EB-5 Investors Willing to Infuse More Cash To See Projects Completed, and Green Cards Secured
Vermont -Â Typically in cases where investors are defrauded, they are anxious to see assets liquidated and get as much of their money back as they can. Â However, the case unfolding in Vermont right now which involves Jay Peak Resort and Burke Mountain along with a couple of other projects in the state, is seeing a different reaction.
In April, 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.  The investment dollars were raised as part of the US Federal Government's EB-5 Program which grants permanent residency visas to foreign nationals who invest at least $500,000 in projects that result in the creation of at least 10 jobs in economically depressed regions of the country.
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Quintos and Strenger used the program to help finance projects at Jay Peak Resort, build a new hotel at Burke Mountain, and with promises to build a Bio Medical facility in Newport along with a couple of other projects.
With the funds gone, allegedly funneled to cover deficits of other projects as well as to cover personal expenses of the developers, many of these projects lay uncompleted, meaning the necessary job creation to secure investors' visas has not happened.
With the properties and businesses now in receivership, under the control of court appointed attorney Michael Goldberg, investors are "scared to death," says Felipe Vieira, one such EB-5 investor who put $500,000 into projects run by Stenger and Quiros.
It's not just money on the line, investors' new lives in the US are also at stake, and Goldberg says that makes this receivership different than many others.
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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 jobsâ€...
Instead of simply cashing out and liquidating assets, which Goldberg said is typical of many other court-appointed takeovers he has worked on, he said many investors have expressed that they want to see Kingdom projects successfully completed.
Goldberg says some EB-5 investors have told him they’re willing to put more money into the project in order to see its success.  “In the last week I have been contacted by several investor groups for different other projects, Q Burke and Stateside, who actually want to infuse additional funds, in the equity and projects. So jobs can be created and they can get their EB-5 visa,†Goldberg said.
While any additional investments made could significantly complicate the approvals process, it could save many of the projects, create more jobs in the job hungry region, help ensure the long-term stability  of the companies, and secure these new immigrants' dream to live in the US.
As the mess continues to unfold, this could be just the solution Goldberg needs to get the region through this scandal.
Cover Photo:Â Gregory J. Lamoureux/County Courier
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