Stanger reports to federal prison to start 18-month sentence
Bill Stanger leaves the federal building in Burlington after pleading guilty in US federal court to a charge in the EB-5 fraud case. Stenger reported to a federal prison Tuesday to serve an 18-month sentence. File photo by Glenn Russell/VTdigger
Bill Stanger, the former CEO and chairman of Jay Peak, reported Tuesday in a federal prison in Massachusetts, the first of three business partners charged, convicted and sentenced to go behind bars in the biggest fraud case in the state’s history. .
Stanger, 73, has been given prison registration number 12519-082.
At his sentencing hearing in April, Stenger requested that he serve his term at the Federal Medical Center Devens, a prison in Eyre, Massachusetts, 200 miles from his home near the Canadian border in Newport. With credits for good timing, Stanger would need to serve approximately 15 months before being eligible for release.
The sentence is far less than the five-year sentence being sought by prosecutors, but his defense lawyers called for house arrest. The facility, sometimes known as Fort Devens, serves as a medical center, with a “minimum security satellite camp” according to the website of the Federal Bureau of Prisons.
Stanger’s lawyers requested Devens because it is one of the closest federal facilities to Newport. In his sentencing, Judge Geoffrey Crawford said he weighed in on the health problems raised by Stanger’s lawyers, though the judge said they were not life-threatening.
Ariel Quiros, a former owner of Jay Peak, and William Kelly, a key advisor to Quiros, are both set to begin their prison sentences at the end of this summer. Three men were indicted on charges largely stemming from their role in the EB-5 fraud case.
Crawford sentenced Queiros to five years behind bars and Kelly to 18 months, the same prison sentence as Stanger.
Although Crawford called Stanger the public face of the fraud scheme that involved hundreds of millions of dollars, Stanger’s lawyers were quick to point out that his client did not benefit financially from the illegal conduct. However, prosecutors have countered that Stanger could have cashed in for millions down the road.
Stenger pleaded guilty to submitting a false document to the government regarding the proposed Biomedical Research Center project. As part of a plea deal, prosecutors dismissed the fraud charges that were initially leveled against Stanger.
Prosecutors asked the judge to order Stanger to pay $1.66 million for the fraudulent investors, but the judge ultimately set the figure at $250,000.
Like the others imprisoned in Devens, Stanger will need to lead a regular life. He has to get up at 6 a.m. and put on a uniform consisting of khaki or green trousers and a shirt.
The handbook states, “The shirt shall be neatly tucked into the trousers and buttoned, except for the top button.” “Sleeves can be rolled neatly up to the elbow, or worn all the way down and buttoned up.”
Queiros is expected to serve his prison sentence on July 27 and Kelly on August 8.
Stanger, Queiros and Kelly were indicted in May 2019 on federal charges related to a failed $110 million project to build a biomedical research facility in Newport, which regulators later dubbed “almost a complete fraud.”
Per his petition, Stanger “deliberately and knowingly” submitted a document to the government on January 9, 2015, which contained false statements relating to the proposed ANC Bio Vermont’s sales projections and business plan.
Although more than $80 million was raised through its investments from more than 160 foreign investors seeking permanent US residency, little was done to make the project a reality.
Investors invest their money through the federal EB-5 program, which allows them to obtain a green card for U.S. residency if they invest at least $500,000 in a qualifying project. If that project creates the required number of US jobs, that investor becomes eligible to become a permanent US resident.
The ANC Bio project was part of a series of developments in the Northeast Kingdom – which includes Jay Peak and Burke Mountain Resorts – over a decade since Queiros and Stanger have been financed through the EB-5 program.
The U.S. Securities and Exchange Commission accused two men of misappropriating more than $200 million of more than $400 million raised over the years from EB-5 investors for their projects.
Regulators also alleged that Queiros had embezzled more than $50 million for his personal use, which included paying a large tax bill and buying a luxury condo in New York City.
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