MONTPELIER — About $1.5 million in development funds have been awarded to projects in Newport thanks to a Vermont settlement with a former ski resort owner accused of fraud involving foreign investors’ money, officials said.
Extra consideration was given to properties and entities that showed they were adversely impacted by the fraud, Gov. Phil Scott’s office said Thursday.
Among the recipients is the Northeast Kingdom Development Corporation, which received over $1 million to buy and renovate a former manufacturing facility. The corporation will lease much of the building to Track Inc., which expects to create 80 to 100 jobs over 10 years, officials said.
The Northeast Kingdom Tasting Center received $79,500 for exterior and interior improvements. And $20,000 went to the Memphremagog Community Maritime to redevelop and repurpose the Gateway Center into a new tourism attraction and education center, officials said. Several other businesses also received grants.
Scott said it was important to support recovery and growth in Newport and the surrounding area. “By working with community leaders, and targeting these grant funds for economic development, we can help Newport move further towards economic recovery and growth in the long term,” he said.
Former Jay Peak owner Ariel Quiros and resort president William Stenger were accused of taking part in a “massive eight-year fraudulent scheme,” misusing more than $200 million of about $400 million raised from foreign investors through the EB-5 visa program.
Quiros and Stenger settled civil charges with the federal Securities and Exchange Commission, with Quiros surrendering more than $80 million in assets, including Jay Peak and Burke Mountain ski areas. The two men and two others were later indicted in 2019 over a failed plan to build a biotechnology plant in Newport using foreign investors’ money.
Quiros pleaded guilty to charges including conspiracy to commit wire fraud and money laundering and will serve just over eight years in prison. Stenger pleaded guilty to providing false documents and faces up to five years in prison.