Judge Ok's Payment Option For unpaid EB-5 Contractors, Subcontractors
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Many of the contractors and subcontractors owed money for their work on EB-5 funded developments projects in Vermont’s Northeast Kingdom will soon have a decision to make about how they will start getting paid.
Michael Goldberg, the court-appointed receiver overseeing the properties following allegations of massive fraud against project developers in April, filed a motion Tuesday laying out the plan to start paying contractors and subcontractors some of the money they are owed. Judge Darrin P. Gayles approved it late Wednesday afternoon.
The companies can opt to get paid for 33 percent of what they are owed, and hope they will be made whole in the future with proceeds from the sale of the property where they performed work. Or, according to the filing, they can take a onetime 60 percent payment now of their total bill, and write off the other 40 percent.
“(T)he Receiver intends to immediately contact each Stateside and Q Burke contractor with an undisputed claim to select the option it prefers,” Goldberg wrote in the filing, “and upon receiving written confirmation from each contractor, the Receiver intends to issue immediate payment based on such chosen option.”