The receiver for Jay Peak Resort will offer partial payment to contractors left with unpaid bills in the wake of one of the biggest cases involving fraud allegations in the history of the federal EB-5 program.
In a motion filed this week in federal court in Miami, and approved Wednesday, Michael Goldberg told the court he would offer contractors two choices: Take a 33 percent payment and receive the balance owed when the properties sell, or take a 60 percent payment of the amount owed as payment in full.
The EB-5 program offers green cards to foreigners who invest $500,000 in development projects in economically depressed areas of the country that create a minimum of 10 jobs per investment.
Goldberg wrote in court papers that contractors for the partially built Stateside Cottages at Jay Peak "allege" they are owed $2.1 million. Contractors for the Burke Mountain Hotel and Conference Center "allege" they are owed $3.9 million.
Phil Scott, who takes office Thursday as Vermont governor, said in a statement Wednesday he was pleased with the court's decision to allow the partial payments.
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