Jay Peak bombshell - Page 10

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  1. #91
    thetrailboss's Avatar
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    Quote Originally Posted by VTKilarney View Post
    It was much ballyhooed that Vermont's EB-5 center was the only state sponsored center. That was supposed to be a good thing. We are now seeing the ugly side of this arrangement. It stands to reason that a state sponsored EB-5 center would be more inclined to protect local developers than foreign investors who live out of state. I'm not saying that they did anything wrong. I'm just saying that state government has its own priorities.
    My concern is that they don't have the resources to do the whole job and/or just don't seem to understand what their role should be.

    Live, Ski, or Die!


  2. #92
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    Quote Originally Posted by VTKilarney View Post
    You missed a part. Quiros said that they know they will get their money back. Can someone explain to me how they know this?
    No, I saw that as well. There is no "guarantee" in any investment. If there is that raises huge red flags....out of fear that Mr. Ponzi might be involved:



    Off-topic: Vermont Securities Officials just prosecuted and jailed two guys (a local filmmaker and another business guy) for a huge Ponzi scheme that ran from 1998-2008 or so. Pretty sad.

    And other off-topic comment: my first job out of college was in the building in Boston where Mr. Ponzi had his offices back in the day. They had a historic marker indicating such.
    Live, Ski, or Die!


  3. #93
    Quiros said the decision to execute the investors’ exit strategy in August 2013 was prompted partly by some investors who had asked for it, and also by an approaching promotional trip to recruit investors for pending EB-5 projects — namely, the AnC Bio biotech research and manufacturing facility in Newport, and buildout of Q Burke Mountain ski resort in Burke.

    He wanted Stenger and Jay Peak representatives, as well as Gov. Peter Shumlin and other state officials, to be able to say on a trip to Asia that his first batch of investors were being paid back.
    ROTFLMAO

    Yup. Just as I suspected. How freaking unbelievably shady.
    President - Bicknell's Thrush Extermination Solutions (BTES), LLC



  4. #94
    thetrailboss's Avatar
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    Quote Originally Posted by BenedictGomez View Post
    ROTFLMAO

    Yup. Just as I suspected. How freaking unbelievably shady.
    Yes, "some investors" asked to be paid back in 2023 instead of 2013. Makes sense.
    Live, Ski, or Die!


  5. #95
    Investor: You told me that I could cash out by selling, through a real estate agent, a fractional ownership interest in a Tramhouse Lodge unit. Why hasn't that happened?
    Quiros: Well... there would have been no guarantee that you could find a purchaser. Have you seen how rough the real estate market is? I've decided to change things. You are now guaranteed to get your money back!
    Investor: How?
    Quiros: Take this IOU. That's how.
    Investor: How is this a guarantee?
    Quiros: Because it's 200% ethical! Now get out of my office. I've got a Chinese investor who is interested in AnC Bio on hold who needs to be told that you are now getting your investment back.

  6. #96
    thetrailboss's Avatar
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    Quote Originally Posted by VTKilarney View Post
    Investor: You told me that I could cash out by selling, through a real estate agent, a fractional ownership interest in a Tramhouse Lodge unit. Why hasn't that happened?
    Quiros: Well... there would have been no guarantee that you could find a purchaser. Have you seen how rough the real estate market is? I've decided to change things. You are now guaranteed to get your money back!
    Investor: How?
    Quiros: Take this IOU. That's how.
    Investor: How is this a guarantee?
    Quiros: Because it's 200% ethical! Now get out of my office. I've got a Chinese investor who is interested in AnC Bio on hold who needs to be told that you are now getting your investment back.
    The appropriate term is QIOU.
    Live, Ski, or Die!


  7. #97
    Quote Originally Posted by VTKilarney View Post
    It was much ballyhooed that Vermont's EB-5 center was the only state sponsored center. That was supposed to be a good thing. We are now seeing the ugly side of this arrangement. It stands to reason that a state sponsored EB-5 center would be more inclined to protect local developers than foreign investors who live out of state. I'm not saying that they did anything wrong. I'm just saying that state government has its own priorities.
    It's a terrible idea! Complete conflict of interest.

    Not only that, but with the for-profit arrangement there's skin-in-the-game and an incentive to make sure things operate as they should. It's no guarantee there wont be monkey-games, but it's a strong safeguard. With the government in control of this it directly injected politics, not to mention, an incentive to "grab $500,000 bills" without particular care to the eventual true success of the venture.

    Worse? I practically guarantee you the State of Vermont does not have the quality individuals and the desire necessary to rip apart Jay Peak's financials and do the financial detective work into every invoice, every wire, every relationship, and every PO that the for-profit world does routinely.

    That's a BIG part of how & why Bernie Madoff got away with what he did, because the dolts at the SEC were generally poorly paid (relative to their for-profit counterparts), unqualified, under-educated, and literally never worked a day on Wall Street in their life. They had absolutely zero chance against Madoff's people, even when a hedge fund genius delivered Madoff's head to the SEC on a silver platter......TWICE! They had no idea how to interpret the data. Madoff's people versus $65,000 per year SEC analysts was akin to Godzilla vs. Bambi.

    President - Bicknell's Thrush Extermination Solutions (BTES), LLC



  8. #98
    The Jeezum Crow promoter just posted 25 photos of the event to the Jeezum Crow facebook page. Out of 25 photos posted, all but three were stage shots. The three crowd shots they posted are these:
    10497177_473698879441591_456496950948098979_o.jpg
    JC2.jpg
    JC3.jpg

    And for those of you who think that this was just a daytime problem...
    JC4.jpg

  9. #99
    thetrailboss's Avatar
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    Quote Originally Posted by VTKilarney View Post
    The Jeezum Crow promoter just posted 25 photos of the event to the Jeezum Crow facebook page. Out of 25 photos posted, all but three were stage shots. The three crowd shots they posted are these:
    10497177_473698879441591_456496950948098979_o.jpg
    JC2.jpg
    JC3.jpg
    Obviously the guaranteed turnout will be there next year.......or at least by 2023.
    Live, Ski, or Die!


  10. #100
    All schadenfreude aside, the saddest part of this tale is its impact on the ski industry as a whole. Projects like the Balsams resort may very well be crippled by Jay Peak's example. Several other ski resorts were trying to get EB-5 programs up and running. While the merits of EB-5 money is a matter of debate, it's always nice to see infrastructure improvements to ski areas - and perhaps even the revival of a closed ski area. Thanks to Mr. Stenger and Mr. Quiros, that may be much less likely to happen now.

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