SEC Charges Former Raymond James Branch Manager for Facilitating $21 Million Fraud
The Securities and Exchange Commission filed charges against Joel N. Burstein, a former registered representative and branch manager with Raymond James & Associates Inc., for helping facilitate an EB-5 offering fraud perpetrated by Jay Peak Inc., a Vermont-based ski resort.
The Securities and Exchange Commission filed charges against Joel N. Burstein, a former registered representative and branch manager with Raymond James & Associates Inc., for helping facilitate an EB-5 offering fraud perpetrated by Jay Peak Inc., a Vermont-based ski resort. The SEC also charged Jay Peak’s former principal Ariel Quiros, as well as other related entities.
EB-5 investments are unregistered offerings that raise capital from foreign investors that can become permanent United States residents by investing at least $1 million to finance a U.S. business that will employ at least 10 American workers.
The complaint alleges that Burstein aided and abetted Quiros’ misappropriation and misuse of investor money that flowed through various brokerage accounts held at Raymond James. Burstein, who is Quiros’ former son-in-law, managed those accounts.
According to the SEC’s complaint, Burstein facilitated Quiros’ misappropriation of more than $21 million of investor funds to acquire the Jay Peak ski resort. He is also accused of assisting Quiros in trying to mask the shortfall created in the Raymond James brokerage accounts from the misappropriation.
The complaint also alleges that Burstein facilitated Quiros’ fraudulent use of more than $18 million of investor money to pay off Jay Peak’s margin debt at Raymond James.
In April 2016, the SEC filed an emergency civil action against Ariel Quiros, Jay Peak, and others, for engaging in an offering fraud in which, among other things, Quiros systematically misappropriated and misused investor funds.
Without admitting or denying the SEC’s allegations, Burstein was ordered to pay a civil penalty of $80,000 and was enjoined from future violations. He was also barred from the securities industry and can apply for reentry after 10 years.
