The mess keeps getting bigger in Vermont
Last month developers Ariel Quintos and Bill Strenger were accused by the US Securities and Exchange Commission, and the State of Vermont, of a massive misappropriation of funds raised from the over $350 million raised from more than 700 immigrant investors from 74 different countries.
“It’s the saddest investor pool I’ve ever dealt with because of the immigration status,†commented Michael Goldberg, the court-appointed attorney responsible for the receivership of the seized properties and businesses of the two men.
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"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...
Hundreds face deportation
Experienced in dealing with the recovery of assets in cases "ponzi-schemes" such as this, Goldberg says of the 200 investors he has been able to reach out to so far, most are primarily concerned about their immigration status.  “A lot of investors are in doubly bad luck with not getting their immigration status and they are certainly not going to get a substantial return,†Goldberg said.
The funds were raised as part of the US Federal Government's EB-5 program, which grants a US permanent residency visa to foreign nationals who invest at least $500,000 into a project in an economically depressed region, when that investment results in the generation of at least 10 new jobs.
The problem is, according to the SEC funds were diverted from projects and used to cover deficits of other projects, and also allegedly to the personal expenses of Quintos.
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Michael Pieciak, deputy commissioner of the Vermont Department of Financial Regulation, said about 400 of the investors still have no idea whether they will get their “green cards†for permanent U.S. residency. “The jobs need to be created, and there needs to be evidence their money created those jobs†.
While the Stateside project at Jay Peak Resort was fully subscribed, the construction of 84 townhomes, a medical center and recreational center were never completed. As a result not enough jobs have been created under the EB-5 program to grant all investors a visa.  Of the $32 million collected for the project, the SEC claims only about $6 million was spent.  According to the Vermont Department of Financial Regulation. as of Sept. 30, 2015, there was less than $60,000 left in the Stateside bank account for the projects.
Felipe Vieira, an investor from Brazil who invested $500,000 in the Stateside project at Jay Peak, has started a new life in Stowe with his wife and daughter. Saving for two years and selling his farm and an apartment building to get the investment funds,  Vieira said he moved to the United States to give his daughter better educational opportunities.
Vieira said he visited Jay Peak to see how construction work was progressing, unaware that Stenger and Quiros had siphoned off money from Stateside to pay for other projects, and construction workers had walked off the job because they hadn’t been paid.
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EDIT: Updated information found made the last part of this story detailing how the immediate financial future of Jay Peak Resort was uncertain out of date and as of the date of publication, incorrect, and so it was removed.
Cover Photo: Miami Court House -Â Anne Galloway/VTDigger
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