Vermont Attorney General T.J. Donovan is challenging the veracity of an explosive claim that an attorney for investors defrauded in the EB-5 scandal made on Monday.
After a court hearing on the investors’ lawsuit against state officials, Stowe attorney Russell Barr told reporters he has evidence that one of the 10 defendants had been arrested on an EB-5 trip to China in “2013 or 2014” for “having sex with a minor” and was bailed out by another state official.
Barr declined to provide additional information, but said he would include it in future court filings.
In a statement Tuesday, Donovan said that Barr filed a public records request in November seeking state documents pertaining to “an arrest, detainment or holding of any state employee while traveling overseas in promotion of the Vermont Regional Center and its related projects.”
Others made similar requests in 2014, Donovan said. No such records exist, Donovan said.
“Any allegation of child sexual abuse by a state official, should be investigated regardless of where it occurred,” Donovan said. “I call on attorney Barr to immediately turn over the evidence he has to the proper authorities whether they be state, federal or international so this matter can be properly investigated.”
In his response Tuesday evening, Barr did not back down.
“The Attorney General’s Office concedes that any allegation of child sexual abuse should be investigated regardless of where it occurs,” Barr said. “It has known about these allegations for almost four years. What investigation did it conduct when it learned about them, and what were the results of that investigation? Did they question the officials on these trips? Did they put them under oath? What did they learn? Or did they intentionally avoid opening an inquiry?”
Donovan became attorney general in 2017.
In 2016, the U.S. Securities and Exchange Commission filed a civil lawsuit against former Jay Peak Resort owner Ariel Quiros and president Bill Stenger, alleging that they misused $200 million in investments over eight years for projects in Jay, Newport and Burke. Both men have settled with the SEC.
The investors, who each put $500,000 into Northeast Kingdom projects in return for permanent U.S. residency, argue that state officials played a key role in what federal investigators have called a “Ponzi-like” scheme.
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Please make that last figure $550,000. As I recall Stenger and the Q man got $50,000 for postage and handling or maybe it was for whatever or whoever…….
Either Barr is getting disbarred or this is the biggest story of 2018 so far.
The only thing that is clear is that a complete independent investigation of state officials role in the EB-5 scandal is desperately needed. This continued drip drip of information, be it that ex-Governor Shumlin and his girlfriend used Quiro’s 5th Avenue luxury pad free of charge or these allegations of impropriety by a state official on a Quiro’s paid junket to China, are a continued embarrassment for our state.
Since Attorney General Donovan does not feel it his place to do such an investigation, Governor Scott should appoint a Special Counsel of the highest ability and integrity to find the truth and report to the public. Only then will be able to learn from past mistakes and put whole this sordid affair behind us.
I realize that is a file photo on this article BUT, isn’t that old Pete Shumlin looking over Donovan’s shoulder?
I don’t think this scandal stands a chance of being investigated, unless Governor Scott appoints and independent investigator which should be done pronto. The whole EB-5 scandal is worse than an overflowing septic tank.