The recent settlement of federal fraud charges levied against the former CEO and owner of Jay Peak has cleared the way for the resort's sale. Jay Peak photo.
Two years ago, the skiing world was rocked by one of the more salacious stories to come out of the industry in quite some time when the former owners of Jay Peak and Burke Mountain Resort were slapped with federal fraud charges by the Securities and Exchange Commission for running a $200 million Ponzi scheme. Now, it seems the story is coming to a close as VTDigger.com reports that both resorts will go on sale in May, clearing the way for defrauded investors to be repaid nearly in full.
RELATED: PBS NewsHour Goes In-Depth With Jay Peak Investigation
When the initial fraud charges were filed against former owners Ariel Quiros and Bill Stenger back in 2016, there was concern as to whether Jay Peak and Burke Mountain Resort would even be able to remain operational while the federal fraud charges were being worked out. Ultimately, both resorts stayed open and were run under the supervision of a federal receiver, and now, the recent settlement of the federal charges against Quiros and Stenger has cleared the way for both properties to hit the market come May.
“We have turned around [Jay Peak] 180 degrees,” Michael Goldberg, the court-appointed receiver of Jay Peak, said in a press conference announcing the forthcoming sale of the property. Under his guidance, Jay Peak managed to complete more than $5 million in repairs and upgrades, repay more than $10 million of outstanding debt to vendors and contractors and remain financially stable as the fraud cases were ongoing.
Now, the only question is who will buy the snowiest resort in New England? Given the recent arms race between Alterra Mountain Company and Vail Resorts, it's not a stretch to guess that Jay Peak probably won't be on the market for too long.
About The Author
stash member Robert Pursell
Connecticut journalism transplant who enjoys telling stories, drinking beer and skiing, though not necessarily in that order. I have the annoying habit of petting other people's dogs without asking.
SlopeStylz
February 21st, 2018
The Green Mountain State should do like Green Bay, but the resort, sell shares, and return it to the people.
What would a non-profit mountain look like? Reasonably priced food?
SlopeStylz
February 21st, 2018
I meant “buy” the resort.