Jay Peak bombshell

[drjeff]

Anyone get the feeling, that since there are seemingly obviously numerous VT government officials involved with the oversight of the fraud in this one, that the delay tactic, so that it ends up so off the radar of the average person and the media scrutiny, is going to continue to be used so that by the time some likely behind the scenes negotiated deal for just a proverbial slap on the wrist, is announced, that it will all go away without any appropriate punishment for the players as well as the regulatory folks?

 

[trackbiker]

Anyone get the feeling, that since there are seemingly obviously numerous VT government officials involved with the oversight of the fraud in this one, that the delay tactic, so that it ends up so off the radar of the average person and the media scrutiny, is going to continue to be used so that by the time some likely behind the scenes negotiated deal for just a proverbial slap on the wrist, is announced, that it will all go away without any appropriate punishment for the players as well as the regulatory folks?

Isn't that how it always works? The Sacklers knowingly sent large quantities of doses of opioids to small pharmacies that they knew were way too many for those pharmacies to legitimately dispense. The phamacist go to jail but the Sacklers pay a fine spread out over years, which is about equal to the interest on their billions over that same time and walk away one of the richest families in the country. There are many other examples of similar situations. Money talks.

 

[thetrailboss]

Anyone get the feeling, that since there are seemingly obviously numerous VT government officials involved with the oversight of the fraud in this one, that the delay tactic, so that it ends up so off the radar of the average person and the media scrutiny, is going to continue to be used so that by the time some likely behind the scenes negotiated deal for just a proverbial slap on the wrist, is announced, that it will all go away without any appropriate punishment for the players as well as the regulatory folks?

You think?

Or perhaps waiting until one of those officials announces his intention to not seek re-election?

 

[VTKilarney]

It's looking even worse for the State of Vermont:

‘Aided and abetted’: Newly unsealed records show state feared its own culpability in EB-5 fraud - VTDigger

Roughly 600 pages of records unsealed in federal court last week provide new details about the lengths to which Vermont state officials went in concealing the Northeast Kingdom fraud from investors, the public and the press.

vtdigger.org

 

[fbrissette]

Never thought it would be this bad.
Strange defense strategy - the defense attorneys are basically saying: 'oy yeah, our clients were commiting fraud, but the state knew about it and did nothing'.

 

[drjeff]

It's looking even worse for the State of Vermont:

‘Aided and abetted’: Newly unsealed records show state feared its own culpability in EB-5 fraud - VTDigger

Roughly 600 pages of records unsealed in federal court last week provide new details about the lengths to which Vermont state officials went in concealing the Northeast Kingdom fraud from investors, the public and the press.

vtdigger.org

So lets get the betting pool started, does Gov Scott go back against his recent, and seemingly very reasonable, science based, COVID restriction loosenings back into full panic mode? Or start talking up the non citizens voting in municipal elections in Montpelier and Winooski as a distraction/deflection from what is now seemingly more and more like it was state complicit supervision of the the Jay/Burke EB-5 corruption scandal?

 

[thetrailboss]

It's looking even worse for the State of Vermont:

‘Aided and abetted’: Newly unsealed records show state feared its own culpability in EB-5 fraud - VTDigger

Roughly 600 pages of records unsealed in federal court last week provide new details about the lengths to which Vermont state officials went in concealing the Northeast Kingdom fraud from investors, the public and the press.

vtdigger.org

So the Court unsealed the records? Good. I will be interested to read VTD's coverage on them.

 

[thetrailboss]

So lets get the betting pool started, does Gov Scott go back against his recent, and seemingly very reasonable, science based, COVID restriction loosenings back into full panic mode? Or start talking up the non citizens voting in municipal elections in Montpelier and Winooski as a distraction/deflection from what is now seemingly more and more like it was state complicit supervision of the the Jay/Burke EB-5 corruption scandal?

Yeah but that didn't happen on his watch. It was all Shummy.

 

[drjeff]

Yeah but that didn't happen on his watch. It was all Shummy.

True, but I am guessing that many of the government oversite folks implicated are long time employees of the state and as such, reagrdless of the change at the top, "must be protected for the good of society....." or some other similar politcal speak to attempt to justify their actions.....

Or even if they aren't "protected" by the current folks running Montpelier, they will probably get sometype of paid leave that will cover the time they need to get a full pension, or something akin to that.....

 

[thetrailboss]

True, but I am guessing that many of the government oversite folks implicated are long time employees of the state and as such, reagrdless of the change at the top, "must be protected for the good of society....." or some other similar politcal speak to attempt to justify their actions.....

Or even if they aren't "protected" by the current folks running Montpelier, they will probably get sometype of paid leave that will cover the time they need to get a full pension, or something akin to that.....

Those most culpable--Shumlin, Raymond, Moulton, Sorrell--have either retired or moved on to the next cushy state gig. Completely unacceptable.

And this proves one of BG's points:

In the newly disclosed emails, Kessler discussed the risk to the state of allowing the AnC Bio project to move forward as the SEC weighed the possibility of taking action to shut it down.

“In this context,” Kessler wrote to Humbert, London, Moulton and Raymond, “it seems prudent to me to consider the risk of the SEC finding that the Vermont Regional Center did not take reasonably available steps to protect investors through omission, or worse, that the state by act or omission ‘aided and abetted’ fraud as the SEC found in other enforcement actions.”

Humbert, in a Feb. 11, 2015, reply to Kessler, wrote that the attorney general’s office did not have any lawyers with expertise in the EB-5 program, securities law or SEC investigations, “so we are unable to provide you with legal advice in these highly specialized areas.”

Complete amateur hour.

No serious investor or corporation will want to do business in Vermont for some time. All the talk about regulations mean nothing if fraudsters are allowed and encouraged to do business in Vermont.

 

[drjeff]

Those most culpable--Shumlin, Raymond, Moulton, Sorrell--have either retired or moved on to the next cushy state gig. Completely unacceptable.

And this proves one of BG's points:



Complete amateur hour.

No serious investor or corporation will want to do business in Vermont for some time. All the talk about regulations mean nothing if fraudsters are allowed and encouraged to do business in Vermont.

The part that will most annoy me, and should annoy everyone if it happens, is that purely on preferred ideology of those in charge at the time, there inevitably will be some in the general public being OK if those implicated in this fraud just get a slap on the wrist.

This era where we're in where some are inclined to simply look the otherway when wrong doing happens just simply because those who did the wrong doing are on their same "ideologocal team" is just not OK. Wrong is wrong, and ideology shouldn't play into the potential repercussions

 

[thetrailboss]

The part that will most annoy me, and should annoy everyone if it happens, is that purely on preferred ideology of those in charge at the time, there inevitably will be some in the general public being OK if those implicated in this fraud just get a slap on the wrist.

This era where we're in where some are inclined to simply look the otherway when wrong doing happens just simply because those who did the wrong doing are on their same "ideologocal team" is just not OK. Wrong is wrong, and ideology shouldn't play into the potential repercussions

Oh don't get me started. Vermont in the last 20 years has gone the way of the rest of the country in which ideology is all that matters for most people. It's gotten to the point where Vermont has one party in power with NO check. What you describe happens when there is no check--and it ruins the system for EVERYONE. Shumlin was the first Governor I can think of where ideology was all that mattered. As I've said, worst governor in modern Vermont history. I remember when he ran for Lt. Governor in 2002 and I was a college student helping with campaigning. I could not support him--something just seemed off with him.

 

[VTKilarney]

Get your popcorn out.

Developers in EB-5 fraud case, all facing prison time, expected to square off in court

Bill Stenger, Jay Peak’s former CEO and president, is trying to avoid going to prison. His past business partners are ready to take the stand against him as prosecutors seek to show that he was more than a “bystander” in a scheme that bilked hundreds of foreign investors.

vtdigger.org

Stenger’s attorneys, David Williams and Brooks McArthur, have also subpoenaed several high-ranking state officials from the Shumlin administration to testify at the hearing, a time when the Vermont EB-5 Regional Center was supposed to be monitoring and overseeing the projects led by Stenger and Quiros.

 

[VTKilarney]

Bummer. The state officials will not have to testify.

Top state officials to avoid testifying in EB-5 fraud case

Bill Stenger, Jay Peak’s former CEO and president, has reached an agreement with prosecutors on evidence for his sentencing. The deal nixes a hearing where current and past state leaders

vtdigger.org

 

[AdironRider]

So now that we have reached the throw everyone else under the bus to save your own ass part of the story, has it come out yet how exactly Stenger profited from this whole thing?

I mean, I get how the VT officials would be incentivized, and obviously Quiros, but I still struggle with how Stenger was really making a mint off any of this other than the paycheck he was already getting to begin with.

 

[ScottySkis]

Read down several articles to see about Jay possible ssold today

News roundup: Health Department reports 192 new COVID infections, and two more people have died

Vermont reporters provide a roundup of top news takeaways about the coronavirus, Saturday’s reproductive rights rally and more for Monday, Oct. 4.

www.vpr.org

 

[jimmywilson69]

thanks Scotty!

here's the text for those who don't want to click and scroll

4. Court documents show Jay Peak leaders "actively engaged" in sale discussions​

Jay Peak ski resort's leaders are "actively engaged" in sale discussions with several potential buyers, according to recently filed court documents.

Michael Goldberg, the court-appointed receiver who runs the resort, wrote in Friday's filing that draft purchase agreements have been exchanged — though he didn't say how many.

The process of selling the ski resort ground to a halt last year due to the pandemic. Goldberg restarted the search earlier this year.

Jay Peak has been managed by Goldberg since 2016, after owner Ariel Quiros and developer Bill Stenger were accused of misappropriating more than $200 million from foreign investors.

- Liam Elder-Connors

 

[thetrailboss]

So now that we have reached the throw everyone else under the bus to save your own ass part of the story, has it come out yet how exactly Stenger profited from this whole thing?

I mean, I get how the VT officials would be incentivized, and obviously Quiros, but I still struggle with how Stenger was really making a mint off any of this other than the paycheck he was already getting to begin with.

I believe he had an equity stake in the main entity.

 

[PAabe]

Jay Peak ski resort's leaders are "actively engaged" in sale discussions with several potential buyers, according to recently filed court documents.

gosh anyone but vail or KSL. Hopefully they don't have the cash assets to pull that off right now

Does this also include Burke?

 

[jimmywilson69]

I believe they are separate