NEWPORT, William Kelly, 72, of Weston, Florida, pleaded guilty in federal court to two felonies related to the Jay Peak Biomedical Research Park EB-5 investment project, also known as the AnC Vermont project.
Kelly admitted to conspiring with Ariel Quiros, Jong Weon (Alex) Choi, and William Stenger in a wire fraud scheme that misled immigrant investors who put money into the project in hopes of obtaining green cards. He also pleaded guilty to concealing material facts from a federal agency.
From 2012 to 2016, about 169 investors poured approximately $85 million into the AnC Vermont project, plus $8 million in administrative fees. The project was supposed to raise $110 million from 220 investors to build and run a biotechnology facility. Under the EB-5 program, investors could qualify for green cards by investing $500,000 and showing the investment would create at least 10 jobs.
During the plea hearing, Kelly acknowledged that he and his co-conspirators misled investors about how funds would be used, job creation numbers, and the project timeline. The job creation projections relied on three business lines: cleanroom rentals, sales of stem cell products, and artificial organs. Kelly admitted that between 2012 and 2016, no progress was made in securing customers or developing those products, yet the job numbers were maintained.
Kelly also admitted helping Quiros and Stenger funnel more than $47 million in investor money to Jay Construction Management, a Quiros-controlled entity. Of that, less than $6 million reached AnC Biopharma, a company created by Choi to hide his legal and financial troubles. Quiros used about $21 million to pay off a Raymond James loan unrelated to the project.
Under the plea deal, Kelly agreed to cooperate with ongoing investigations. His sentence is capped at 36 months if he abides by the agreement. The government will not seek a fine or forfeiture but will ask for restitution. Sentencing is delayed pending his cooperation.
Co-defendant Quiros pleaded guilty in August 2020 and awaits sentencing. Stenger has pleaded not guilty, with trial scheduled for October 2021. Choi remains at large.
NEK will be looking into what Kelly's cooperation may reveal about the broader handling of EB-5 funds and the state's oversight of the regional center.
Originally reported by Newport Dispatch.
Photo: Quang Vuong via Pexels. Photo is illustrative and not from the scene.
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