Grim-faced state officials at the press conference announcing the Jay Peak fraud April 14, 2016: From left, DFR Commissioner Susan Donegan, Governor Peter Shumlin, Attorney General Bill Sorrell and Commerce Secretary Pat Moulton. VBM photo

by Mike Donoghue, Correspondent, Vermont Business Magazine With the three primary criminal defendants awaiting sentencing in federal court in Vermont for their part in the massive EB-5 investment scandal in the Northeast Kingdom, now attention turns to trying to confirm reports whether key state officials knowingly sat on Vermont’s largest fraud case and chose not to make it public for at least one year.

Defense lawyers Brooks McArthur and David Williams, on behalf of William Stenger, are hopeful that some, if not all, records, including FBI and IRS reports and interviews that are currently under seal, will be made public before their client is sentenced later this year.  

McArthur has said he plans to ask that Stenger, the former president of Jay Peak, get no prison time because he was duped by two co-defendants, Ariel Quiros and William Kelly, both of Florida.

McArthur has called Quiros and Kelley career con men and fraudsters.

Stenger, 72, of Newport could get up to 5 years in prison after pleading guilty in August to making false statements during a failed effort to build a major biotechnology plant in Newport with use of EB-5 money from foreign investors.

Federal prosecutors filed a 99-page brief on September 20…

Read more…