Big Burke announcement

[from_the_NEK]

Good points. I saw that despite all the money raised they still need (only) $69,000,000 to COMPLETE the projects they had started.

By far the largest of the "Projects started" is AnC Bio. I figure after ther ~$5 million to complete contractor payments for the Burke Hotel, there is probably another $2-3 million in condo construction left at Jay. I'm not sure if the Stateside Rec center was considered "started" or not.

 

[mbedle]

I think the Shumlin/State portion of this is just starting to smolder.....kinda like the Q fraud was a couple years ago. The order to delete emails just days before what he knew was coming. The releasing of "a representative sample", which I admire the creativity in that "sell job".....might as well say "here are the emails that contain absolutely nothing incriminating whatsoever and have been sanitized for your consumption". The $20K "price tag" to recover public information.......love it. Where can I send my check?

Can I just bring a thumb drive and copy them Shummy? That way we can all save a few bucks.....

Shummy said, audit, but he didn't say when....

I'm guessing the the Pols were so pleased with the positive spin and story about investment, jobs, etc. that they were perfectly fine not to look a gift horse in the mouth until that horse started to leave steaming piles of crap every where.

I also find it interesting that I get the feeling the more they dig the more they won't be able to account for more than the $50M they believe Q fraud took. I cant remember where I saw it in the articles this week but I saw the "questionable" sum up to like $69M or something. Then again they already established they misappropriated $200M or so right?

Man, wouldn't it be nice to find a portion of that in Shummy's accounts?

The 50 million is pretty much accounted for and documented in the recent info provided on the receivership's website. The forensic accounting has been done and based on the motion to deny Quiros access to 50 million, it did not appear that any loose ends are present. Who knows, maybe they are holding back info, but since they have traced all the money, not sure how they could do that. The 50 million are the funds that Quiros took and used to purchase the ski resorts, pay taxes, buy the condo and pay interest on the margin loans. The 69 million is the amount that is needed to finish off the buildings at Jay Peak (cottages, medic and rec centers) and build the AncBio facility. That number also takes into consideration another 27 million available under the offering (additional investors). The 200 million number includes the use of the funds that were either commingled, used to complete overruns at the Tramhouse, or were placed as collateral agains the margin loans and his personal line of credit. A lot of those funds were not taken (lets say pocketed by Quiros), but just used in a manor that violated the offering and agreement with the investors. I'm not discounting that number, it just doesn't have the same weight that the 50 million does. I think the overall amount that they are looking to collect (which they will never get) is around $169 million.

 

[mbedle]

The forensic accounting has been done and based on the motion to deny Quiros access to 50 million, it did not appear that any loose ends are present. Who knows, maybe they are holding back info, but since they have traced all the money, not sure how they could do that.

I take back that statement - its always possible that somebody in the State of Vermont received a check from Quiros to make things go smoothly.

 

[mbedle]

Its also nice to know that the State of Vermont and the IRS received a total of 4.2 million of funds - wonder if they will be giving that back to the investors?

 

[mbedle]

This is a summary of costs to complete the EB-5 offerings for Phase VI and VII:
Phase VI
84 Cottages - 22.5 million per offering
Rec Center - 7.2 million per offering
Medical Center - 2.3 million per offering
Balance of funds in EB-5 account - $0
Balance of funds in Stateside EB-5 account - $55,000
Incomplete cottages under construction - 6 million

Total to complete Phase VI - 26 million.

Phase VII
Bio Research Rooms & Machinery - 63 million
Distribution Rights - 10 million
Other Costs - 18 million
Project Sponsor Contribution - 8 million
Balance of Investor Funds to be Raided - 27 million
Escrow Accounts - 14 million
Non-Escrow Account - 5.2 million
Vendor Payments - 9.9 Million

Total to Complete Phase VII - 43 million

That does not take into account the $750,000 to keep Burke afloat for 13 weeks and the potentially 11 million to keep Jay open till October 2016.

 

[thetrailboss]

Its also nice to know that the State of Vermont and the IRS received a total of 4.2 million of funds - wonder if they will be giving that back to the investors?

We know the answer to that one....

 

[mbedle]

We know the answer to that one....

I am guessing that Vermont will pay up on that one - not so sure about the IRS.

 

[thetrailboss]

I am guessing that Vermont will pay up on that one - not so sure about the IRS.

Fat chance on both.

 

[freeski]

Mbedle: Good reporting. When this mess goes into the criminal arena one of the things that might be much bigger than in the SEC case is the outlandish claims made to the investors on the potential of the synthetic vital organs that were to be created. The organs just add such a sick twisted slant. This is going to make a great episode of American Greed.

 

[DJAK]

Exactly. I think that one poster yesterday tried to tell her that same thing.

Can lead a horse to water, but...

 

[River19]

The 50 million is pretty much accounted for and documented in the recent info provided on the receivership's website. The forensic accounting has been done and based on the motion to deny Quiros access to 50 million, it did not appear that any loose ends are present. Who knows, maybe they are holding back info, but since they have traced all the money, not sure how they could do that. The 50 million are the funds that Quiros took and used to purchase the ski resorts, pay taxes, buy the condo and pay interest on the margin loans. The 69 million is the amount that is needed to finish off the buildings at Jay Peak (cottages, medic and rec centers) and build the AncBio facility. That number also takes into consideration another 27 million available under the offering (additional investors). The 200 million number includes the use of the funds that were either commingled, used to complete overruns at the Tramhouse, or were placed as collateral agains the margin loans and his personal line of credit. A lot of those funds were not taken (lets say pocketed by Quiros), but just used in a manor that violated the offering and agreement with the investors. I'm not discounting that number, it just doesn't have the same weight that the 50 million does. I think the overall amount that they are looking to collect (which they will never get) is around $169 million.

That sounds about right based on what I have read as well. The depositions have provided me some entertaining lunch reading over the past couple weeks.

 

[mbedle]

River19 - your quote on your sign off is the best. And yes, lots of good reading.

 

[MEtoVTSkier]

Good to hear bridges are being rebuilt.

Very good to hear

 

[MEtoVTSkier]

http://www.newenglandskiindustry.com/viewstory.php?storyid=431

 

[BenedictGomez]

Quiros, stated Stenger’s salary was “approximately, two hundred and twenty-five, all in” and that, “I give him a hefty allocation for my Jay Peak stuff. He travels quite well. And, you know, it’s not a bonus. It’s a salary – it’s not a salary. It’s a cost expense that I take care of for him, all of it. He flies with his wife, with his family. He flies quite – he flies with a team of about ten men.”

In addition, Quiros alleges that, using North East Contract Services funds, “we paid his taxes last year to the tune of a couple of hundred thousand dollars. I don’t know exactly what amount that was. That money came from here. He had to pay his taxes.”

Stenger's taxes were roughly the same as his salary? In addition to income tax, he'd have to have a lot of capital gains on investments if this is somehow true.

And why was Jay Peak paying Stenger's taxes in the first place?!?!?!

I'm not sure how much of anything Quiros says or recollects can be assumed to be true.

 

[Domeskier]

And why was Jay Peak paying Stenger's taxes in the first place?!?!?!

Good question. If true, Stenger better have included the amount paid by Jay Peak in income and paid taxes on it or the IRS will be coming after him now, too.

 

[thetrailboss]

I'm not sure how much of anything Quiros says or recollects can be assumed to be true.

I was quite surprised at how uneducated he was and how unsophisticated he comes across. I figured he went to business school. Nope. High School before joining the military. Might explain why things went so bad--he was way over his head and did not know or even consider what he was doing.

I have done a fair number of depositions....both defended and taken. If I was the lawyer doing this one I would have been amused to say the least.

 

[River19]

I was quite surprised at how uneducated he was and how unsophisticated he comes across. I figured he went to business school. Nope. High School before joining the military. Might explain why things went so bad--he was way over his head and did not know or even consider what he was doing.

I have done a fair number of depositions....both defended and taken. If I was the lawyer doing this one I would have been amused to say the least.

Like I said before, everything I read from Q in that deposition convinced me he is no where near sophisticated enough to run a chain restaurant let alone a 9 figure complex business with the added layers of multinational investors and SEC regulations to abide by.

He said he has some "crack mechanics" that "put this whole thing together".........Crack mechanics? More like accounting mechanics on crack.

 

[BenedictGomez]

I was quite surprised at how uneducated he was and how unsophisticated he comes across. I figured he went to business school. Nope. High School before joining the military.

Like I said before, everything I read from Q in that deposition convinced me he is no where near sophisticated enough to run a chain restaurant let alone a 9 figure complex business with the added layers of multinational investors and SEC regulations to abide by.

Whenever I read his writing, I always dismissed it as his simply being ESL, is that not the case?

 

[thetrailboss]

Whenever I read his writing, I always dismissed it as his simply being ESL, is that not the case?

Nope. NYC kid, joined Army, stationed in South Korea.


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