Jonathon Yormak (East End Capital) and 100 Biscayne Boulevard (iStock)
    Aby Rosen’s RFR buys 100 Biscayne office tower in downtown Miami for about $90M: sources
    Aby Rosen’s RFR buys 100 Biscayne office tower in downtown Miami for about $90M: sources
    (iStock)
    The lowdown on South Florida’s high end
    The lowdown on South Florida’s high end
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...