A federal judge unsealed an indictment Wednesday morning for criminal charges against four men involved in a visa-fraud scandal in the Northeast Kingdom: Ariel Quiros, former owner of Jay Peak Resort and Bill Stenger, former president of the resort; as well as William Kelly and Alex Choi, associates of Quiros'.

Vermont fraud scandal: Who are Ariel Quiros, Bill Stenger and other key players?

A grim-faced Stenger, well-known in Newport where he lives, arrived at the federal courthouse in Burlington just after 11 a.m., accompanied by his lawyers, Brooks McArthur and David Williams. Wearing a dark suit and blue shirt without a tie, Stenger was brought into the courtroom in handcuffs, which were removed just before he was seated.

Stenger, 70, sat hunched over next to McArthur before standing to hear the charges against him, which included wire fraud, concealing facts from investors and making false statements regarding AnC Bio, the biomedical facility that was supposed to be built in Newport using funds raised through the federal EB-5 program.

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Under the EB-5 program, foreign nationals who invest $500,000 in a project in an economically struggling region of the country can receive residency if the project creates a specified number of jobs. Stenger raised a total of about $400 million for projects at Jay Peak and Burke Mountain ski resorts from some 800 investors in countries from Brazil to South Africa to Vietnam and China.

Stenger was released on a $100,000 bond and was required to surrender his passport. He was given permission to continue to have contact with Michael Goldberg, the federal receiver in charge of Jay Peak, as long as he doesn't discuss the indictment with Goldberg. Stenger has been working for Goldberg as a consultant since the scandal broke in April 2016.

Quiros of Key Biscayne, Florida, was arraigned after Stenger, and also entered the courtroom in handcuffs, wearing a dark suit and a tie. He is accused of wire fraud, money laundering and making false statements to the federal executive branch, all related to the AnC biomedical project.

Quiros, 63, also pleaded not guilty to all charges and was released on $100,000 bond and ordered to surrender his passport.

At the end of the hearing, Quiros clapped lawyer Bob Katims on the back, pushed in the chairs where he and his legal team had been sitting, and walked out surrounded by reporters. He declined to comment.

Kelly of Weston, Florida, was arraigned earlier in the day and pleaded not guilty to charges that included lying to the government and wire fraud. Alex Choi did not appear and is at large, according to U.S. Attorney Christina Nolan, speaking at a press conference in Newport after the arraignments.

What was said outside of court?

Satnding in front of the Elmwood Avenue courthouse, lawyers for both Stenger and Quiros separately made brief statements.

Brooks McArthur, Stenger's attorney, said Stenger had dedicated his life to the improvement of the Northeast Kingdom and Vermont, and there is "the strongest possible denial that he engaged in any criminal activity at all."

Seth Levine, Quiros' attorney, made a brief statement, saying the case should never have been brought, and that the "whole story has not been told by the government."

"We look forward to the truth coming out, we look forward to Mr. Quiros' vindication," Levine said.

The criminal cases have been assigned for trial at federal court in Rutland under Judge Geoffrey Crawford.

Nolan, the U.S. attorney, said at the Newport press conference that the indictments were the beginning of a lengthy process.

"Vermonters are trusting people. They were understandably enthusiastic about the defendant’s promised job creation in this part of the state," Nolan said. "But the defendants engaged in deception, and promises were broken. It is wrong, and we hope the announcement of today’s grand jury indictment is a step toward righting that wrong."

Previous federal penalties against Vermont developers

Stenger and Quiros were accused by the U.S. Securities and Exchange Commission in April 2016 of perpetrating a "Ponzi-like" scheme in which they diverted money raised from the investors to a variety of shell companies and financial accounts. In the case of Quiros, the SEC alleged $50 million was diverted for his personal use.

Both men settled civil actions brought by the SEC and the state of Vermont, but the possibility of criminal charges has been hanging over them since 2016 when news of the alleged fraud broke. Quiros agreed to pay an $82 million penalty to the SEC, while Stenger paid a penalty of $75,000.

Quiros settled with the state for $2 million, satisfied by turning over five properties in and around Jay Peak. Those properties will be liquidated, and the money will be earmarked for economic development, attorney to Vermont Attorney General T.J. Donovan.

Stenger was ordered to pay the city of Newport $100,000, also earmarked for economic development.

Will defrauded investors get their money back?

Federal Receiver Michael Goldberg took over Jay Peak and Burke Mountain resorts as well as the property in Newport where Quiros and Stenger had promised to build a biomedical facility called AnC Bio, as well as hotels and other development downtown.

Goldberg put Jay Peak up for sale in January, enlisting Jeffrey Altman of Houlihan Lokey to help him with the sale. Altman, a New York-based investment banker, declined to say what price he believes the ski resort can command, but it would have to sell for some $250 million in order to repay the foreign investors who put their money into the resort.

Mike Krongel of Mirus Resort Advisors in Burlington, Massachusetts, said that under the best case scenario, using the conventional method for valuing a resort, Jay Peak would be worth somewhere between $60 million and $100 million.