Raymond James Settlement Approved

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BURKE - A Florida-based Judge has approved a 150 million dollar settlement between Jay Peak/Burke Receiver Michael Goldberg and wealth management company Raymond James.

According to court documents, "The Receiver asserts claims against Raymond James  for aiding and abetting breach of fiduciary duty, conspiracy to breach fiduciary duty, and fraudulent transfers." Goldberg believes that Raymond James is liable for its role in the fraud, a claim that Raymond James denies. 

 The terms of the settlement include a Bar order, which will prevent any person from suing Raymond James for their part in the alleged fraud. At the time the agreement was reached, there were several class action lawsuits brought by Raymond James. 

Sixty-seven million dollars of the settlement will be used to provide refunds to phase seven investors. Those are the ANC Bio investors whom Goldberg believes are the biggest victims of the alleged fraud. "They were probably the biggest victims of the fraud from an investor standpoint. They did not get their green cards, and they didn't get their money, it was stolen." 

Nineteen million will be used to finish the new Stateside Hotel at Jay Peak Resort and build a recreation center and athletic fields. Goldberg believes this will benefit phase two through six investors by adding to the summer attractions. All of these new features would allow for a greater asking price when Jay Peak’s assets are eventually sold. 

The Burke Hotel contractor will get 3.6 million dollars from the settlement, with an additional 3 million going to Burke Mountain Academy. At a press conference on Thursday, Goldberg said that he believes the contractors will get their money in between two to three months. As of Friday, Jerry Davis of Peak CM was unsure of how the settlement would affect his company, numerous follow-up phone calls and emails were not returned.

 

 

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