Judge Approves Fees in Jay Peak Fraud Receivership
A federal judge authorized over $1 million in legal costs as the decade-long receivership moves toward a 2026 closure.
Updated on Oct. 15, 2026 in Financial Crime
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A federal court has approved more than $1 million in fees and expenses for the receivership managing the fallout from a major EB-5 visa fraud scandal in Vermont. The court-appointed receiver is currently working to wind down the decade-long process by the end of 2026.
Why it matters
The receivership was established to oversee properties and assets caught in a high-profile financial fraud case involving Ariel Quiros and Bill Stenger. This latest authorization of legal fees is part of the final push to resolve the remaining obligations before closing the case.
Judge Darrin P. Gayles approved $996,370 in professional fees and $21,478 in expenses for the period ending August 31, 2026. This action follows the sale of the Newport property for $1.1 million, a key step in concluding the receivership.
The players
Darrin P. Gayles
He is the federal judge who has presided over the receivership case since April 2016.
Ariel Quiros
He was a key figure involved in the civil investor fraud enforcement actions that triggered the receivership.
Bill Stenger
He was a central participant in the business activities that led to civil investor fraud enforcement actions.
The details
The receivership funds its operational costs through a mix of property sales, including the $76 million Jay Peak Resort sale and the $11.5 million Burke Mountain Resort sale, alongside a 2017 settlement with Raymond James & Associates worth nearly $150 million. The receiver continues to assist foreign investors affected by the fraud as the legal process enters its final phase.
Timeline
April 2016: The receivership began under Judge Darrin P. Gayles.
2017: A settlement was reached with Raymond James & Associates.
2022: Jay Peak Resort was sold for $76 million.
2025: Burke Mountain Resort was sold for $11.5 million.
End of 2026: The receiver plans to complete the winding down of the receivership.
Legal Context
This case follows the precedent set by the 2016 EB-5 investor fraud enforcement actions against Jay Peak management. The conclusion of the receivership signifies the final legal unwinding of one of the largest financial scandals in Vermont history.
The resolution of this case settles ownership for major regional assets like Jay Peak and Burke Mountain resorts, providing long-term stability for local tourism. The closure of the receivership marks the final chapter for the many residents impacted by the decade-long fraud investigation.
The takeaway
The end of this decade-long legal process highlights the complexity of managing assets recovered from multi-million dollar fraud scandals. Investors and stakeholders should monitor the final distribution of remaining funds as the court works toward a 2026 closure date.
What happens next
The court receiver is scheduled to conclude the winding down of the receivership by the end of 2026.
Further reading
For more information on ongoing legal proceedings, visit the Financial Crime section.
Source note: This article includes information reported by VTDigger.
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