The SEC contends Quiros misused some $200 million in investor money and improperly diverted about $50 million for his personal use. The money came from foreign investors in the federal EB-5 visa program, which allows permanent US residency for those who finance projects that create a certain number of jobs.

The SEC is seeking an injunction barring Quiros from operating companies related to the Jay Peak projects, which would be taken over by a court-appointed receiver. The SEC also has frozen most of Quiros assets.

Gordon told US District Judge Darrin P. Gayles that the SEC has no case because Quiros did not make any misrepresentations on offering documents for investors and that investors were told money paid to one of his entities could essentially be used for any purpose Quiros wanted.

lsquo;lsquo;Why wouldnt he? Its his money, Gordon said. lsquo;lsquo;There was disclosure. Any investor who didnt believe this agreement did not have to invest money.

Gayles, who set a second day of testimony for Tuesday, said there may have been important points that were not said to investors in the documents about how their money could be used. Gayles has not said when he will rule.