Jay Peak bombshell - Page 143

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  1. #1421
    thetrailboss's Avatar
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    Meanwhile.... https://vtdigger.org/2019/11/14/sten...cutors-say-no/




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  2. #1422
    A recent article about the EB-5 fraud court proceedings had this nugget:

    The receivership is estimating the value of Jay Peak at around $90 million to $100 million and Burke Mountain at between $10 million and $20 million, according to Schneider. Jay Peak is currently on the market, while Burke Mountain isn’t expected to be put up for sale until next year.

    Article here: https://vtdigger.org/2019/12/08/quir...-in-260m-suit/

    If I recall correctly, the hotel alone at Burke cost in the vicinity of $55 million. So there's at least $35 million wiped out.

    One thing is for sure. Both mountains will need improvements. Jay Peak had a TON of money poured into hotels and other buildings, but extremely little put into the mountain itself. A purchaser will need to budget for some very expensive snowmaking and lift upgrades. Burke has less of a need to deal with lifts, but the snowmaking needs a lot of attention in order to bring it up to modern day standards.

  3. #1423
    Quote Originally Posted by VTKilarney View Post
    A recent article about the EB-5 fraud court proceedings had this nugget:

    The receivership is estimating the value of Jay Peak at around $90 million to $100 million and Burke Mountain at between $10 million and $20 million, according to Schneider. Jay Peak is currently on the market, while Burke Mountain isn’t expected to be put up for sale until next year.

    Article here: https://vtdigger.org/2019/12/08/quir...-in-260m-suit/

    If I recall correctly, the hotel alone at Burke cost in the vicinity of $55 million. So there's at least $35 million wiped out.
    Wow. Given a new high-speed quad will run you...$6-9 million by its self both those numbers are pretty depressing. It's a shame there's just no money in the ski industry.
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  4. #1424
    Is Stenger just an unwittingly attached to this? I don't know anything about him except he's been a staple there for years. Seems to me he was not aware of the unfolding fraud - or maybe not until it was too late?

    Anyone have any insight into his character?

  5. #1425
    Quote Originally Posted by 1dog View Post
    Is Stenger just an unwittingly attached to this? I don't know anything about him except he's been a staple there for years. Seems to me he was not aware of the unfolding fraud - or maybe not until it was too late?

    Anyone have any insight into his character?
    It depends who you ask. The federal government has charged Stenger with ten criminal charges, including conspiracy to commit wire fraud, wire fraud and making false statements. Stenger has plead not guilty.

    Stenger has settled separate civil cases with the federal government and the state of Vermont. In both of those cases Stenger agreed to pay a fine. Theoretically, an innocent person can settle a civil case because they want to avoid the risk of trial - so make of the settlement what you will.

    In my opinion, Stenger was not clean. He either knew what was happening or he was the world's most incompetent business person. Take your pick. My opinion is that it was the former.

  6. #1426
    thetrailboss's Avatar
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    Quote Originally Posted by 1dog View Post
    Is Stenger just an unwittingly attached to this? I don't know anything about him except he's been a staple there for years. Seems to me he was not aware of the unfolding fraud - or maybe not until it was too late?

    Anyone have any insight into his character?
    It is very, very hard to think he did not know. He probably chose "not" to know.
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  7. #1427
    Quote Originally Posted by VTKilarney View Post
    It depends who you ask. The federal government has charged Stenger with ten criminal charges, including conspiracy to commit wire fraud, wire fraud and making false statements. Stenger has plead not guilty.

    Stenger has settled separate civil cases with the federal government and the state of Vermont. In both of those cases Stenger agreed to pay a fine. Theoretically, an innocent person can settle a civil case because they want to avoid the risk of trial - so make of the settlement what you will.

    In my opinion, Stenger was not clean. He either knew what was happening or he was the world's most incompetent business person. Take your pick. My opinion is that it was the former.
    Seems obvious, not sure why anyone would be looking to give him a 'pass'. I don't think 1dog was, seems they were just asking.

  8. #1428
    fbrissette's Avatar
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    Quote Originally Posted by thetrailboss View Post
    It is very, very hard to think he did not know. He probably chose "not" to know.
    He knew. How much he personally financially benefited from the scam is less clear.

  9. #1429

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    Quote Originally Posted by VTKilarney View Post
    A recent article about the EB-5 fraud court proceedings had this nugget:

    The receivership is estimating the value of Jay Peak at around $90 million to $100 million and Burke Mountain at between $10 million and $20 million, according to Schneider. Jay Peak is currently on the market, while Burke Mountain isn’t expected to be put up for sale until next year.

    Article here: https://vtdigger.org/2019/12/08/quir...-in-260m-suit/

    If I recall correctly, the hotel alone at Burke cost in the vicinity of $55 million. So there's at least $35 million wiped out.

    One thing is for sure. Both mountains will need improvements. Jay Peak had a TON of money poured into hotels and other buildings, but extremely little put into the mountain itself. A purchaser will need to budget for some very expensive snowmaking and lift upgrades. Burke has less of a need to deal with lifts, but the snowmaking needs a lot of attention in order to bring it up to modern day standards.
    The scary thing is that 572 million was spent on all of the Jay Peak projects! Far worst than what happened at Burke.

  10. #1430
    $572M spent recently and your summit lift is a tram that can't run in winds over 5 mph.
    Solid investment right there!

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