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Former Jay Peak, Burke Owners Indicted
Former Jay Peak, Burke Owners Indicted
Bill Stenger and Ariel Quiros have been indicted on 14 Federal charges.
Wednesday, May 22, 2019, 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


Former Jay Peak and Burke owners Ariel Quiros and Bill Stenger have been indicted on a litany of Federal charges in the latest chapter of the massive EB-5 scandal. The two had previously settled civil charges with the state and Federal government, in which they agreed to pay fines and surrender properties.

Quiros, Stenger, and former Jay Peak COO Bill Kelly pleaded not guilty on Wednesday.

According to VTDigger, Quiros's attorney is alleging there is evidence showing the involvement of the "state’s congressional delegation, former employees and past governors" in the scandal.

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

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.

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.


  • Federal grand jury indicts Jay Peak developers - VTDigger External link


  • Related Stories on NewEnglandSkiIndustry.com
  • Sale of Jay Peak and Burke Mountain Delayed - August 14, 2018
  • Vermont Settles with Quiros, Stenger over Jay Peak, Burke Scheme - July 12, 2018
  • Federal Government Terminates Vermont EB-5 Center - July 10, 2018
  • Receiver: Jay Peak and Burke To Be Sold This Year - February 15, 2018
  • Quiros Surrenders Jay Peak and Burke in SEC Settlement - February 2, 2018


  • More Information
  • Burke Mountain Resort on NewEnglandSkiIndustry.com
  • Jay Peak Resort News on NewEnglandSkiIndustry.com
  • Burke Mountain Resort on NewEnglandSkiHistory.com
  • Jay Peak Resort on NewEnglandSkiHistory.com


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