"It is strange to see a completed building like this one sitting here"
VERMONT - The $50 million Q Burke Hotel and Conference Centre is the newest addition to Burke Mountain Resort.  The resort, purchased in 2012 by Ariel Quiros, owner of Q Resorts, and Bill Stenger, also co-owner of Jay Peak Resort,  features 55 ski trails and 15 glades spanning over 270 acres skiable of terrain and over 100 acres of glades.
The new hotel and conference centre is left in a bit of an unusual situation. The beds neatly made, restaurant tables set. Just one last thing to do, pay for it. Stenger says it's the last hurdle to opening a "home run" business.
That could prove a challenging feat as in a stunning case of alleged fraud described by the the US Securities and Exchange Commission as a "ponzi-like scheme", Quiros and Stenger, have had their assets frozen, and properties seized by government officials.
The hotel has been put into receivership under the control of court-appointed attorney Michael Goldberg, who had already received receivership of Jay Peak Resort as well.
RELATED: Will Jay Reopen?
"Severe Financial Mismanagement" Threatens Resort's Ability to Stay Operational. On April 14, 2016 Jay Peak Resort, hosts of "Big Gay Jay Weekend", and sister mountain Burke Mountain were seized by Government officials...
The bulk of the allegations are towards Quiros, with Stenger mostly being accused of ignoring warnings of wrong-doing, and authorizing the transfer of funds to Quiros.
"Just one last thing to do, pay for it."
The new 116 room hotel at Burke Mountain is ready to open, but the opening has been delayed as the property has many outstanding bills, and vendors demanding payment and threatening to turn off services.
Goldberg has said the court did give him permission to take $750,000 from Jay Peak's accounts to pay the most pressing bills at Q Burke Hotel for a skeletal staff of employees, insurance and utilities.
Stenger took the Burlington Free Press on a tour of the new property, which on April 14, 2016, saw the locks changed by federal authorities.
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“We all feel betrayedâ€
According to Gov. Peter Shumlin, the fraud began as early as 2008. The story gets a bit juicy here as Shumlin has forged closed ties with Quiros and Stenger over the years.
Quiros, Stenger and the companies they control have donated tens of thousands of dollars to his campaigns. He traveled to Asia and Miami with Stenger to promote Vermont’s EB-5 projects. His former campaign manager and deputy chief of staff, Alex MacLean, left his office to go to work for Jay Peak. Shumlin even hailed the two in his 2013 State of the State address, saying that they “continue to shine a beacon of hope, opportunity and future prosperity†in the Northeast Kingdom.
Now distancing himself as he addressed a crowd of lawmakers and reporters he says “We all feel betrayed, It’s a dark day for Vermont.â€
Shumlin insists those connections played no role in his decision-making; “I think it’s a testament to the fact that campaign contributions don’t make a difference " pointing to the structure he set up that he claims resulted in exposing the fraud.
He went on to say he was particularly concerned about “the hundreds of employees in the Northeast Kingdom who rely on Jay Peak, Q Burke and the related projects to support their families — projects that appeared to hold so much promise.â€
He continued saying Goldberg has assured him federal authorities would attempt to “maintain normal operations†at Jay and Q Burke Mountain Resort; “Therefore, we do not expect significant job lossesâ€.
The governor later acknowledged that two Newport projects yet to begin construction — a biomedical research facility and a downtown redevelopment initiative known as the Renaissance Block “will not happen.â€
Continuing story... Watch for updates.
Cover Photo:Â Terri Hallenbeck - Seven Days Vermont
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