Vermont
Auditor finds state bungled oversight of Jay Peak EB-5 projects in massive fraud
State Auditor Doug Hoffer released a 69-page report on the Jay Peak EB-5 fraud last week that finds state oversight of foreign investor funded projects in the Northeast Kingdom was marked by “misplaced trust, unfortunate decision-making, lengthy delays and missed opportunities to prevent or minimize fraud.”
The Jay Peak fraud is the largest in Vermont’s history and involved hundreds of investors from around the world who were offered a path to a Green Card in exchange for a $500,000 investment to create jobs in an economically depressed region of the United States − in this case Vermont’s Northeast Kingdom − under the federal EB-5 program.
Jay Peak President Bill Stenger traveled the world to meet with investors, ultimately raising about $400 million for eight projects at Jay Peak and Burke Mountain ski resorts, as well as in Newport. Federal prosecutors found more than $200 million of those funds were misused, with up to $37 million going into the pocket of Jay Peak owner Ariel Quiros.
Quiros attorney Bill Kelly was found to have received up to $4 million in investors’ money that was “not legitimately earned.” Both Quiros and Kelly pled guilty to a multi-year wire fraud scheme and concealing material facts in a matter within the jurisdiction of a federal agency. Quiros also pled guilty to money laundering.
Stenger pled guilty to a single felony count of knowingly and willfully submitting false documents to the Vermont Regional Center (VRC), the state-sponsored entity through which all EB-5 projects were approved. Stenger was not convicted of illegally taking investors’ money, but the government argued he too had a financial motive beyond the “glory” of delivering unprecedented economic development to the Northeast Kingdom, as he was expecting to receive a stake in Jay Peak Resort, as well as more than $1 million from another EB-5 project in Newport.
“Three individuals were ultimately convicted of felony offenses related to the fraud, the State’s reputation was bruised by national press coverage, and in July Vermont taxpayers learned they would foot the $16.5 million bill of a global settlement reached between the Vermont Attorney General and a group of EB-5 investors,” Hoffer wrote in a newsletter accompanying the release of the report.
‘Structural design flaw’ sets state up for mishandling oversight of Jay Peak EB-5 projects
The Vermont Regional Center gave a veneer of legitimacy to the Jay Peak EB-5 projects that Hoffer said was ultimately unjustified because of a “structural design flaw” in the way the VRC was set up.
When the Vermont Regional Center was created, oversight was given to the Agency of Commerce and Community Development, which had an immediate conflict of interest, as it was both promoting the EB-5 program and regulating it. To make matters worse, then Gov. Peter Shumlin participated in a promotional video for Jay Peak in which he said the state was auditing the resort’s EB-5 projects, which was not the case.
Hoffer reports the ACCD didn’t find out about the video until two years after it was being shown to potential foreign investors “with this misleading and confusing claim about the State’s due diligence.”
More: A ski resort, a dream and greed: How a $350M fraud happened in Vermont’s poorest region
“The (Vermont Regional Center) did not print a retraction on its website to clarify that the State was not performing financial audits of EB-5 projects, but instead merely reviewing and signing off on project-related employment data,” Hoffer wrote in his newsletter.
$13 million in missing EB-5 funds fails to trigger investigation by state authorities
Hoffer said the state also failed to require audits when concerns about Jay Peak’s EB-5 projects were raised by Douglas Hulme of Rapid Visas USA, a Florida firm that created and promoted the original Jay Peak securities offering materials. Rapid Visas ended its relationship with Jay Peak in 2012, saying it no longer had confidence in the accuracy of representations made by Jay Peak or in the financial status of and disclosures of the partnerships.
“In a telephone call the firm told the ACCD Secretary (Lawrence Miller) that $13 million was missing from Jay Peak’s bank accounts,” Hoffer wrote. “The hint of fraud offered an opportunity for ACCD to seek help from the (Vermont Department of Financial Regulation). They didn’t.”
Instead, Hoffer wrote, Miller asked Stenger about the allegations.
“Stenger denied them and offered records in defense,” Hoffer wrote. “The ACCD Secretary said he was satisfied with the documentation Stenger provided and dropped the matter. With so much at stake, though, due diligence should have included more than a review by a non-auditor of records hand-selected by Stenger. In fact, the U.S. Attorney later determined that the records Stenger provided covered up how the defendants misused investor funds.”
Hoffer: There are other situations where state agencies have conflicts of interest that could cause problems
The ACCD didn’t involve the Department of Financial Regulation in oversight of the Jay Peak EB-5 projects until late in December 2014. Once the DFR began investigating, along with the U.S. Securities and Exchange Commission, the massive fraud in the Northeast Kingdom began to unravel, leading to the convictions of Quiros, Stenger and Kelly.
“Unfortunately, EB-5 is not the only program for which Vermont’s state government has assigned a state agency duties that present similar conflicts,” Hoffer concludes in his newsletter. “Farm-based water quality combines both promotion and enforcement in the Agency of Agriculture, Food and Markets. Economic development grants are frequently promoted, then reviewed and funded, by ACCD.”
Hoffer calls on state officials and legislators to “dedicate themselves to reforming system flaws like these wherever they occur.”
Contact Dan D’Ambrosio at 660-1841 or ddambrosi@gannett.com. Follow him on X @DanDambrosioVT.
Vermont
Guster’s singer volunteers for ‘most magical thing on earth’ with 12-hour dance in Lincoln
Ryan Miller learned of Zeno Mountain Farm a half-dozen years ago from his Guster bandmate Luke Reynolds, who had recently moved to Lincoln in Addison County.
It was a camp in town, Reynolds told Miller, geared toward helping people with disabilities. Year-round, folks with and without disabilities worked on an even plane to put on shows, all for free. Miller went to one of Zeno Mountain Farm’s annual plays, the musical “Best Summer Ever,” and discovered a “gateway drug” that has kept him in the world of Zeno Mountain ever since.
“When I walked in there and saw the play and saw this place and saw this community, I was like, ‘Well, this is the most magical thing on earth,’” said Miller, who lives in Williston. “It feels like science fiction.”
Miller corralled many of Vermont’s highest-profile musicians to perform Nov. 16 in a 12-hour dance marathon at Zeno Mountain. The fundraiser was expected to raise about $100,000, said Peter Halby, who founded the nonprofit camp with his family. That totals roughly a sixth of the organization’s annual budget.
“We take care of each other together,” Halby said in describing Zeno Mountain’s mission. “We really want to push the definition of inclusion.”
A sense of community in Lincoln, Vermont
As the org says online, Zeno Mountain Farm aims to support “people with disabilities, cancer and traumatic brain injuries, along with veterans, people in recovery and ever-expanding kindred groups.”
The group had roots in California before moving to Lincoln in 2008. The next summer came Zeno Mountain’s first monthlong summer camp, and over time, the team “realized the Zeno model worked to create a society without margins for everyone.”
Of the hundreds of people involved in Zeno Mountain Farm, only four staff members are paid regularly. No one pays to attend. There are no distinctions between counselors and campers. Everyone works together to put on plays and concerts and travel “to all of the sweet spots of Vermont,” Halby said.
Zeno Mountain strives to avoid defining those with disabilities as “almost less-than,” Halby said.
“It’s just like one element of who they are,” he said.
Zeno Mountain Farm offers about 15 residential camp sessions a year totaling nearly 100 days, Halby said, with 50 to 100 people in attendance per session. He said the goal is to invite the same people every year, building a sense of community for those who often bounce around between homes and otherwise miss the thread of togetherness.
“People go back every year,” Miller said. “It really becomes this family, like a real family.”
Zeno Mountain Farm exists “on this incredible network of volunteers,” Halby said. “It’s hundreds of people, hundreds of Vermonters.”
Miller is one of those Vermonters.
“He has taken this on,” Halby said of Miller and his work on the upcoming dance marathon. “He’s so into it. He gets Zeno. He’s such a light and so great at this, and he pours his heart into it.”
Guster singer gets to work
When he saw his first play at Zeno Mountain, Miller was struck by how there was no delineation between actors with or without disabilities. If an actor had trouble speaking a line, they were given the space to speak it. A performer with trouble walking would have someone walking with them. It seemed to Miller to be a place with no race, no age, no particular ability or disability, no hierarchy.
“It’s so hard to be cynical within the walls of the place,” he said.
Miller has been coordinating performers for the half-day dance marathon. Vermont musicians including Brett Hughes, Lowell Thompson, Troy Millette, Matt LaRocca, Mark Daly (Madaila), Eric Maier (formerly of Madaila), Sadie Brightman and James Kolchalka are scheduled for this year’s event.
Miller — who seems to know everyone connected to Vermont’s music scene and many not — is so into Zeno Mountain that the man, who spends months every year on the road with his rock band, has agreed to serve as a board member for the organization.
“I’m not a fundraiser kind of guy,” Miller said. “I don’t want to come in as, like, Daddy Warbucks. What I can do is come in and try to connect people.”
Miller said he aims to be optimistic about life. Zeno Mountain Farm, he said, helps him feel good about humans.
“I think you take that outside of Zeno,” Miller said. “It serves as ballast in my moral maneuverings.”
If you go
WHAT: Zeno Mountain Farm annual dance marathon fundraising event
WHEN: 1 p.m., Saturday, Nov. 15-1 a.m. Sunday, Nov. 16
WHERE: Zeno Mountain Farm, 950 Zeno Road, Lincoln
INFORMATION: To donate, sponsor a dancer or take part in the dance marathon, visit zenomountainfarm.org or fundraise.givesmart.com/e/aahyTg?vid=1muq04
Contact Brent Hallenbeck at bhallenbeck@freepressmedia.com.
Vermont
VTDigger joins forces with FRONTLINE to investigate the aftermath of Vermont’s severe flooding – VTDigger
FRONTLINE, PBS’s investigative documentary series produced at GBH in Boston, has selected VTDigger for a yearlong reporting partnership to examine the aftermath of Vermont’s severe flooding and the federal government’s shifting response to natural disasters.
Emma Cotton, who has served as VTDigger’s environmental reporter before becoming a senior editor, will lead the project’s reporting. Her work, as part of FRONTLINE’s Local Journalism Initiative, will investigate how this extreme weather has affected our residents, housing situation, farms, businesses and landscape.
“Our goal will be to investigate why some Vermont communities are struggling to recover from the floods and how they could be better supported in getting back on their feet,” said Geeta Anand, VTDigger’s editor-in-chief. “We will do this in conversation with people in these communities so that our reporting is deeply informed by those most affected by the floods.”
VTDigger is one of seven newsrooms selected for FRONTLINE’s Journalism Initiative. Digger will team up with Blue Ridge Public Radio and The Texas Newsroom (the collaboration among NPR stations in the state), providing in-depth coverage of the impact and recovery efforts as we grapple with worsening weather and increased destruction.
“I’m so grateful to have FRONTLINE’s support, which enables us to dedicate a new level of resources to one of the most important stories in the state,” Cotton said. “I look forward to giving this story my complete attention over the next year, and I’m eager to connect with Vermonters across the state to understand how flooding has affected them and their communities.”
Vermont, long cast as a climate haven, is struggling to recover from back-to-back major flooding events, never mind prepare for the next ones. For each of the past three years, extreme flooding has taken place on the same day, July 10.
Small, rural towns, like those in southern Vermont and the Northeast Kingdom, have tiny, sometimes volunteer governments with limited capacity to plan for floods. Some of these towns are currently grappling with millions of dollars in debt — doubling their annual budgets in some instances.
“So many of us were personally affected by these floods — my road washed out two years in a row, and my former Montpelier business was destroyed in 2023,” said Sky Barsch, VTDigger’s CEO. “I know firsthand how vital it is to have deep, sustained reporting on what recovery entails. Under Geeta Anand’s leadership and with Emma Cotton’s excellent reporting, VTDigger is proud to partner with FRONTLINE to bring these stories to light.”
If flooding touched your home, business or town, please share your story (anonymous is OK) to help guide our reporting.
Vermont
A Civil War painting is unveiled at the Statehouse. Thank the social studies teacher who ‘found’ it. – VTDigger
This story by Tom McKone was first published in The Bridge on Nov. 6, 2025.
While doing research about the Civil War, Champlain Valley Union High School social studies teacher Tyler Alexander found an image of an 1872 painting by Julian Scott titled “The 4th Vermont Forming Under Fire,” which he hoped to include in a new book.
The problem was, at least initially, it appeared that no one in Vermont knew the painting even existed.
Internet searches were no help, and it was a few months before Alexander got his first good lead. Years ago, a Texas insurance company asked Vermont art historian Robert Titteron, who had written a book about Julian Scott, to appraise the value of the painting Alexander was seeking, and he still had the written communications. The last known owner was the University of Houston — and not only did the university still have the painting, it was about to auction it off.
Alexander quickly contacted David Schutz, the Vermont State Curator, who immediately contacted Vermont historians Howard Coffin and Kevin Graffagnino. With less than a week before the auction, there was no way to secure state money, so Coffin and Graffagnino asked Vermont Country Store owner Lyman Orton, who owns the largest private collection of Vermont art, for help.
Orton won the bidding for the painting and agreed to lend it to the state for display in the Statehouse’s Cedar Creek Room, which already had four other Civil War paintings by Scott, including “The First Vermont Brigade at the Battle of Cedar Creek, Oct. 19th 1864,” a 10-by-20-foot mural commissioned by the legislature and unveiled in 1874.
Skip forward 151 years, to Oct. 29, 2025, and an unveiling that brought Alexander, Orton, Coffin, Schutz, Graffagnino, a uniformed contingent from Vermont’s Civil War Hemlocks, and scores of other Vermonters to the Cedar Creek Room.
Alexander read a vivid description of the battle from one of the letters in his book, Coffin described the battle portrayed in the painting, Orton talked about his affinity for Vermont art, and Schutz reminded everyone that the Statehouse opened only two years before the Civil War started, and was, in a sense, baptized by that event.
A native of Johnson, Vermont, 15-year-old Scott joined the war as a drummer and fifer. He made camp and battle sketches during the war, and after it, he became a trained artist. Not only is his newly discovered painting on display at the Statehouse — it is also on the cover of Alexander’s new book, “If I Can Get Home This Fall: A Story of Love, Loss, and a Cause in the Civil War” (University of Nebraska Press 2025).
-
Nebraska6 days agoWhere to watch Nebraska vs UCLA today: Time, TV channel for Week 11 game
-
Austin, TX1 week agoHalf-naked woman was allegedly tortured and chained in Texas backyard for months by five ‘friends’ who didn’t ‘like her anymore’
-
Hawaii6 days agoMissing Kapolei man found in Waipio, attorney says
-
Vermont3 days agoNorthern Lights to dazzle skies across these US states tonight – from Washington to Vermont to Maine | Today News
-
Southwest7 days agoTexas launches effort to install TPUSA in every high school and college
-
New Jersey5 days agoPolice investigate car collision, shooting in Orange, New Jersey
-
World1 week agoIsrael’s focus on political drama rather than Palestinian rape victim
-
West Virginia3 days ago
Search for coal miner trapped in flooded West Virginia mine continues for third day