Stenger and Quiros Ousted from Management of Jay Peak and Burke

[deadheadskier]

Until folks see the balance sheets over the course of a five year period as this business does ebb and flow with weather and economic trends, I honestly don't see a point in speculating based off a couple VTDigger articles.

Doing victory laps based upon the limited information still available is a bad look even if it makes your ego warm.

 

[thetrailboss]

http://vtdigger.org/2016/08/08/rece...il&utm_term=0_dc3c5486db-248bbf3602-405558657

 

[VTKilarney]

Until folks see the balance sheets over the course of a five year period as this business does ebb and flow with weather and economic trends, I honestly don't see a point in speculating based off a couple VTDigger articles.

Doing victory laps based upon the limited information still available is a bad look even if it makes your ego warm.

You are trying to make something where nothing exists. I merely pointed out that many people believed that during the past couple of years, thanks to EB-5 improvements, they have made money in the summer. That's all. Nobody was speculating about the future.

 

[thetrailboss]

My understanding was that the terrible winter, the expensive Tram fix, and other unexpected costs have made this year a challenge. I am not at all surprised that they needed short-term financing to get through the period. In fact, Steve Wright said in an interview back in May that Jay, like other resorts, always took out financing for summer and lean times and this year was having trouble getting it.

As to the long term trends over the last few years, it is anyone's guess. Only Q and Stenger really know.

 

[BenedictGomez]

You are trying to make something where nothing exists. I merely pointed out that many people believed that during the past couple of years, thanks to EB-5 improvements, they have made money in the summer. That's all. Nobody was speculating about the future.

Yup, and there's just no way that's possible given the following:

Goldberg said in an interview that the resort typically relies on surplus monies from winter ski receipts to hold the resort over the off-season that runs from May to October. But this year, because of the fraud and lack of snow, Jay Peak didn’t have the $7 million to $8 million in cash it needed to adequately fund operations this summer. In addition, the resort needed $5 million in repairs to the tram, which ferries tourists to the top of Jay Peak.

There's little ambiguity around the word, "typically", and there's not a snowball's chance in hades JP brings in > $7M or $8M from May to October for a breakeven. Not happening.

 

[mbedle]

New report on this...

https://jaypeakreceivership.com/wp-..._Receivers_First_Interim_Report_8-12-16-1.pdf

Apparently Stenger owns Burke Mountain Resort with Quiros. Apparently Burke Mountain Resort is owned by Q Burke LP, with a General Partner being Q Burke GP with general partners Stenger and Quiros.
Direct from report - Burke's level of competency and controls were severely lacking with the exception of a few individuals. Almost all senior management at Burke was terminated and Burke's operations were completely reorganized...

 

[steamboat1]

http://vtdigger.org/2016/08/15/jay-peak-receiver-hires-attorney-lobby-congress-eb-5-changes/

 

[thetrailboss]

http://vtdigger.org/2016/08/15/jay-peak-receiver-hires-attorney-lobby-congress-eb-5-changes/

Thought that was an interesting article. In particular because the Receiver is lobbying Congress to allow the investors to get their Visas...even if their project did not even start (AnCBio).

And someone in the biz answer me this: why are EB-5 programs in particular so ripe for fraud? Is it simply because people can raise a sh^*-ton of money with little or no oversight at all?

I believe that the article also said that the Receiver is considering suing the Feds. What about the State of Vermont?

 

[SIKSKIER]

Ann Galloway needs to be given an award for her articles in this day of media manipulation.Great work.

 

[thetrailboss]

Ann Galloway needs to be given an award for her articles in this day of media manipulation.Great work.

She has requested, and reviewed, thousands of pages of documents in her reporting on this whole thing. Unreal.

 

[dlague]

http://vtdigger.org/2016/08/15/jay-peak-receiver-hires-attorney-lobby-congress-eb-5-changes/

Wow this has a lot more detail about what was or is be seized.

 

[mbedle]

Thought that was an interesting article. In particular because the Receiver is lobbying Congress to allow the investors to get their Visas...even if their project did not even start (AnCBio).

And someone in the biz answer me this: why are EB-5 programs in particular so ripe for fraud? Is it simply because people can raise a sh^*-ton of money with little or no oversight at all?

I believe that the article also said that the Receiver is considering suing the Feds. What about the State of Vermont?

Given the amount of money generated by the EB-5 program over the years, I wouldn't consider it particular so ripe for fraud. When you compare the amount of money involved in EB-5 fraud cases with other cases of fraud in the US, its really very small. Think of Enron - 78 Billion and Bernie - 65 Billion fraud cases. But I do agree that the fraud takes place because of lack of oversight and also that the money is coming from individuals that are not Americans, nor located here. I think there is sort of a attitude that "hey, they got their visas, who gives a crap about the return..."

 

[mbedle]

I wonder how the class action lawsuit is going to work out for the investors. I could see the investors in the first couple projects, electing to opt out of it since their projects are up and running. Albeit, those projects were completed with money stolen from the later projects. You would also think that if they do file claims against everyone and anyone to recover their money and it ultimately is going to hurt the receivership in recover of money also. Kind of seems counter-intuitive.

 

[thetrailboss]

Given the amount of money generated by the EB-5 program over the years, I wouldn't consider it particular so ripe for fraud. When you compare the amount of money involved in EB-5 fraud cases with other cases of fraud in the US, its really very small. Think of Enron - 78 Billion and Bernie - 65 Billion fraud cases. But I do agree that the fraud takes place because of lack of oversight and also that the money is coming from individuals that are not Americans, nor located here. I think there is sort of a attitude that "hey, they got their visas, who gives a crap about the return..."

True that the dollar amounts are not the same, but this is as least the second major fraud case with EB-5 projects in a relatively short amount of time. The Chicago scam was pretty bad.

 

[fbrissette]

Given the amount of money generated by the EB-5 program over the years, I wouldn't consider it particular so ripe for fraud. When you compare the amount of money involved in EB-5 fraud cases with other cases of fraud in the US, its really very small. Think of Enron - 78 Billion and Bernie - 65 Billion fraud cases. But I do agree that the fraud takes place because of lack of oversight and also that the money is coming from individuals that are not Americans, nor located here. I think there is sort of a attitude that "hey, they got their visas, who gives a crap about the return..."

On this side of the border, a fraud in the 30 millions range would be qualified as a major fraud.

 

[JimG.]

On this side of the border, a fraud in the 30 millions range would be qualified as a major fraud.

I guess we like our fraud big here in the US.

 

[steamboat1]

I wonder how the class action lawsuit is going to work out for the investors. I could see the investors in the first couple projects, electing to opt out of it since their projects are up and running. Albeit, those projects were completed with money stolen from the later projects. You would also think that if they do file claims against everyone and anyone to recover their money and it ultimately is going to hurt the receivership in recover of money also. Kind of seems counter-intuitive.

From the article:

Another 300 investors have already received permanent green cards, but Goldberg says their immigration status could also be in jeopardy. The U.S. Customs and Immigration Service can, for up to five years from the date a permanent green card is issued to EB-5 investors, revoke permanent residency. Goldberg says correspondence from USCIS indicates the feds are questioning the improper transfer of money among the Jay Peak entities and whether investors’ investments have resulted in the requisite job creation

 

[mbedle]

Today is the deadline for Stenger to file a motion with the SEC or reach a settlement. I would guess that if he gives up his ownership in all the GPs and the Burke ski resort, pay a fine, become a witness for the SEC, they will reach a settlement.

 

[steamboat1]

Today is the deadline for Stenger to file a motion with the SEC or reach a settlement. I would guess that if he gives up his ownership in all the GPs and the Burke ski resort, pay a fine, become a witness for the SEC, they will reach a settlement.

http://vtdigger.org/2016/08/19/jay-peak-ceo-asks-court-filing-extension/

Stenger has been cooperating with the SEC over the past four months and remains a fixture at the resort where he issues memos to staff, ushers guests and potential new investors around and draws a $100,000 a year salary. In addition, he uses a condo at Jay Peak, drives a luxury Audi paid for by the resort, and fills up his gas tank with company petrol.

 

[mbedle]

http://vtdigger.org/2016/08/19/jay-peak-ceo-asks-court-filing-extension/

Stenger has been cooperating with the SEC over the past four months and remains a fixture at the resort where he issues memos to staff, ushers guests and potential new investors around and draws a $100,000 a year salary. In addition, he uses a condo at Jay Peak, drives a luxury Audi paid for by the resort, and fills up his gas tank with company petrol.

And your point is?