Ex-Jay Peak president: Shumlin ‘covered up’ Kingdom Con

BURLINGTON, Vt. (WCAX) - The former president of Jay Peak Resort Bill Stenger says the State of Vermont “covered up” the $200 million fraud that sent him to federal prison.

In a six-page affidavit obtained by Channel Three News, Stenger calls himself an “unknowing pawn.”

Stenger accuses state officials, especially former Governor Peter Shumlin, D-Vermont, of knowing about the Ponzi-like scheme as early as 2015 and promoting the projects, anyway.

Through marketing materials, including a globally-distributed video featuring Shumlin, Stenger says the State of Vermont assured investors officials were auditing the projects.

Stenger accuses the state of exploiting naïve foreign investors who weren’t familiar with the U.S. legal system and would rely on the promise of oversight. That promise, Stenger says, was a key selling point when soliciting funds. In reality, the sworn testimony claims, the state would approve the projects without any proper review.

The court record obtained by Channel 3 News reads in part, “It is incomprehensible that my mistakes have landed me in jail, reputation tarnished, while the State of Vermont and state officials continue to absolve themselves of any misdeeds or liability whatsoever. Beyond unfair, these are lies. As I have, the State must own up to its role in bringing harm to these trusting and innocent immigrants.”

Shumlin tells VTDigger that this testimony is just an attempt to shift the blame for criminal activity.

Stenger pleaded guilty to making a false statement to a federal agency last summer and is currently serving an 18-month sentence for the scandal that rocked the Northeast Kingdom.

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