Vermont state government announces $16.5M to settle EB-5 lawsuits
The state of Vermont has agreed to pay $16.5 million to settle all pending lawsuits — and potential lawsuits — related to the EB-5 scandal.
The deal still needs to be approved by a court.
The tentative agreement would resolve 33 lawsuits and a class action complaint from investors who alleged the state failed to provide proper oversight of the EB-5 program. The federal program gives foreign investors green cards if they put money into development projects.
According to Attorney General Charity Clark, the state will also support investors bids' to get their green cards. If those efforts are successful, the state's overall settlement payment will be reduced by $4 million.
Federal regulators say that former Jay Peak owner Ariel Quiros and president Bill Stenger embezzled more than 200 million dollars from investors using the EB-5 program. Both men were sentenced to prison after pleading guilty to charges related to the fraud.
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