NEWPORT, A Florida man was sentenced to 18 months in federal prison for his role in a scheme that defrauded immigrant investors in a never-built biotechnology facility in Newport.
William Kelly, 73, of Fort Lauderdale, pleaded guilty in June 2021 to wire fraud conspiracy and concealing material facts from U.S. Citizenship and Immigration Services (USCIS). He was also ordered to pay $8,338,600 in restitution.
Kelly was a co-conspirator with Ariel Quiros, Jong Weon (Alex) Choi, and William Stenger in the AnC Vermont project, which aimed to raise $110 million from 220 EB-5 immigrant investors to build and operate a biotech plant. The EB-5 program offers green cards to foreigners who invest $500,000 in U.S. ventures that create at least ten jobs.
From 2012 to 2016, about 169 investors poured in roughly $85 million, plus $8 million in administrative fees. The facility was never built.
Court records show Kelly helped mislead investors about how funds would be used, job creation projections, and timelines. He admitted that the jobs report relied on unrealistic financial projections by Kelly, Choi, and Stenger, with no assessment of their reasonableness. Meanwhile, no progress was made toward finding customers, acquiring viable stem cell products, or developing artificial organs.
Kelly also admitted helping Quiros and Stenger divert over $47 million of investor money to Jay Construction Management (JCM), a Quiros-controlled entity. Quiros used about $21 million of that to pay off a personal loan unrelated to AnC Vermont. Kelly helped conceal that misuse.
As part of his plea, Kelly agreed to cooperate with prosecutors. Co-defendant Quiros pleaded guilty in August 2020 and awaits sentencing. Stenger got 18 months and $250,000 restitution. Choi remains at large.
Photo: KATRIN BOLOVTSOVA via Pexels. Photo is illustrative and not from the scene.
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