The Vermont Attorney General has reached a settlement with all those who sued the state over Jay Peak EB-5 investments.
According to the attorney general’s office, more than $400 million was invested in Jay Peak EB-5 projects. The state, 64 individual plaintiffs and the federal receiver have reached an agreement to settle all pending and potential lawsuits against the state. The agreement must obtain what is called a bar order that, if approved by the overseeing court, will resolve all pending and potential lawsuits that have been brought or could be brought against the state by approximately 850 investors in the project. So far there have been 33 lawsuits filed and a class action complaint filed on behalf of 121 investors. The global settlement announced Wednesday is $16.5 million. A separate agreement with eight investors reached a $750,000 settlement.
Foreign investors put at least $500,000 into Jay Peak projects to obtain a green card under the EB-5 program. But Jay Peak project leaders Ariel Quiros and Bill Stenger were charged and found guilty of fraud. Jay Peak eventually went into receivership.