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
All gifts matched to keep Vermonters warm and informed – VTDigger
Dear Readers,
There are just days left in our Warmth Support Program partnership, and right now, your gift can do double duty for Vermont.
Until midnight on Dec. 25, every donation is matched dollar for dollar and helps provide two days of emergency heat to a Vermont household in need through the Warmth Support Program of Vermont’s Community Action Agencies.
Local news helps Vermonters understand what’s changing on the local, state and federal level — and how to respond. VTDigger delivers daily and investigative news that you can rely on year round. This work takes resources, and it’s powered directly by our readers.
At the same time, thousands of households in Vermont are struggling to afford basic heat right now. The community-funded Warmth Support Program of Vermont’s Community Action Agencies fills critical gaps when other fuel assistance isn’t available. Funds go directly to fuel suppliers to prevent shutoffs and keep families from running out of heat.
If you’re able, please make a gift that’s meaningful to you before midnight on Dec. 25 and it will be matched! Plus it will warm homes.
Thank you for helping connect Vermonters to the information and resources we need to look out for one another this season.
Sincerely,
Libbie Sparadeo
Director of Membership and Engagement, VTDigger
P.S. If you or someone you know needs heat assistance, you can learn more about the Warmth Support Program and find contact information here.

The donation to the Warmth Support Program of Vermont’s Community Action Agencies is generously underwritten by our partnership sponsor, Vermont Gas, so that 100% of your gift to VTDiggers supports our newsroom.
Vermont
Nine Vermont dams were removed in 2025. There are many more to go. – VTDigger
There are at least 140 dams in the Winooski River watershed, according to Michele Braun, executive director of the Friends of the Winooski River. Three of those dams help with flood control. Fifteen provide hydropower. A “handful” contribute to local recreation.
But the rest? They “aren’t doing anything but causing trouble,” Braun said.
“The great majority of those dams serve no purpose and are a public safety hazard, as well as bad for the river health and fish,” she said.
Braun helped lead an effort to remove two dams in Barre City and Barre Town this year, part of a decades-long effort to get rid of derelict or harmful dams along Vermont’s waterways. According to the Vermont Natural Resources Council, local and regional organizations removed nine dams this year, the most in a single year, reconnecting 125 miles of river.
More than 80 dams have been removed since the 1980s, some of which were more than a century old, said Karina Dailey, science and restoration director for the council, who also chairs the Vermont Dam Task Force.
There are plenty more to go. Vermont’s dam safety program and local watershed partners have identified 47 dams that would be good candidates for removal, along with 27 active projects at different stages of preparation for removal and 12 projects that have stalled, according to a task force report.
Dam removals have gained urgency in recent years as Vermont communities have been battered by repeat floods. An increasing body of research shows that some dams can worsen flooding. Five dams failed during flooding in 2023, sustaining heavy damage, according to state investigators.
Removing dams can also benefit the local ecosystem, improve water quality and improve recreational opportunities for swimmers and boaters, according to the task force’s website.
But dam removals can be a long and arduous process. The first challenge, Dailey said, is getting the dam owners on board. Many of the dams pegged for potential removal are privately owned, and the landowners have no obligation to participate in the process.
Braun said that one of the dams her organization removed this year was owned by Trow and Holden Co. Initially, the owners expressed an emotional attachment to the dam, which was built in the 1800s and powered a factory that manufactured tools for the granite industry. Braun won them over by showing how getting rid of the dam would lower the flood elevation behind their building and make the river more predictable in the future.
Dailey said the “silver lining” of the 2023 flood is that landowners are now “connecting the dots between the flood hazard in their yard of owning this dam, and not wanting to be liable for impacting downstream infrastructure or communities.”
 100vw, 1200px”/><figcaption class=)
She gave the example of a dam failure in Williamstown that caused “quite a lot of damage.”
“The landowner had to do an emergency breach to stabilize the project because we couldn’t remove it fast enough to get all the funding and the permits,” she said. The task force is hoping to get the dam removed sometime next summer.
Dam removals tend to be more complex than other infrastructure projects, requiring specialized construction companies and a variety of permits, Braun said. The state also sets a hard stop: All river projects have to be finished by October.
Although removal projects can benefit the local flora and fauna, they can also cause short-term upheaval to animal habitats and vegetation. Lindsey Wight, executive director of the Missisquoi River Basin Association, said that the crew removing the Sleeper Pond Dam in Newport had to carefully relocate snapping turtles.
 100vw, 1200px”/><figcaption class=)
“We got to dive into the muck and get a couple of turtles and bring them up Mud Creek a little bit farther to just sort of keep them out of the way,” she said.
Greg Russ, restoration director of the White River Partnership, said the organization had to plan their use of heavy equipment around the local bat roosting season when they removed the Farnham Bros. dam in Tunbridge. The crew also had an archeologist on site throughout the project documenting any details uncovered about the roughly 100-year-old dam for future researchers.
Dailey said she was glad to see so many projects move forward this year despite the chaotic situation at the federal level. The federal government froze funding specifically for dam removal that had already been committed in February, and for a while the task force thought those projects might not happen at all.
Although the funding has since been restored, lining up grants and loans for new projects is an ongoing challenge, Dailey said. At the Army Corps of Engineers, one of the most important Vermont staffers took a federal buyout and hasn’t been replaced, she said. Cuts to the Federal Emergency Management Agency have left it short-staffed, slowing down approval for a dam removal in Northfield.
“The money supposedly is still there and hasn’t gone away, and the project will still move forward,” Dailey said. “But there’s just not enough staff to review it to keep it moving along.”
She said she expects the Trump administration’s actions will affect funding for years down the line, impacting the possibility of future projects.
In the meantime, the waterways that had dams removed this year will slowly change as they adapt to the new shape of the landscape.
“Really the first five years is where the river is sort of just creating its natural channel, and it meanders a lot,” Dailey said.
“You watch a rain event, and the river just starts moving and meandering more and more,” she said. “And that’s really exciting, because that’s what rivers do, how rivers function.”
Braun noted one immediate benefit of the Trow & Holden dam removal. At the kickoff meeting for the removal, her team spotted a dozen trout swimming right up behind the dam.
“We were all so excited to see them, because soon they would be able to be connected to the rest of the river system,” she said.
Vermont
Vermont congressional delegation nominates 23 students for military academies
MONTPELIER, Vt. (WCAX) – Vermont’s congressional delegation nominated 23 students for military academy appointments Saturday, with the applicants speaking to lawmakers about their goals to serve the country.
Senators Peter Welch and Bernie Sanders, along with Representative Becca Balint, met with the nominees at the Statehouse to discuss their motivations for military service.
“You’ve made a decision that life is better when you’re helping others,” Welch said.
Balint told the students that regardless of whether they are accepted, being nominated is significant.
“Whatever happens whether you’re accepted or not being here, today is a really big deal,” Balint said.
Many nominees said they want to be part of something bigger than themselves and protect the ideals the country was built on, according to reporter observations from inside the event.
“That was a very interesting message that came from the young people,” Sanders said.
Welch said the students were motivated by teamwork, service and giving back.
One nominee said the reason that motivated them to serve is wanting to be a doctor.
Francis Robinson, a Merchant Marine applicant, said he wants to be the captain of a ship one day.
“All the books I’ve read since I was a kid have all been sea stories and I just want to be a part of that,” Robinson said.
Grady Gallagher, an Air Force applicant, said he wants to protect the people he loves and replicate the feeling of camaraderie he felt through football.
“I just want to be exceptional,” Gallagher said.
Many families attended the ceremony to support the nominees. Jamie and Sarah Gallagher, Grady’s parents, said they felt proud hearing their son’s answers.
“Seeing that he’s ready to take on the world and really be a leader of this next generation is really awesome,” Jamie Gallagher said.
Beck Welch, an Air Force applicant, called it a special moment.
“This is a very special moment for me and all of us and I think we’ve all worked very hard to be here,” Welch said.
Robinson said the experience was unique and one he will remember forever.
Sanders wished the nominees the best of luck and said Vermont has a long history of dedicated military service.
“I know they’re going to continue that tradition,” Sanders said.
Copyright 2025 WCAX. All rights reserved.
-
Iowa1 week agoAddy Brown motivated to step up in Audi Crooks’ absence vs. UNI
-
Iowa1 week agoHow much snow did Iowa get? See Iowa’s latest snowfall totals
-
Maine6 days agoElementary-aged student killed in school bus crash in southern Maine
-
Maryland1 week agoFrigid temperatures to start the week in Maryland
-
South Dakota1 week agoNature: Snow in South Dakota
-
New Mexico5 days agoFamily clarifies why they believe missing New Mexico man is dead
-
Detroit, MI7 days ago‘Love being a pedo’: Metro Detroit doctor, attorney, therapist accused in web of child porn chats
-
Education1 week agoOpinion | America’s Military Needs a Culture Shift