NewEnglandSkiIndustry.com SkiNewEngland.net
Former Jay Peak CEO to Sentenced to 18 Months in Prison
Bill Stenger was indicted on a litany of Federal charges three years ago.
Thursday, April 14, 2022, NewEnglandSkiIndustry.com

Ariel Quiros and Bill Stenger with Senator Patrick Leahy and Governor Peter Shumlin
Ariel Quiros and Bill Stenger with Senator Patrick Leahy and Governor Peter Shumlin


Despite a claim from his defense attorney that he would "never plead to anything because he didn't do anything wrong," former Jay Peak CEO Bill Stenger plead guilty to providing a false statement to the government and was sentenced today to eighteen months in prison, plus three years of supervised release, and $250,000 in restitution, VTDigger reported this afternoon.

The sentence was handed down almost six years to the day in which authorities raided Jay Peak and Burke.

Former Jay Peak owner Ariel Quiros and former COO Bill Kelly, who also reached plea agreements, are awaiting sentencing.

Background
Bill Stenger and Senator Bernie Sanders
Bill Stenger and Senator Bernie Sanders

Stenger, a political science major at Syracuse University, started working at at Jay Peak in 1985 and in 2008 recruited Ariel Quiros to purchase the resort from Mont Saint Sauveur International. Following the acquisition, the group's EB-5 immigrant investor proposals expanded throughout the Northeast Kingdom with a planned price tag of $500 million. Meanwhile, Stenger and Quiros started a massive campaign of contributing to politicians, paying for their international junkets, and arranging press conferences and committee appearances to boost investor interest.

Senator Patrick Leahy and Bill Stenger
Senator Patrick Leahy and Bill Stenger

A Federal program created by Senator Ted Kennedy and championed by Senator Patrick Leahy, EB-5 allows immigrants to obtain a green card in exchange for investing $500,000 in a government endorsed business that creates ten jobs. In the case of the Jay Peak program, 20% to 25% of the investment was taken by developers and agents as fees.

The SEC took control of the properties on April 13, 2016, alleging that Quiros and Stenger were running a Ponzi scheme that was defrauding investors. The businesses were placed in receivership under Michael I. Goldberg, with Leisure Hotels and Resorts of Kansas City appointed to run the resorts.

A cornerstone of the SEC's lawsuit was the allegation that margin loans were taken out with EB-5 funds as collateral, a strategy that Quiros described in detail. Quiros and banker Joel Burstein both stated that Stenger participated in margin loan conversations.

The resorts remain under control of the government appointed receiver.

  • Stenger sentenced to 18 months in prison for role in EB-5 fraud - VTDigger External link


  • Related Stories on NewEnglandSkiIndustry.com
  • Pacific Group Resorts Completes Acquisition of Jay Peak - November 2, 2022
  • Judge Approves Jay Peak Sale to Pacific Group Resorts - September 17, 2022
  • Pacific Group Resorts Places Highest Bid for Jay Peak - September 8, 2022
  • Jay Peak Sale Process Kicks Into Gear - August 2, 2022
  • Former Jay Peak Owner Sentenced to Prison - April 29, 2022
  • Former Jay Peak CEO to Plead Guilty - August 11, 2021
  • Former Jay Peak Owner Pleads Guilty to Federal Charges - August 14, 2020
  • Former Jay Peak Owner to Plead Guilty - July 11, 2020
  • Former Jay Peak, Burke Owners Indicted - May 22, 2019
  • Sale of Jay Peak and Burke Mountain Delayed - August 14, 2018


  • More Information
  • Jay Peak Resort on NewEnglandSkiIndustry.com
  • Jay Peak Resort on NewEnglandSkiHistory.com


  • comments powered by Disqus
    Copyright 2014- NewEnglandSkiIndustry.com, All Rights Reserved