Q Burke disaster

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  • BetsyBetsy intermediate
    Posts: 65
    Location: Greater Burlington, VT
  • lotsoskiinglotsoskiing expert
    Posts: 597
    wow....makes the job assistance meeting sound like one of a certain reality TV personality's events: "Get 'em outta here!" Q missed a good opportunity to plead their case about the root of the hardship (weather) and is left looking guilty of a swindle. Not good.
  • djspookmandjspookman advanced
    Posts: 295

    My opinion is way more of a hotel than what the mountain warrants at this time.  When trouble was on the horizon, the effort should have been scaled back to 50% of what it is, even if mid-way through.

    • Do a root cause analysis at how things got this way
    • Examine options to get out and act on the best one.  
    • Negotiate with the builder
    • Fix any mountain issues
    • Take out the "Q"
    • Open a small fraction of the hotel for next year


    Good Calls bubblecuffer!  (especially the 'take out the Q' part!)
  • obienickobienick expert
    edited April 2016 Posts: 803
    REPORT: Q Burke Hotel Account Frozen by State
    Millions of dollars are allegedly unaccounted for.
    Monday, April 4, 2016, NewEnglandSkiIndustry.com
    Q Burke Hotel's investment account has been frozen by the Vermont Department of Financial Regulation, according to VTDigger.

    According to VTDigger, the State alleges millions of dollars of construction management fees were withdrawn from the Q Burke Hotel EB-5 funded account without explanation.

    According to a Burlington Free Press article released today, "the state has yet to receive the documentation regulators need to consider unfreezing the escrow account."

    In a separate VTDigger article released today, EB-5 investors in a related project, AnC Bio Vermont, are requesting refunds. According to the article, Stenger and Quiros want to "issue refunds from money collected from new investors."

    AnC Bio construction appears to be stalled in early stages, while Q Burke Hotel remains idle.


  • bubblecufferbubblecuffer advanced
    Posts: 246
    obienick said:

    According to VTDigger, the State alleges millions of dollars of construction management fees were withdrawn from the Q Burke Hotel EB-5 funded account without explanation.
    Ruh Roh.  Sounds like it might be some robbing Peter to pay Paul.  

    Thanks for posting.  This is smelling worse every day.

  • lotsoskiinglotsoskiing expert
    Posts: 597

    obienick said:


    Ruh Roh.  Sounds like it might be some robbing Peter to pay Paul.  


    Or to pay Ariel...

    The AnC Bio refund request scenario is really scary for the region as well. Maybe Quiros can come and kick some locals' dogs, too, while he's at it. 

    I wonder if he shows up in the Panama Papers all-star list...
  • obienickobienick expert
    edited April 2016 Posts: 803
    Aren't the Jay/Burke people associated with AnC Bio as well?

    For AnC Bio, they tried paying back an investor who wanted out with other investors' money held in escrow.  For Jay Peak, they paid investors a return from other investors' money again.  Aren't those the definition of a pyramid scheme?
  • lotsoskiinglotsoskiing expert
    Posts: 597
    obienick said:

    Aren't the Jay/Burke people associated with AnC Bio as well?


    For AnC Bio, they tried paying back an investor who wanted out with other investors' money held in escrow.  For Jay Peak, they paid investors a return from other investors' money again.  Aren't those the definition of a pyramid scheme?
    One (two) and the same...Jay/QBurke/AnCB....alphabet soup....shell game, pyramid scheme, you name it. Pretty messy...sad for the locals. I don't hear of this kind of thing happening at Okemo, Trapps or Mt. Snow, where EB5 program is a big player.
  • lotsoskiinglotsoskiing expert
    Posts: 597
    Something going on today at Q Burke....breaking story on WCAX news...not good. Some kind of investigation.
  • obienickobienick expert
    Posts: 803
  • bubblecufferbubblecuffer advanced
    Posts: 246
    I concur with one of the comments below the story - poorly written.  Is it just me or was that very difficult to follow?  Whatever it is, Rut Row is right.
  • Posts: 1,835

    I concur with one of the comments below the story - poorly written.  Is it just me or was that very difficult to follow?  Whatever it is, Rut Row is right.

    Have people noticed that it isn't a news article, but just the script from the news report posted as a video at the top of the page?
    - Sam
  • lotsoskiinglotsoskiing expert
    Posts: 597
    moving up the food chain to Washington: http://vtdigger.org/2016/04/13/leahy-pushes-for-reform-of-eb-5-program-citing-vermont-issues/

    Someone has been asleep at the wheel, allowing either ignorance or greed, or both, to step in.

    Really sorry for the folks up there who needed this and the other project to be a success. 
  • sugarloafsugarloaf expert
    Posts: 743
    Yesterday federal officials from the SEC paid a visit to Burke Mountain, seized information, changed the locks on the buildings, and began an investigation onsite into alleged mismanagement of EB-5 funds for the QHotel project.

    WCAX is now reporting that as part of that investigation that Messrs. Stenger and Quiros have been relieved of their management authority for both Jay and Burke and that an independent resort and hotel management company are now in control of the operations, pending the outcome of the federal investigations.

    http://www.wcax.com/story/31723261/o...y-peak-q-burke

    Ski Conditions Report: A detailed report describing the snow conditions on the mountain the day of your visit. Skiers should become familiar with the following snow surface descriptions: Ice: Packed Powder, Slush: Packed Powder, Frozen Granular: Packed Powder , Packed Powder - A thin covering of snow over bare earth.

  • mtsnow123mtsnow123 advanced
    Posts: 281
    Now a Kansas based company has taken over management, while the SEC investigates:
  • rickbolgerrickbolger expert
    Posts: 981


    :-O :-O :-O :-O :-O

  • mapnutmapnut expert
    Posts: 745
    So Jay may be as far up the creek as Burke?
  • lotsoskiinglotsoskiing expert
    edited April 2016 Posts: 597
    I would guess not so badly, as their projects are completed and operating. For Burke (sorry: Q Burke) it may be an existential issue... May just be that Stenger and Q will have to pay a price, and that might be Jay? This is not going to end soon, so pull up a chair...

    just hope the mountain can still operate and people can work. Curious what the impact will be on Kingdom Trails. Hopefully this new admin team will let that operate normally.
  • mtsnow123mtsnow123 advanced
    Posts: 281
    Okay, seems like this went downhill fast. This is just absolutely terrible news for the EB-5 program. I know Mount Snow was looking to gain some good improvement on those funds. Now Senator Leahy is looking into this disaster.
  • sugarloafsugarloaf expert
    Posts: 743

    The SEC alleges that Ariel Quiros of Miami, William Stenger of Newport, Vt., and their companies made false statements and omitted key information while raising more than $350 million from investors to construct ski resort facilities and a biomedical research facility in Vermont.  Investors were told they were investing in one of several projects connected to Jay Peak Inc., a ski resort operated by Quiros and Stenger, and their money would only be used to finance that specific project.  Instead, in Ponzi-like fashion, money from investors in later projects was misappropriated to fund deficits in earlier projects.  More than $200 million was allegedly used for other-than-stated purposes, including $50 million spent on Quiros’s personal expenses and in other ways never disclosed to investors.

    How could one person have $50 million in personal expenses?

    Ski Conditions Report: A detailed report describing the snow conditions on the mountain the day of your visit. Skiers should become familiar with the following snow surface descriptions: Ice: Packed Powder, Slush: Packed Powder, Frozen Granular: Packed Powder , Packed Powder - A thin covering of snow over bare earth.

  • mtsnow123mtsnow123 advanced
    Posts: 281
    Yachts?
  • rickbolgerrickbolger expert
    Posts: 981
    sugarloaf said:

    How could one person have $50 million in personal expenses?

     You spend a lot of money Q-uickly    :P


    this provides some context for understanding the brouhaha at a run-of-the-mill unemployment meeting.
  • MissDaEastMissDaEast intermediate
    edited April 2016 Posts: 56

    never mind... unnecessary post
  • rickbolgerrickbolger expert
    edited April 2016 Posts: 981
    thanks for posting this stuff.  The money flow is beyond me.  I once made something like that with a spirograph when I was a kid.

    Why the exceptions to Stenger in the requested relief section?  Did he make a deal?


    This isn't quite as memorable as "With malice toward none,"  but interesting in retrospect:

    Perhaps that need is best embodied in the Northeast Kingdom, the area of our state that for generations has struggled with chronically high unemployment rates and low incomes, where Bill Stenger and Ari Quiros continue to shine a beacon of hope, opportunity and future prosperity.
    blah blah blah
    I will be traveling with Bill and Ari to South America, Asia and other ports to help secure capital for this project, and in the months ahead, additional announcements of job opportunities are likely to be forthcoming as they are secured.

    Governor Peter Shumlin's Second Inaugural Address
  • NELSAPNELSAP advanced
    Posts: 124
    My inlaws live in Newport VT. This project destroyed an entire city block downtown, for "redevelopment". Based on all this, guessing it is going to be empty for a long long time.
  • State of VT press release:

     

    http://governor.vermont.gov/node/2721

  • rickbolgerrickbolger expert
    Posts: 981
    If Rocket were still around, he'd probably post this photo...

    image
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