William Stenger, 73, of Newport, was sentenced April 14 to 18 months in federal prison for his role in the AnC Vermont EB-5 fraud case. He also received three years of supervised release and was ordered to pay $250,000 in restitution.
Stenger pleaded guilty to a single felony count of knowingly submitting false documents to the Vermont Regional Center in January 2015. The AnC Vermont project aimed to raise $110 million from 220 immigrant investors to build a biotechnology facility in Newport. Investors could qualify for permanent residency by investing $500,000 and showing the investment would create at least 10 jobs each.
From 2012 to 2016, about 169 investors put in roughly $85 million, plus about $8 million in administrative fees. The facility was never built and fundraising stalled. Stenger admitted he submitted false financial projections and misleading information about FDA approvals to keep marketing the project, despite agreeing to suspend offerings in June 2014.
Prosecutors said Stenger knew about and assisted in the misuse of investor funds, along with co-defendants Ariel Quiros and William Kelly. Stenger, as general partner, bore significant responsibility for covering up financial troubles from regulators and investors.
Kelly pleaded guilty in July 2021 and will be sentenced April 20. Quiros pleaded guilty in August 2020 and will be sentenced April 29. A fourth co-defendant, Choi, remains at large.
Originally reported by Newport Dispatch.
Photo: Thirdman via Pexels. Photo is illustrative and not from the scene.
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