EB-5

Taylor Dobbs / VPR

Sen. Bernie Sanders says he’s looking forward to next week after Hillary Clinton beat him by about 15 percent of the vote in the New York primary Tuesday.

“Today we took Secretary Clinton on in her own state of New York and we lost,” Sanders said to reporters after landing in Burlington Tuesday night. “I congratulate Secretary Clinton on her victory.”

Courtesy of Vermont Department of Financial Regulation

The bombshell allegations last week surrounding development projects in the Northeast Kingdom point to a $200 hundred million scheme to defraud investors. On the next Vermont Edition, Vermont's top financial regulator Commissioner Susan Donegan explains what happened at Q Burke and Jay Peak ski resorts.

Alleged EB-5  fraudsters Ariel Quiros (left) and Bill Stenger (at podium) have settled a federal lawsuit.
Vermont Business Magazine

Federal authorities launched an investigation into Jay Peak’s EB-5 projects nearly a year before state officials had their first inkling that something illegal was afoot. And documents on file at the Securities and Exchange Commission indicate that the agency had strong forensic evidence of a massive fraud well before the changes in state regulatory oversight that Gov. Peter Shumlin now credits for taking down the “Ponzi-like” scheme.

The Shumlin administration sought Monday to disassociate its request to delete the emails of five former staffers from a major civil fraud case revealed last week against two developers in the Northeast Kingdom who used a foreign investor program overseen by the state to raise capital.

There are many actors in the Jay Peak/Q-Burke tragedy playing out on our Northern Vermont stage.

I think everyone in Vermont felt extreme disappointment when they heard the news of the SEC investigation of the Q Burke and Jay Peak owners. I know I did.

The EB-5 program was supposed to bring economic salvation to the Northeast Kingdom. Until I left VPR last year, I covered this story as a field reporter, beginning with the press conference at Jay Peak resort in 2012, where Bill Stenger mapped out the projects he said would create 10,000 jobs.

Taylor Dobbs / VPR

Sen. Patrick Leahy said Friday that Congress must provide more oversight of funds raised through the federal EB-5 program, which allows foreign investors to invest hundreds of thousands of dollars in exchange for visas to the U.S.

Mount Snow

While attention in the state has been directed toward the alleged EB-5 violations at Jay Peak and Burke Mountain, another EB-5 project in southern Vermont has also hit a snag.

Clockwise from top left: Vermont Department of Financial Regulation; Alden Pellet/AP; Freeman/French/Freeman; Steve Legge/AP

The news on Thursday of major, alleged fraud in the Northeast Kingdom was a punch in the gut for Vermonters who had nurtured dreams of economic revitalization in the area. But the story is pretty complicated. If you’re coming to it cold, here’s what you need to know.

The man at the center of a massive alleged fraud in the Northeast Kingdom has been a major donor to the Vermont Democratic Party.

Jeb Wallace-Brodeur for VPR

A private venture that was supposed to spark an economic renaissance in northern Vermont has turned into what state and federal authorities are calling a “Ponzi-like” fraud on foreign investors, who have allegedly been duped out of tens of millions of dollars by the owner of Jay Peak. 

Herb Swanson / swanpix.com

The Securities and Exchange Commission says that two Northeast Kingdom developers and their companies have defrauded foreign investors in the federal EB-5 program.

Federal and state authorities raided the Jay Peak and Q Burke resorts Wednesday.

Charlotte Albright / VPR file

We tackle two big stories in Vermont news in today's program.

Hilary Niles for VPR

State officials today will celebrate a Northeast Kingdom airport’s new and improved runway — a project several years and many million dollars in the making. Now, private developers are on the hook to deliver other improvements. And there’s some concern about delays in the developer’s timetable.

Freeman/French/Freeman

Northeast Kingdom developer Bill Stenger has unveiled the design for a new airport terminal to be built at the state airport in Coventry.

Charlotte Albright / VPR file

There’s a hiring spree going on in the ski resort town of Burke in the Northeast Kingdom. A new hotel and conference center due to open in December will need as many as 200 workers. The rush is on to find them as construction moves ahead.

file/Herb Swanson / swanpix.com

A piece of the $600 million economic redevelopment plan underway in the Northeast Kingdom is back on track. Vermont’s Department of Financial Regulation has granted conditional approval that allows the ski resort to seek foreign investment for a project already under development in Burke.

The director of the EB-5 Vermont Regional Center has resigned to take a job overseeing an EB-5 program at Mount Snow, raising concerns from Gov. Peter Shumlin about the relationship between the now-former state employee and the business operations he was supposed to oversee.

Charlotte Albright / VPR

Construction will begin in Newport on May 14 for a biotechnology research and manufacturing center that will be one of the first of its kind in the nation.

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