Jay Peak bombshell

[VTSkiBike]

Burlington is far worse than it used to be, I lived there for over 6 years and never saw grafitti. It's everywhere now. Crime is far worse too. And the "harmless homeless whacko" population has exploded. Comparing Burlington to St. Louis or Detroit really isnt the point, the point is that Burlington clearly eroded in recent years.

Burlington crime and homelessness is getting to the point where it's now spilling into surrounding counties. In Washington County we had 3 murders in late 2023 (all likely drug related) and local police say they've done more drug raids in 2023 than the past few years combined. Homeless camps are also popping up in Montpelier and Waterbury as well. I only live 40 minutes from Burlington and just have no desire or need to go there based on the reports I've heard lately.

 

[Smellytele]

If I became homeless in VT or any NE state I would start walking south. Try to find my way to San Diego.

 

[JoeB-Z]

If I became homeless in VT or any NE state I would start walking south. Try to find my way to San Diego.

At one time you could get help on that journey from Burlington to a warmer clime. https://www.nytimes.com/1988/11/20/nyregion/homeless-get-ticket-to-leave.html

 

[VTKilarney]

An article was just published by the New Yorker. https://www.newyorker.com/magazine/2024/02/05/the-rural-ski-slope-caught-up-in-an-international-scam

Stenger is quoted at length. Of course he says that he knew nothing, and tries to portray himself as a Jesus figure helping the poor, innocent people of the Northeast Kingdom.

 

[AdironRider]

Can someone point to me a cold hard fact where Stenger did more than say that a condo unit was further along in construction than it actually was? I'm not defending that, but that is also a story as old as time in the world of condo development honestly.

The receiver knows where all the bodies were buried at this point and has personally vouched for Stenger, to the point of hiring him directly, with zero incentive to do so other than Stenger's merit. I know some here really love the pitchfork mentality but the real criminal here was Quiros, I don't get the hate for Stenger honestly. He didn't pocket cash. He didn't get the Trump Tower condo. Etc. Etc. The net result for the NEK from Jay is still positive and Stenger was the primary driver of that.

 

[thetrailboss]

Can someone point to me a cold hard fact where Stenger did more than say that a condo unit was further along in construction than it actually was? I'm not defending that, but that is also a story as old as time in the world of condo development honestly.

He had a role in promoting AnC Bio when it was a complete fraud.

 

[VTKilarney]

You can only pick one:
1) Stenger was a completely incompetent business leader;
2) Stenger knew that there were financial irregularities.

Don't mistake the Receiver's hiring of Stenger with Stenger being clean. Stenger was convicted in a court of law of crimes. The Receiver (from Miami), rightfully so, recognized that Jay Peak needed a local presence, and Stenger filled that role. The Receiver had complete financial control of the mountain, so the risk there was minimal.

 

[AdironRider]

He had a role in promoting AnC Bio when it was a complete fraud.

I want something more specific than that, because I've yet to see any concrete evidence anywhere saying he knew AncBio was indeed a fraud. He solicited investments sure, but all the actual fraud was tied to Quiros. Stenger was never an accountant ultimately.

Plenty of people work for fraudsters, and aren't in on the fraud, including the current GM of Jay mind you, who was the number three guy there during this whole thing, and no one bats an eyelash. That obviously isn't the case exactly with Stenger, but he is clearly closer to Steve Wright than Ariel Quiros in this whole deal.

At the end of the day, Stenger didn't profit from this fraud. I find it really hard to believe Stenger was some sort of criminal mastermind when he didn't gain a dime. Literally no one does that. Receivers don't hire the real fraudsters afterwards either if they really were the problem. That literally never happens either.

 

[thetrailboss]

I want something more specific than that, because I've yet to see any concrete evidence anywhere saying he knew AncBio was indeed a fraud. He solicited investments sure, but all the actual fraud was tied to Quiros. Stenger was never an accountant ultimately.

Plenty of people work for fraudsters, and aren't in on the fraud, including the current GM of Jay mind you, who was the number three guy there during this whole thing, and no one bats an eyelash.

At the end of the day, Stenger didn't profit from this fraud. I find it really hard to believe Stenger was some sort of criminal mastermind when he didn't gain a dime. Literally no one does that. Receivers don't hire the real fraudsters afterwards either if they really were the problem. That literally never happens either.

Sit down and review the hundreds of pages of reporting done on this issue by VTDigger, the SEC Complaint, the pleadings in the Federal case, etc. We've been talking about these for years. Stenger made multiple misrepresentations that violate securities laws documented in those sources.

I agree that Q was the main target and the main culprit for sure. But Stenger was high enough up the food chain to at least know what was really happening and contributing to it.

Stenger also ultimately pleaded guilty in the federal case and served time. It does not get more concrete than that.

And I, too, am curious as to why the Receiver is using Stenger. That said, he does know everything that is Jay and the Receiver canned Stenger when federal charges came down. It is unclear exactly "what" Stenger's relationship is now with Jay as he has recently resurfaced. That was raised in the VT Digger article cited in this thread.

 

[AdironRider]

You're a lawyer, clearly you understand plea deals don't represent all the facts in some cases.

It just doesn't make sense, what was Stenger's motive? I have reviewed plenty of documents, and all I see that isn't insinuation is he misrepresented a hole in the ground as a completed condo building. That is illegal, full stop, but piddly in comparison to Quiros effectively stealing investor funds to buy Jay in the first place.

 

[thetrailboss]

You're a lawyer, clearly you understand plea deals don't represent all the facts in some cases.

It just doesn't make sense, what was Stenger's motive? I have reviewed plenty of documents, and all I see that isn't insinuation is he misrepresented a hole in the ground as a completed condo building. That is illegal, full stop, but piddly in comparison to Quiros effectively stealing investor funds to buy Jay in the first place.

Seriously. Read the years of reporting and the legal filings.

 

[AdironRider]

I already told you I have, and other than the condo hole in the ground, there is no direct connection to Stenger other than “he must have known”.

I think you actually can’t point to another direct example either. But hey, at least I think we all agree the State was probably a bigger problem here than Stenger was, but like any government agency, get to skate and let the taxpayers cover for their sins.

 

[thetrailboss]

I already told you I have, and other than the condo hole in the ground, there is no direct connection to Stenger other than “he must have known”.

I think you actually can’t point to another direct example either. But hey, at least I think we all agree the State was probably a bigger problem here than Stenger was, but like any government agency, get to skate and let the taxpayers cover for their sins.

GTFOOH. You are ridiculous. It's clear that you are trolling, ignorant, or too lazy to actually look at the hundreds of pages of reporting and what we have discussed for now almost eight years. And coming from you, who routinely act as if you know everything and troll and needle people here on other things, it is particularly funny.

Since apparently you can't be bothered to actually do any research, here is a start. Read specifically Paragraphs 2, 5, 43, 44, 49, 50, 51, 52, 56, 64, 67, 73, 76, 81, 84, 97, 98, 99, 102, 106, 110, 114, 115, 121, 122, 123, 129,

https://www.sec.gov/files/litigation/complaints/2016/comp-pr2016-69.pdf

And read Paragraphs 20, 21 (making false statements to induce investors; commingling funds), 25, 32 (Stenger received $1 mill management fee), 34, 37, 38, 40, 41, 42, 43 (misuse of funds), 49 (misrepresenting facts), 55, 57, 59, 61, 63, 65, 71, 82, 84,

https://jaypeakreceivership.com/wp-content/uploads/2019/05/Indictment.pdf

And:

WILLIAM STENGER PLEADS GUILTY TO FALSE DOCUMENT CHARGES RELATED TO THE AnC VERMONT EB-5 PROJECT IN NORTHEAST VERMONT

www.justice.gov

In the end of June 2014, Stenger agreed with the VRC to suspend offering and marketing the AnC Vermont project due to the VRC’s concerns about a number of aspects of the project. Stenger understood that, in order to be permitted to market the AnC Vermont project again, he needed to provide answers to questions the VRC had asked about the financial projections and about the status of U.S. Food and Drug Administration (“FDA”) approvals needed for commercialization of the products. Stenger made a number of submissions to the VRC in an effort to convince the VRC to allow continued marketing of the AnC Vermont project, including a submission on January 9, 2015. The January 2015 submission addressed, among other things, the AnC Vermont financial projections and the timeline for commercialization of the products.

As to the financial projections, during the plea hearing Stenger admitted that he engaged a third-party consulting firm in October 2014 and asked the consulting firm to conduct a market demand study to analyze the potential market size of the AnC Vermont products and services, if the products and services were developed and FDA approved. Throughout the rest of 2014, the consulting firm, which spent many hours working on the market demand analysis and had regular update meetings with Stenger and his team, was never asked to review, analyze, or opine on the project’s financial projections. Instead, the process of working with the consulting firm made clear to Stenger that the AnC Vermont project had no stem cell products, and that the artificial organs either did not exist yet or required updating. In the waning days of December 2014 and beginning of January 2015, Stenger asked the consulting firm’s project lead to write a letter stating that the AnC Vermont project’s business projections were reasonable. Although the consulting firm had not assessed the project’s financial projections, the project lead ultimately signed a letter that falsely asserted that, based upon the consulting firm’s market analysis, the financial projections in the AnC Vermont business plan appeared reasonable. Stenger knew that the consulting firm had not analyzed the financial projections. Nonetheless, Stenger provided the letter to the VRC as part of the January 9, 2015 package of materials in support of reopening project fundraising.

Stenger faces up to five years in prison and three years of supervised release for his knowing and willful submission of false documents to the VRC. For sentencing, as stated in the plea agreement, the government will offer evidence about Stenger’s broader involvement in the fraud scheme as alleged in other counts of the indictment. The Court will determine the sentence with reference to the federal sentencing guidelines. The government has agreed that it will not recommend a fine or forfeiture, but instead will focus on seeking a restitution order for victims.

While a Complaint and Indictment have factual allegations that the government has to prove, the widespread reporting and multiple years of coverage made clear that the Feds had the goods on Stenger et al. With limited resources and time, the Feds only bring charges when they know that they are likely to win and have the facts to support the allegations.

Generally, the biggest sins for Stenger were that he acted at least reckless with investor money and made multiple misrepresentations to investors and regulators. Those are indeed crimes.


That's a hell of a lot more than what you claim.

 

[O09]

I want something more specific than that, because I've yet to see any concrete evidence anywhere saying he knew AncBio was indeed a fraud. He solicited investments sure, but all the actual fraud was tied to Quiros. Stenger was never an accountant ultimately.

Plenty of people work for fraudsters, and aren't in on the fraud, including the current GM of Jay mind you, who was the number three guy there during this whole thing, and no one bats an eyelash. That obviously isn't the case exactly with Stenger, but he is clearly closer to Steve Wright than Ariel Quiros in this whole deal.

At the end of the day, Stenger didn't profit from this fraud. I find it really hard to believe Stenger was some sort of criminal mastermind when he didn't gain a dime. Literally no one does that. Receivers don't hire the real fraudsters afterwards either if they really were the problem. That literally never happens either.

What I find interesting is that if the State never used 20 million in federal and state grant money to expand the Newport airport runway to 5000 ft long that the fraud portion of the scandal (the ANC bio building) would have never happened.

Would Vermont taxpayers would be on the hook if it weren’t for the furthering of Newport's one room terminal airport runway? The former head of aviation at the state who was swayed by the delusion of inbound international flights for scientifically fabricated stem cells therapies, likely, facilitated the scheme.

The state dissolved the aviation agency post five or so years ago, fired the person responsible for lengthening the runway, and opened a criminal investigation into the Guy. But, that only occurred years later after complaints about him using a helicopter to attend permit hearings while his staff carpooled, and being paid as a consultant for applicants while he provided state comment for Act 250 permits surfaced during a runway expansion project that never came to fruition at the other end of the state at the Hermitage. Those tens of millions of dollars of federal runway expansion grant funds were ripe fruit for these guys trying to appear legit. All that was needed was a corrupt aviation head with the power to approve projects who was willing to grease his own palms, while advising the applicants through the federal grant process.

I wonder how much longer the Jim Barnes' Hermitage fraud would have gone on if the runway expansion to 5000 ft to qualify the project for federal funding didn't get shut down during the permit process.

 

[SkiNewEngland.net]

It just doesn't make sense, what was Stenger's motive? I have reviewed plenty of documents, and all I see that isn't insinuation is he misrepresented a hole in the ground as a completed condo building. That is illegal, full stop, but piddly in comparison to Quiros effectively stealing investor funds to buy Jay in the first place.

Stenger was brought to Jay Peak by then-owner MSSI in the mid-1980s. About 10 years later, MSSI announced it wanted to sell Jay Peak, and reportedly tasked Stenger with getting it sold. 10 years after that, with the ski area still unsold, Stenger started the first EB-5 project at Jay Peak. Stenger then recruited Quiros to "buy" Jay Peak from MSSI, a transaction the SEC determined to be illegally financed by the previously collected EB-5 funds. As part of the deal, Quiros gave Stenger a 20% ownership stake (which he later revoked).

 

[djd66]

GTFOOH. You are ridiculous. It's clear that you are trolling, ignorant, or too lazy to actually look at the hundreds of pages of reporting and what we have discussed for now almost eight years. And coming from you, who routinely act as if you know everything and troll and needle people here on other things, it is particularly funny.

Since apparently you can't be bothered to actually do any research, here is a start. Read specifically Paragraphs 2, 5, 43, 44, 49, 50, 51, 52, 56, 64, 67, 73, 76, 81, 84, 97, 98, 99, 102, 106, 110, 114, 115, 121, 122, 123, 129,

https://www.sec.gov/files/litigation/complaints/2016/comp-pr2016-69.pdf

And read Paragraphs 20, 21 (making false statements to induce investors; commingling funds), 25, 32 (Stenger received $1 mill management fee), 34, 37, 38, 40, 41, 42, 43 (misuse of funds), 49 (misrepresenting facts), 55, 57, 59, 61, 63, 65, 71, 82, 84,

https://jaypeakreceivership.com/wp-content/uploads/2019/05/Indictment.pdf

And:

WILLIAM STENGER PLEADS GUILTY TO FALSE DOCUMENT CHARGES RELATED TO THE AnC VERMONT EB-5 PROJECT IN NORTHEAST VERMONT

www.justice.gov

While a Complaint and Indictment have factual allegations that the government has to prove, the widespread reporting and multiple years of coverage made clear that the Feds had the goods on Stenger et al. With limited resources and time, the Feds only bring charges when they know that they are likely to win and have the facts to support the allegations.

Generally, the biggest sins for Stenger were that he acted at least reckless with investor money and made multiple misrepresentations to investors and regulators. Those are indeed crimes.


That's a hell of a lot more than what you claim.

That is a shit ton of research. Just curious- how long did that take you?

 

[jimmywilson69]

I really wish we didn't have to rehash the shitshow that happened up there...

Glad Jay is in solid ownership. Hope that something similar can happen to Burke!

 

[urungus]

Has the new Jay ownership made any indication that they will be buying any new lifts ?

 

[thetrailboss]

That is a shit ton of research. Just curious- how long did that take you?

About 20 minutes. Not long at all. That was part of my point. It’s not hard to look now and see what Stenger’s role in the scheme was. As said, the summary would be not monitoring the money (or knowing what was going on) and misleading investors and regulators. The fact that he did not buy himself a penthouse in Trump Tower with the proceeds is immaterial. He still did wrong. Q did a lot more wrong.

 

[BenedictGomez]

I want something more specific than that, because I've yet to see any concrete evidence anywhere saying he knew AncBio was indeed a fraud. He solicited investments sure, but all the actual fraud was tied to Quiros. Stenger was never an accountant ultimately.

You're going with the, "he's the dumbest sunbitch alive" defense. It's not credible.

I, sitting 350 miles away, and with no access to any financials, blueprints, etc..... posted here that ANC Biotech was fishy as hell and almost certainly a scam, or at the very least doomed to never get off the ground. Yes, it really was that obvious to anyone with even a basic background in biotech. You also evidentially missed the part whereby VTDigger notes Stenger was pushing this whilst knowing it was horsecrap. That is financial fraud.