Receiver Overseeing Jay Peak And Burke Mountain Reaches Deal With Creditor
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The government-appointed receiver overseeing operations at Jay Peak and Burke Mountain, following federal and state fraud accusations filed against the resorts’ co-owners last spring, has reached a $13.3 million settlement agreement with Citibank that the receiver says will continue to fund operations at both Vermont ski and snowboard resorts.
It will also allow most of the contractors who built the recently opened Burke Mountain Hotel & Conference Center to finally get paid, receiver Michael Goldberg indicates, although $3.5 million of that debt would remain outstanding according to the Vermont State Agency of Commerce and Community Development secretary. A federal court hearing has been set for October 20 in Miami to seek court approval of the settlement.
In April, Vermont and federalSecurities and Exchange Commission (SEC)officials each filed civil lawsuits against resort co-ownersBill StengerandAriel Quiros, alleging that the two men used the EB-5 Immigration Visa program to defraud foreign investors in the resorts’ expansion in what they’ve termed a “ponzi-like scheme.” They’re accused of diverting roughly $200 million to other projects not associated with the investment, while Quiros, of Miami, has also been accused of using another $50 million of the money as his own personal slush fund to pay personal expenses including $2 million to purchase an apartment at Trump Place in New York.