Tag Archives: Alan Keays

Boo This Man

It’s possible, in this moment of his ultimate disgrace, to feel just a little bit sorry for ex-governor Peter Shumlin. From fall 2014 to summer 2015, he endured three separate political de-pantsings — any one of which could have felled a lesser man in his tracks. First, his near-defeat at the hands of political outsider (and truly terrible campaigner) Scott Milne; then, having to admit failure in his signature push for single-payer health care; and then, in the spring of 2015, finding out that the Quiros/Stenger EB-5 projects were built on fiscal and ethical quicksand.

That said, his governorship will have to go down in history as singularly disastrous.

We know this now because of the dogged efforts of VTDigger to unearth a trove of documents kept secret by state officials. Its pursuit of the EB-5 White Whale was rewarded last week by a federal judge’s ruling that the documents must be made public.

And now, after poring their way through the docs, Alan Keays and Anne Galloway have published one of the most damning political pieces in recent memory. They recount how Shumlin and his team knew by the spring of 2015 that the EB-5 projects were fundamentally fraudulent and doomed to collapse… and yet they kept on flogging the projects for a full year. Their efforts only ended in the spring of 2016 when the feds launched a massive civil suit against Bill Stenger and Ariel Quiros.

That’s bad. But Keays and Galloway document a variety of ways in which the story is even worse than that dreadful topline. Let’s run the highlights, shall we?

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There Are Two Ways This Can End, and They’re Both Terrible

Anne Galloway, the Captain Ahab of Vermont journalism, has returned to port with another big bloody chunk of the Great White Whale.

The whale is the EB-5 scandal, about which fundamental questions remain unanswered because a lot of information has yet to be made public. I don’t agree with how VTDigger is stonewalling its union, but this is an example of why we need Digger. Galloway is doing a tremendous public service by chasing a complicated story that no other media outlet has been willing to tackle.

Should I do a brief recap of the EB-5 thing? Is that possible? Well, here we go.

EB-5 is a program that offers green cards to foreign investors who put money into development projects in designated rural and/or poor areas. It was a small thing in Vermont until the great recession of 2008-9, when it suddenly took off. State oversight failed to keep up with its rapid growth. A lot of good projects got built, but Ariel Quiros allegedly committed large-scale fraud by taking money for projects he never built. He was assisted in these efforts by Vermont businessman Bill Stenger.

The state of Vermont, particularly the Shumlin administration, either failed to detect the fraud or tried to cover it up. Which one? Probably both, but we don’t know because a lot of key documents are still, several years later, being kept under wraps.

VTDigger has been diligently pursuing those documents, and keeps winning partial victories. Which then gives them reams upon reams of documents to go through.

On Wednesday, Digger posted another installment in its series. This time, it reports that state officials knew there was fraudulent activity two years before the the scandal was revealed by federal regulators in 2016.

Yikes.

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