More news out of Northern Vermont as the debacle surrounding Jay Peak and Burke Mountain simply will not end. It now appears that the two Northeast Kingdom resorts will not be sold prior to the upcoming ski season.
Related: Alleged Jay Peak Ponzi Scheme Mastermind Forks Over $84 Million, Should Avoid Prison Time
Burke and Jay Peak have been surrounded with scandal for a few years now after the ownership group was accused of defrauding investors by exploiting a government program. Ariel Quiros and William Stenger were accused of blatantly misusing a EB-5 stimulus program whose intended purpose was to bring foreign investment into the economically-depressed Northeast Kingdom.
After this scandal was blown open in 2016, the state government appointed a “receiver” to take control over Jay and Burke and redistribute the funds/assets to the defrauded investors once the resorts sold.
Fast forward two years and it appears that the sale of the two resorts are postponed until after the upcoming skis season.
“Jay Peak is expected to be in the hands of a new owner next summer while the sale of Burke Mountain is now indefinitely on hold.
That’s according to Michael Goldberg, the court-appointed receiver overseeing the two Northeast Kingdom ski resorts at the center of a massive EB-5 scandal that has been playing out for the past several years in the northern mountains of Vermont” – Vermont Digger
The article continues to discuss that the sale of the smaller Burke Mountain is postponed indefinitely. Business was difficult for the two resorts this past season and despite a quick start, unseasonably warm temperatures and rain around the busy February vacation hurt profits.
“Though financial details were scant, the receiver stated that Jay Peak ski season ‘ended strong and combined with cost savings, finished with more cash on hand than last year.’ At the same time, Burke Mountain and its associated properties lost money again.” – New England Ski Industry
Find the entire Vermont Digger article here: Receiver plans to sell Jay Peak by next summer, hits brake on Burke sale