William Kelly, EB-5 Fraud, Vermont 2023

William Kelly, 72, Pleads Guilty to EB-5 Fraud Charges

In a shocking turn of events, William Kelly, 72, of Weston, Florida, pleaded guilty to two felony charges in connection with his involvement in the Jay Peak Biomedical Research Park EB-5 investment project, also known as AnC Vermont project, in Northeast Vermont.

Kelly admitted to conspiring with co-defendants Ariel Quiros, Jong Weon (Alex) Choi, and William Stenger in a multi-year wire fraud scheme to defraud immigrant investors seeking green cards through the EB-5 program. He also pleaded guilty to concealing material facts in a matter within the jurisdiction of a federal agency, namely United States Citizenship and Immigration Services (USCIS). 

According to court records and proceedings, the AnC Vermont project was designed to raise $110 million from 220 immigrant investors in order to construct and operate a biotechnology facility in Newport, Vermont. EB-5 immigrant investors could qualify for permanent resident status (commonly known as a green card) by investing $500,000 in a commercial enterprise approved by the Vermont EB-5 Regional Center (VRC), which had the authority to approve and monitor EB-5 projects in Vermont, and by USCIS.

During the plea hearing, Kelly admitted that he and his co-conspirators misled AnC Vermont investors about how investor funds would be used, about how many jobs would be created by the project, and about the timeline for this job creation. For example, Kelly and others knew that it was necessary to demonstrate a plan to create at least 2,200 jobs in order to obtain USCIS approval of the AnC Vermont project, and that USCIS approval and business revenues were both important to investors.

Kelly also admitted to helping Quiros and Stenger pay over $47 million in AnC Vermont investor money to Jay Construction Management, a Quiros-controlled entity, between March 2013 and October 2014. He knew that Quiros forwarded less than $6 million from JCM to AnC Biopharm, a company created and controlled by Choi. Kelly also knew that Quiros used approximately $21 million of the AnC Vermont investor funds sent to JCM to pay off a Raymond James loan that was used for expenses unrelated to the AnC Vermont project.

As part of his plea agreement, Kelly agreed to cooperate in the government’s ongoing matters. The plea agreement caps Kelly’s jail sentence at 15 years, and he will be sentenced on April 3, 2024.

The case is a shocking example of EB-5 fraud and highlights the need for increased oversight and regulation of the program. The Vermont EB-5 Regional Center has been criticized for its lax oversight and failure to properly monitor EB-5 projects in the state.

The AnC Vermont project was designed to raise $110 million from 220 immigrant investors, but it appears that the project was nothing more than a massive scam. The project’s financial projections were based on unrealistic assumptions, and the project’s job creation numbers were inflated to justify the EB-5 approval. The case is a wake-up call for the EB-5 industry and highlights the need for greater transparency and accountability.

Kelly will be sentenced on April 3, 2024, and faces up to 15 years in prison. The case is a reminder of the importance of protecting immigrant investors and ensuring that the EB-5 program is used for its intended purpose – creating jobs and stimulating economic growth in the United States.

Source: https://www.justice.gov/usao-vt/pr/william-kelly-pleads-guilty-fraud-charges-related-jay-peak-eb-5-anc-vermont-project