Bill Schubart: The EB-5 Tragedy

Bill Schubart: The EB-5 Tragedy

EB-5 Visa, EB5 Visa, EB-5 Investment

There are many actors in the Jay Peak/Q Burke tragedy playing out on our northern Vermont stage.

The unfortunate investors whose investments were by law “at risk,” have been clearly deceived and may never see their promised green cards or any return on their investments. For some, the half-million dollars will be missed but well worth the cost of entry to the U.S. for them and their families. Others will be badly hurt by the financial loss. Hopefully, the appointed “recovery attorney” will be able to recover some of their losses.

Then there are the business principals, Bill Stenger – liked by those who know him, including this observer – and the mysterious Ariel Quiros, whom few know. The stinging civil charges brought by Vermont’s attorney general and the SEC against the two are pervasive and well documented. Naiveté will not play as a defense, even as both are innocent until proven otherwise.

Watching politicians backpedaling furiously in the media is, to me, a most shameful charade. The scramble to distance themselves from the brewing scandal rather than acknowledging that their enthusiasm for basking in the “job creation” limelight overwhelmed their leadership obligations to regulate and monitor. Naiveté will be no defense here either.

No justice will be done until the regulators are as fully investigated as those being charged – including Gov. Peter Shumlin, his Secretary of Commerce and Community Development Pat Moulton and Commissioner Susan Donegan of the Department of Financial Regulation. It would have been refreshing for our politicians and executive branch heads to step forward and acknowledge that they mishandled the whole affair.

I have great respect for Sen. Patrick Leahy but some three years ago I expressed grave doubts about the ethics underlying the EB-5 program.  And now, the whole initiative is at risk nationally given the abuses here in Vermont and others in metropolitan areas where districts have been gerrymandered to allow developers to access EB-5 funds to build luxury high-rises near neighboring pockets of poverty to qualify for the program.

Sadly, perhaps the greatest losers are the northern Vermonters who looked forward to a better way of life and more gainful employment opportunities. I grew up in Morrisville and Westmore and knew many people who were resilient and made their own way in a hardscrabble economy. And they will again.

But before the curtain comes down, the state should acknowledge an obligation to salvage as much economic opportunity as they can from the shambles they and those charged have wrought.


Litigation Cases


  • Vermont

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.