MONTPELIER, Vt. (WCAX) New woes for the embattled EB-5 program in Vermont.
The state just wrapped up a recent report looking at the failures that allowed the alleged fraud at Jay Peak to go undetected. The Vermont EB-5 center -- and the people who ran it -- are at the center of a lawsuit by foreign investors, who say the state failed in its oversight of the program.
Late Monday the governor's office announced the federal government intends to shut down the state-run regional EB-5 center. The governor says that decision is "generally alligned" with the recommendations of the new report. The governor says he favors having a private entity running the program.
The Vermont EB-5 Center is currently overseeing four projects including Mount Snow. The resort in June broke ground on the latest of its $52 million in projects. Officials there have said they are in the process of applying to open their own regional center.