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

[Bubba]

Court says some cases against state can be heard.

https://www.wcax.com/2020/07/31/high-co ... -286700865" onclick="window.open(this.href);return false;

[Bubba]

Judge pushes pause on Quiros plea deal in Jay Peak fraud

https://vermontbiz.com/news/2020/august ... -286700865" onclick="window.open(this.href);return false;

[Bubba]

Burke Mountain contests town’s assessed value of $18.7 million.

https://www.mychamplainvalley.com/news/ ... 7-million/" onclick="window.open(this.href);return false;

[Bubba]

Quiros changes his plea to guilty. When do folks like former Governor Shumlin get charged?

https://vermontbiz.com/news/2020/august ... es-8-years" onclick="window.open(this.href);return false;

https://www.mynbc5.com/article/miami-bu ... e/33606599" onclick="window.open(this.href);return false;

[hillbangin]

When do folks like former Governor Shumlin get charged?

That's a rhetorical question correct?

[Bubba]

Town rejects bid to cut Burke property tax 40%

https://vtdigger.org/2020/09/02/town-re ... ill-by-40/

[Bubba]

This scandal, for the lawyers, is the gift that keeps on giving...

Jay Peak receiver’s bill for cleaning up EB-5 scandal now tops $9 million

https://vtdigger.org/2020/11/30/jay-pea ... -286700865

[Big Bob]

Am I of the correct assumption that Jay and Burke are currently owned by the US government? If it doesn't sell and it is owned by the taxpayers why not make them national parks or recreation areas?

[easyrider16]

You are not correct. They are in Bankruptcy and managed by a trustee for the benefit of the creditors who were/are owed money. If the government wanted it for a park, they'd have to buy it like anyone else. The proceeds from the sale would then be distributed to the creditors.

The trustee's fees, incidentally, are paid from the bankruptcy estate, in this case by Jay Peak's operations. Given that they have kept the place in business, they are probably justifiable. They can also derive fees based on a percentage of assets they are able to recover from people who defrauded the company (ie Quiros).

[Big Bob]

You are not correct. They are in Bankruptcy and managed by a trustee for the benefit of the creditors who were/are owed money. If the government wanted it for a park, they'd have to buy it like anyone else. The proceeds from the sale would then be distributed to the creditors.

The trustee's fees, incidentally, are paid from the bankruptcy estate, in this case by Jay Peak's operations. Given that they have kept the place in business, they are probably justifiable. They can also derive fees based on a percentage of assets they are able to recover from people who defrauded the company (ie Quiros).

So you are saying it is now owned by the creditors, correct?

[easyrider16]

Not precisely. Legal title is with the bankruptcy trustee, and he holds the property in trust for the benefit of the creditors. All the trustee's actions in disposing any of the property have to be authorized by the court and can be challenged by interested parties. So it's a bit more complicated than that. That's how we know the trustee's fees, btw, because every dime he gets has to be reviewed and approved by the bankruptcy court.

Bankruptcy is weird and has its own rules, but the alternative is a place like Jay Peak goes under and everyone gets screwed. Bankruptcy attempts to moderate things so everyone gets screwed a little less. It has its faults but it has a lot of benefits.

Sent from my VS995 using Tapatalk

[Mister Moose]

Is legal title with the trustee? My understanding is the trustee has court ordered control, not title. Title will pass from borrower to buyer.

[RENO]

All I wanna know is when any of these jerkoffs quiros, stenger, etc... get locked up.

[easyrider16]

Is legal title with the trustee? My understanding is the trustee has court ordered control, not title. Title will pass from borrower to buyer.

Well, bankruptcy world is weird. There are cases where a debtor can remain in possession and act as a trustee. In that case the debtor retains legal title. In other cases, like liquidations, legal title passes to the trustee.

That said, after looking into it a little more, I was under the mistaken impression that Jay Peak filed for bankruptcy. That's not the case. The SEC sued the corporation for fraud and and the court appointed a receiver to take control of the property. It's similar to the appointment of a bankruptcy trustee, with some differences. The receiver still functions as a fiduciary holding the property for the benefit of creditors, and has the ability to try and recover assets for the benefit of the creditors. To the main question, the receiver typically holds legal title until that passes to the buyer.

[RENO]

A ski resort, a dream and greed: How a $350M fraud happened in Vermont’s poorest region
https://www.yahoo.com/news/ski-resort-d ... 24160.html