Burke Mountain purchased for $11.5 million

an order that endorsed the sale of Burke Mountain Resort to Bear Den Partners LLC for $11.5 million, marking the conclusion of a significant legal battle involving Ariel Quiros, William Stenger, and other parties connected to securities fraud at Jay Peak and Burke Mountain Resort. Quiros, the previous owner of both resorts, was at the center of the controversy.

Judge Darrin Gayles emphasized that the best course of action to safeguard and optimize the assets of the receivership estate was a private sale to Bear Den Partners LLC. The $11.5 million offer from the buyer was deemed the most lucrative bid received by the Receiver for the assets. Furthermore, the Ground Lease between Burke Mountain Resort and the State of Vermont was confirmed to be in effect until December 1, 2054, with the State having already approved the assignment to the Buyer, removing a critical closing condition.

The legal case originated from a 2016 Securities and Exchange Commission (SEC) enforcement action against Quiros, Stenger, and their associates for alleged securities fraud. The court appointed Michael I. Goldberg as the receiver responsible for managing and divesting assets within the receivership estate, which included Burke Mountain Resort.

The SEC lawsuit was a result of a sizable fraud scheme related to the EB-5 Immigrant Investor Program, where foreign investors could secure U.S. residency by investing in projects that generated jobs in the U.S. Quiros and Stenger were accused of misusing over $200 million of the $350 million raised from investors. The funds were meant for various development projects, notably ski resort facilities and a biomedical research center in Vermont, yet the SEC alleged that they were instead misappropriated in a Ponzi-like manner to cover shortfalls in earlier projects.

The court order froze the defendants’ assets and appointed a receiver to recoup funds for duped investors. Following legal proceedings, Stenger served ten months of an 18-month prison sentence, being freed in March 2023, while Quiros commenced a five-year jail term in July 2022.

The finalization of the Burke Mountain Resort sale was a significant milestone, following the successful auction of the Jay Peak Resort to Pacific Group Resorts, Inc (PGRI) for $76 million in September 2022. The sale includes the notable Burke Mountain Hotel and Conference Center, with plans to boost its sustainability through a considerable additional investment of $10 million in the short term and $20 million in the long term by Bear Den Partners.

The Burke Mountain Academy, an institution attended by esteemed World and Olympic ski champion Mikaela Shiffrin, remains under separate ownership. This latest development marks a pivotal chapter in the legal resolution and financial revitalization of the Burke Mountain Resort, under new ownership and renewed prospects for growth and progress.