Uh oh...Jay Peak owner pulls a fast one on EB-5 investors

[Bubba]

Update article on the issue

http://vermontbiz.com/news/july/jay-pea ... -286323177" onclick="window.open(this.href);return false;

[shortski]

What was done by "Q" (Bill is an employee) was legal. Not only do you need to read what you sign you have to understand it. Was it ethical.....that's for someone with ethics to decide. Bottom line they got what was promised, a green card. As a bonus they are now also guaranteed the return on their "investment" (otherwise know as jumping the citizenship line). If they have a bitch it's with themselves. Mr. Q ain't a Billionaire because he's ethical....it's because he smarter in business. IMHO

[RustyK]

I can remember my mama words [when something looks too good to be true........................]

Thanks..

Now I have this tune stuck in my head..

Mama told me not to come
Mama told me not to come
She said, "That ain't the way to have fun, son"
"That ain't the way to have fun, no"

"That ain't the way to have fun, no"
"That ain't the way to have fun, son"
"That ain't the way to have fun, no"
"That ain't the way to have fun, son"

"That ain't the way to have fun, no"
"That ain't the way to have fun, son"
"That ain't the way to have fun, no"
"That ain't the way to have fun, son"

here you go rusty try this one instead" mama tried to raise me better"

Hush hush, keep it down now, voices carry
Hush hush, keep it down now, voices carry
Hush hush, keep it down now, voices carry
Uh-ah

[Bubba]

More questions, few if any answers...

http://vermontbiz.com/news/october/sens ... -286323177" onclick="window.open(this.href);return false;

http://vermontbiz.com/news/october/who- ... -286323177" onclick="window.open(this.href);return false;

[SnoBrdr]

More questions, few if any answers...

http://vermontbiz.com/news/october/sens ... -286323177" onclick="window.open(this.href);return false;

http://vermontbiz.com/news/october/who- ... -286323177" onclick="window.open(this.href);return false;

Doubt there will ever be any answers.

The "stole" the money with apparently a lack of any oversight by the State.

Seems like a pretty cozy deal to me.

Apparently there was no "bad" money involved from say, Eastern Europe of he'd be in a bit more trouble.

[Mister Moose]

Angie Mann recalls Stenger told them they could expect an annual dividend of $25,000 to $30,000, along with the return of their $500,000, and a $150,000 profit after five years.

That's a 5-6% annual dividend, plus an expectation of a 30% return in 5 years. Has anyone seen a ski resort income statement that showed enough earnings to pay investors this kind of return? (that's a sustained 12% rate of return)

[Dr. NO]

Angie Mann recalls Stenger told them they could expect an annual dividend of $25,000 to $30,000, along with the return of their $500,000, and a $150,000 profit after five years.

That's a 5-6% annual dividend, plus an expectation of a 30% return in 5 years. Has anyone seen a ski resort income statement that showed enough earnings to pay investors this kind of return? (that's a sustained 12% rate of return)

ASC 10 year bonds paid about 6% annual on the $1000 investment, plus you got 5 years with a pass to boot. As passes were approaching the $1000 dollar mark, not a bad investment, until they went under.

[Ski_the_Moguls]

Angie Mann recalls Stenger told them they could expect an annual dividend of $25,000 to $30,000, along with the return of their $500,000, and a $150,000 profit after five years.

That's a 5-6% annual dividend, plus an expectation of a 30% return in 5 years. Has anyone seen a ski resort income statement that showed enough earnings to pay investors this kind of return? (that's a sustained 12% rate of return)

Are you sure it is 6% annual PLUS $150,000? The 6% annual over 5 years adds up to exactly $150,000. I think that $150,000 might be all they are talking about.

Either way, I always interpretted the program as $500,000 buys you a green card. Do not expect anything more! If they were decent investments they would not need to sell a green card along with it.

[Bubba]

Bill Stenger responds...

http://vermontbiz.com/news/november/ste ... -286323177" onclick="window.open(this.href);return false;

[Bubba]

Jay Peak projects under SEC investigation

http://vtdigger.org/2015/06/24/jay-peak ... -286323177" onclick="window.open(this.href);return false;

[Highway Star]

Jay Peak projects under SEC investigation

http://vtdigger.org/2015/06/24/jay-peak ... -286323177" onclick="window.open(this.href);return false;

Yeah.......I would think the SEC frowns on this sort of thing, especially when people are abusing a government program and making the country look bad to foreign investors.

[Highway Star]

On a side note, Killington needs to have some ponzi schemers come in and build a half dozen lifts for us. Can anyone make that happen...?

[Bubba]

The saga continues....


http://vtdigger.org/2015/10/27/dissiden ... -286323177" onclick="window.open(this.href);return false;

[Bubba]

Not sure what to make of all this...

First Jay, now at Burke - Bill Stenger continues to run into issues with EB-5 accounting.

State freezes Q Burke investor account


http://vtdigger.org/2016/04/04/state-fr ... -286323177" onclick="window.open(this.href);return false;


And, in other Stenger related EB-5 news Newport biotech EB-5 investors want their money back, documents show

http://vtdigger.org/2016/04/04/newport- ... -286323177" onclick="window.open(this.href);return false;

[freeski]

I don't claim to understand what is going on up there, but when the managers took ownership of the hotel (I think) and gave the investors IOUs that stunk to high heaven. It seems there are not a lot of rules with the program and people running the program are taking advantage of this. Even though the State of VT doesn't appear to have the expertise to regulate the program I give them credit for freezing assets until they can straighten things out.