Vermont Received Indication Of Alleged EB-5 Fraud In 2014

Broadcast on Vermont Public Radio

vacant white warehouse on a wooded lot, with blue skies above
The proposed site of AnC Bio in Newport, Vt., remains vacant. The US Securities and Exchange Commission says the bio-tech project has been “rampant with fraud” from the start. Photo by Hilary Niles/VTDigger

Vermont Public Radio has found that, despite ongoing investigations, Gov. Peter Shumlin’s administration in 2015 allowed Jay Peak Resort to resume marketing securities to fund offshoot developments AnC Bio and Q Burke Mountain in northern Vermont.

The move that returned Jay Peak owner Ariel Quiros and president Bill Stenger to the international market came months after investors sent concerns of securities violations to the state. The men now face state and federal fraud charges, which they deny. The resorts remain open under federal receivership.

Officials say the decision was a “calculated risk” that included solid protections — for investors and the contractors halfway into constructing a $98 million hotel.

// Listen here and read the full story, plus related documents. 

// Listen to my appearance on the statewide talk radio program Vermont Edition to discuss the investigation.