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
With two major vacancies, who will lead the Vermont House and Senate? – VTDigger
Two empty seats
The leaders of both the Vermont House and Senate will not be running for reelection. So who will fill their shoes?
Senate Majority Leader Kesha Ram Hinsdale, D-Chittenden Southeast, said she’s running for Senate president pro tempore.
Ram Hinsdale has served in the legislature for 14 years and is the first woman of color to serve in the Senate.
“I have seen so many types of leadership, so many tools in the toolbox that you can use to move people in the same direction,” she said.
While spending more than a decade in the Legislature, Ram Hinsdale said she’s lived through many crises and charted the state’s path through them. She was a lawmaker during the Great Recession, the Covid-19 pandemic and two years of record breaking floods.
With multiple long-serving legislators retiring this year, Ram Hinsdale said she thinks she will bring needed institutional knowledge and experience, along with a willingness to rally new people.
Along with Ram Hinsdale, lawmakers have eyed Sen. Andrew Perchlik, D/P-Washington, who currently chairs the Senate Appropriations Committee, as a future pro tem.
Perchlik said Friday that he’s considering running for the position, though he didn’t want to definitively say until after the primary election in August.
“I’ve been approached by many senators asking me to do it,” Perchlik said. And he said he thinks it makes sense, given his past leadership roles as the whip for the majority party in the Senate and his former role as chair of the Senate Transportation Committee.
Perchlik has chaired the appropriations committee for the last two years, receiving bills from every committee and managing the state’s funds. That role has allowed him to work with lawmakers across the chamber and different parts of the executive branch, he said.
“You get a really broad picture of the entire government,” Perchlik said.
Just a day after House Speaker Jill Krowinski, D-Burlington, surprisingly announced that she won’t seek reelection, a handful of likely Democrats to succeed her said they were mum on their plans to run for speaker.
House Majority Leader Rep. Lori Houghton, D-Essex Junction, said it’s too soon to say if she will run, though she didn’t rule out the possibility.
“She just announced yesterday,” Houghton said, adding that she’s trying to focus on finishing out the session.
Rep. Emilie Kornheiser, D-Brattleboro, who chairs the House Ways and Means Committee, similarly said she’s considering running, but right now she’s focused on finishing legislative work, too.
Rep. Charlie Kimbell, D-Woodstock, said, “I haven’t made up my mind about it.” Kimbell previously ran for speaker in 2020 before dropping out of the race to endorse Krowinski. He also ran for lieutenant governor in 2022 before losing in the primary.
Rep. Laura Sibilia, I-Dover, who challenged Krowinski for speaker at the beginning of 2025, said, “I have not ruled it out.”
In the know
At the eleventh hour, lawmakers let the law enforcement masking bill supported by immigrant rights activists, S.208, die.
“I’m very disappointed with what has happened to S.208,” said Sen. Nader Hashim, D-Windham, the bill’s lead sponsor, on the Senate floor Friday.
The decision comes after a committee of lawmakers from the House and Senate agreed on a version of the bill that would have largely banned all law enforcement operating in the state — including federal agents — from wearing masks or failing to visibly identify themselves.
Committee members decided to make that provision of the bill go into effect March 15, 2027, rather than upon passage, reasoning it would give the state time to see how similar laws in other states play out in the courts.
The bill the committee approved would have given the Vermont attorney general’s office the responsibility to enforce it, bringing a civil lawsuit if officers violated the law.
Upon passage, the bill also would have required a Vermont law enforcement board to create a statewide policy on masking and identification for local and state police.
All members of the conference committee signed on to support the newest version of the bill except the committee’s lone Republican appointee, Sen. Chris Mattos, R-Chittenden North. During a committee meeting Thursday, Mattos said he was unsure he could support the bill because the committee hadn’t heard from the attorney general’s office about whether it was on board to enforce the policy.
After the conference committee approved the bill, it sat on the House’s calendar Friday but was not taken up on the House floor.
For the bill to pass before adjournment, lawmakers would have needed three-quarters of the House to suspend legislative rules, which would allow lawmakers to speed up the legislative process. That would have required Republican support.
Lawmakers on the Senate floor decided to adjourn around 5:50 p.m., giving up on the idea of receiving the bill from the House.
“It was barely a year ago that I watched Mohsen Mahdawi be taken by masked men in unmarked vehicles,” said Sen. Becca White, D-Windsor, expressing her frustration that the bill didn’t pass.
— Charlotte Oliver
Lawmakers on the House floor Friday made a failed attempt to override the governor’s veto of a bill, H.727, that would have set strict guardrails for any future huge data centers in Vermont.
The bill contained provisions that would prevent any large data centers in Vermont from increasing electricity costs for average ratepayers. The bill also contained provisions that would restrict how data centers discharge chemicals and use water to stay cool in an attempt to limit environmental impacts.
Gov. Phil Scott vetoed the bill Thursday. In his letter to lawmakers, Scott said he believes Vermont’s existing regulations would prevent harmful impacts from data centers.
Lawmakers voted 83-52 in favor of overriding the veto, but they needed 90 votes to do so.
— Charlotte Oliver
On the move
Vermont’s House and Senate budget writers reached a deal Thursday night on a state spending package for the upcoming fiscal year, which starts in July.
Agreement on the budget bill, H.951, came with likely just a day left in this year’s legislative session. Overall, the joint House and Senate conference committee’s version of the budget totals $9.38 billion, close to the amount of spending Gov. Phil Scott proposed at the start of the session in January.
The bill was expected to get a final sign-off on the House floor Friday after weeks of both public and closed-door negotiations. The conference committee signed off on the bill around 11 p.m. Thursday.
Among the last pieces of the nearly 150-page legislation to get resolved in the committee was a controversial plan to take money out of a state-run college scholarship fund to help pay for a long-stalled athletic complex at the University of Vermont instead. The fund, called the Higher Education Endowment Trust Fund, saw a historic infusion of cash last year from Vermont’s tax on the estates of high-wealth individuals.
Read the full story here.
— Shaun Robinson
Say cheese
“A crime has been committed, and we do need justice by the end of the day.”
Rep. Conor Casey, D-Montpelier, told his colleagues on the floor Friday morning that he was set on getting to the bottom of a putrid predicament that has been vexing him and other members of the House Corrections and Institutions Committee for weeks.
As he told it: Casey walked into the committee room a couple of months ago to “a rancid smell.” After weeks of searching high and low, he realized that the desks making up the committee’s table had small drawers underneath that he had never noticed before. He opened his drawer, only to find “a moldy, disgusting, offensive glob of cheese,” with a note that read, “say cheese.”
Casey is well known around the Statehouse for pulling pranks on his colleagues, so the cheese may have been an effort to get back at him before he steps down from the House. He then pulled open the drawer of his seat-neighbor, Barre Town Republican Rep. Gina Galfetti, to find yet another glob of cheese.
“It was a bipartisan cheesing, Madam Speaker,” he exclaimed Friday.
If the person who lodged the offending dairy did not come forward by the end of the day, Casey said, he would subject his colleagues to a full recitation of James Joyce’s mammoth novel, “Ulysses,” on the floor. Coming from the man who recited part of a play he wrote during a floor session last year, that seemed far from an empty threat.
As of this newsletter’s deadline, at least, the mystery remained unsolved.
“The craven still hides in the shadows,” Casey wrote in a text. “But rest assured they will be brought to justice. The session may end, but my lust for vengeance will endure…”
— Shaun Robinson
Vermont
Nearly 1,000 students to perform during 2026 Burlington jazz festival
Nearly 1,000 Vermont students will bring live jazz to downtown Burlington this June as part of the 2026 Discover Jazz Festival, with dozens of school ensembles scheduled to perform free concerts on Church Street.
According to a community announcement, 44 ensembles from 36 schools, representing 993 students from across Vermont, will take part in the festival’s 43rd year.
The student concerts are organized by The Flynn, which produces the Burlington Discover Jazz Festival and oversees its education and community programs. All student performances are free and open to the public.
Student performances highlight statewide participation
Participating schools span Vermont, including Chittenden, Franklin and Grand Isle counties, central Vermont, Addison County, Lamoille Valley, the Northeast Kingdom and southern Vermont, along with visiting ensembles from New York, according to the announcement.
Chittenden County schools listed include Burlington High School, Champlain Valley Union High School, Charlotte Central School, Colchester High School and Middle School, Edmunds Elementary and Middle schools, Essex High School and Middle School, South Burlington High School, Winooski Middle High School and Vermont Commons School, among others.
The student performances will take place during the Burlington Discover Jazz Festival, which runs June 3–7 and features free outdoor concerts alongside ticketed performances by internationally recognized artists curated by MacArthur fellow Jason Moran.
Featured collaboration includes Vermont Youth Orchestra musicians
A featured performance during the festival, “My Heart Sings: Jason Moran Plays Duke Ellington”, will include musicians from the Vermont Youth Orchestra Association jazz ensemble, according to the announcement.
The concert will also feature guest vocalist Rachel Ambaye, a South Burlington native studying with Moran at Berklee College of Music. Ambaye will join the student ensemble for a collaboration tied to one of the festival’s signature performances.
Flynn Executive Director Jay Wahl said in the announcement that bringing student musicians into the center of the festival highlights jazz as a living tradition shared across generations.
This story was created by Dave DeMille, ddemille@gannett.com, with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at cm.usatoday.com/ethical-conduct.
Vermont
Gov. Scott files for sixth term as House speaker, Senate president bow out
MONTPELIER, Vt. (WCAX) – Republican Gov. Phil Scott filed Thursday to seek a sixth term in office while the heads of both legislative chambers announced they will not run for reelection.
Thursday marked the deadline for candidates to get on the ballot for the August primary elections. For months, it has been unclear if Scott would run again.
“I don’t want to see anything move backwards; we need to keep pushing ahead,” Scott said.
Scott filed the necessary 500 signatures on Thursday. If he serves a sixth term, he would be the longest-serving consecutive governor in state history.
“It’s not easy work, it weighs on you, but at the end of the day, I feel the responsibility to stick this out,” Scott said.
The governor has won by larger margins each cycle. Potential Democratic challengers have waited to see whether Scott might step aside, providing a chance not to run against a popular incumbent.
Those who political observers speculated might be interested in the governor’s race included Democratic Attorney General Charity Clark and Treasurer Mike Pieciak. Both instead decided to seek reelection.
Pieciak told reporters he has experienced several personal tragedies this year and wants to continue with his office’s work. “It’s really been a year of reflection, and I think I’m excited about continuing this job that I enjoy,” Pieciak said.
Scott will face an opponent in November. Democrats Aly Richards and Amanda Janoo will face off in the August primary.
Three other Democrats, Molly Gray, Ryan McLaren, and Esther Charlestin, will face off for the Democratic nomination for lieutenant governor and the chance to challenge incumbent Republican John Rodgers in November.
House Speaker Jill Krowinski received a standing ovation from House lawmakers as she announced she will not seek reelection, joining Senate President Phil Baruth.
“The next group of leaders will do a great job continuing on with this work. I wouldn’t be leaving if I didn’t think that we had the right people in places to do this work,” Krowinski said.
That means there will be fresh leadership in the House and Senate next legislative session.
And there is competition in the race for Congress. Republicans Gerald Malloy and Mark Coester will face off in the GOP primary to determine who will face Congresswoman Becca Balint in November.
“To deliver results for Vermont. They are tired of the constant complaining and angry rhetoric,” Malloy said.
There are at least three dozen state House and Senate races that will see fresh faces as another large contingent of lawmakers steps back.
Copyright 2026 WCAX. All rights reserved.
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