YCQM May 26, 2019

>> Darren: GOOD MORNING, I'M

DARREN PERRON.

WE WILL GET BACK TO OUR

MARATHON COVERAGE IN JUST A

MOMEN BUT FIRST, HERE'S

WHAT'S COMING UP ON YOU CAN

QUOTE ME.

THE KINGDOM CON FINALLY

CHARGES FILED IN VERMONT'S

LARGEST FRAUD CASE EVER.

HEAR FROM THE U.S. ATTORNEY

FOR VERMONT, AND WE'VE GOT

TEAM COVERAGE OF THE EVENTS

THAT UNFOLDED THIS PAST WEEK,

AND THE INVESTIGATION LEADING

UP TO THE INDICTMENTS.

FIRST, BACK TO MARATHON

SUNDAY.

AS YOU SAW, THOUSANDS OF

RUNNERS POUNDING THE PAVEMENT

IN BURLINGTON RIGHT NOW.

THEY KNOW WHERE THEY ARE

GOING, BUT WHAT ABOUT THE REST

OF US?

8,000 RUNNERS, 1700

VOLUNTEERS, AND COUNTLESS

SPECTATORS ARE CHEERING ON

FAMILY AND FRIENDS.

THE MARATHON IS THE BIGGEST

PARTY OF THE YEAR HERE, AND IT

CAN BE TOUGH TO NAVIGATE.

BURLINGTON POLICE SAY IF

YOU'RE COMING DOWNTOWN TO

WATCH THE ACTION, PLAN AHEAD.

>> LOOK AT A COURSE MAP THAT'S

READILY AVAILABLE ONLINE OR

NEWS OUTLETS.

LOOK WHERE YOU WANT TO GO, AND

LOOK WHAT TIMES, ROUGHLY,

RUNNERS WILL BE, AND YOU MIGHT

WANT TO GET IN SOME PLACES A

LOT EARLIER THAN WHEN YOUR

FRIENDS OR FAMILY ARE GOING TO

BE RUNNING BY, BECAUSE OF THE

TRAFFIC.

AND THE ROAD CLOSURES.

>> TRAFFIC WILL BE A LITTLE

DIFFERENT ON SUNDAY MORNING.

EXPECT DELAYS, ESPECIALLY IN

THE VICINITY OF PINE, NORTH

AVENUE, AND ANYWHERE IN THE

VICINITY OF CHURCH STREET.

>> Darren: ANOTHER TIP FROM

POLICE: IF YOU ARE TRYING TO

GO FROM THE CITY'S NEW NORTH

END TO THE SOUTH END, DRIVE

THROUGH CHOEL COLCHESTER

INSTEAD.

SEVERANCE CORNERS, GO RIGHT ON

ROUTE 2, AND TAKE THAT ALL THE

WAY INTO THE CITY.

ALSO, THE BURLINGTON BIKE PATH

IS CLOSED TO EVERYONE BUT

RUNNERS.

GOOD NEWS: SERGEANT SAID

DOWNTOWN BURLINGTON EAST OF

BATTERY STREET WILL THE PRETTY

MUCH CLEARED OUT BY 10:00 A.M.

BURLINGTON POLICE SAY THEIR

TOP PRIORITY IS FOR THIS RACE

TO GO SMOOTHLY.

AND FOR EVERYONE TO HAVE A

GOOD TIME.

THEY ALSO WANT YOU TO KNOW

THAT THE CITY WILL BE SWARMING

WITH COPS.

>> WE'RE GOING TO HAVE

OFFICERSES IN OVERWATCH

POSITIONS DOING SURVEILLANCE,

AND YOU WILL PROBABLY SEE SOME

OFFICERS OUT IN OUR EMERGENCY

RESPONSE VEHICLE.

WE HAVE MULTIPLE PARTNERS FROM

THE VERMONT STATE POLICE, WHO

ARE GOING TO BE THERE WITH

THEIR BOMB SQUAD, AND WITH

OTHER TACTICAL UNITS, TO OTHER

PARTNERS IN THE VERMONT

INTELLIGENCE CENTER, OR VIC,

WHO GIVE US INTELLIGENCE FEEDS

ON ANY KNOWN THREATS.

I'M HAPPY TO SAY THERE ARE

CURRENTLY NONE.

>> Darren: POLICE ALSO

REMINDING EVERYONE THAT THEY

HAVE THE RIGHT TO DO BAG

CHECKS AT THIS EVENT.

ONE WAY TO AVOID THAT, PUT

YOUR BELONGINGS IN A CLEAR

PLASTIC BAG.

AND TO TALK MORE ABOUT TODAY'S

RACE, I'M JOINED NOW BY RUN

VERMONT'S DIRECTOR OF

MARKETING AND COMMUNICATIONS,

JESS COVER.

GOOD MORNING TO YOU.

>> GOOD MORNING.

>> Darren: ANY LAST-MINUTE

CONCERNS HERE?

>> AT THIS POINT WE HAVE

EVERYTHING SET.

YOU KNOW, WE WORK WITH THE

CITY, WE WORK WITH ALL OF OUR

PARTNERS.

AS YOU HEARD, YOU KNOW,

CERTAINLY WORK WITH THE

POLICE, AND IF THE RUNNERS ARE

READY, WE'RE READY.

>> Darren: SO THIS EVENT, THE

VERMONT CITY MARATHON, HAS

REALLY BEEN EMBRACED BY THIS

COMMUNITY.

WHY DO YOU THINK THAT IS?

>> IT'S HARD TO SAY THE WHY,

BUT IT'S FOR REAL.

I RAN THE COURSE MYSELF, 26.2

ON THURSDAY MORNING, AND AS I

WAS RUNNING BY THE

NEIGHBORHOODS AND NORTH END

NEIGHBORHOODS ARE INFAMOUS,

AND PEOPLE WERE CHEERING FOR

ME.

THEY ARE LIKE, GOOD LUCK IN

THE MARATHON ON SUNDAY!

WE'RE READY FOR YOU!"

I THINK IT BRINGS A LOT TO UNT

THE COMMUNITY.

IF YOU ARE FIVE YEARS OLD,

FIFTY YEARS OLD OR EIGHTY

YEARS OLD, THERE'S SOMETHING

FOR YO

>> Darren: SPEAKING OF

BRINGING A LOT TO THE

COMMUNITY, THIS IS A HUGE

FINANCIAL BOOST FOR THE AREA.

>> YES.

IT BRINGS THE ESTIMATE IS

ABOUT $3.5 MILLION OVER

MARATHON WEEKEND, MEMORIAL DAY

WEEKEND TO THE BURLINGTON

COMMUNITY.

>> Darren: WE ARE TALKING

PEOPLE EATING AND STAYING

OVER, AND, YOU KNOW, ALSO,

THAT CAN HAVE A TRICKLE-DOWN

EFFECT IN THAT THEY LIKE

BURLINGTON, THEY SEE IT, THEY

ARE COMING BACK.

>> IN A IS FOR SURE.

-- THAT IS FOR SURE.

WE HEAR FROM A LOT OF PEOPLE.

"WE BRING THE FAMILY, OUR

FRIENDS."

THEY COME BACK FOR THE

MARATHON OR FOLIAGE OR

SOMETHING ELSE.

>> Darren: IS PREPARING FOR

THE VERMONT CITY MARATHON A

YEAR-LONG EVENT?

DO YOU BEGIN GETTING READY FOR

THE NEXT ONE AS SOON AS THIS

ONE IS OVER TODAY?

>> YES.

WE ARE FOUR FULL-TIME STAFF

AND ANOTHER FOUR PART-TIME

SEASONAL STAFF.

SO IT'S CERTAINLY YEAR-ROUND.

ACTUALLY REALLY AN 18-MONTH

CYCLE.

WE ALREADY STARTED PLANNING

FOR 2020, AND THEN WE'LL PUT

THE MARATHON BACK IN THE BOX,

AND MOVE FORWARD.

>> Darren: WHAT'S INVOLVED IN

GETTING A RACE OF THIS SIZE

TOGETHER?

>> IN A FEW HOURS?

[ LAUGHTER ]

AGAIN, IT IS WORKING WITH ALL

OF OUR PARTNERS, AND, YOU

KNOW, WHAT DO THE RUNNERS NEED

FOR FOOD, WHAT ARE THE SAFETY

CONCERNS, YOU KNOW, DESIGNING

THE SHIRT, DESIGNING TONS OF

LITTLE DETAILS AND THE BIG

PICTURE.

>> Darren: DO YOU RELY, YOU

MENTIONED THE NORTH END OF

BURLINGTON, AND, YOU KNOW, I'M

OUT THERE, GOES RIGHT BY MY

HOUSE AS WELL.

UNFORTUNATELY ONE YEAR IT WAS

SO HOT WE WERE SPRAYING PEOPLE

DOWN WITH THE HOSE.

DO YOU RELY ON THAT COMMUNITY

SUPPORT ALONG THE ROUTE AS

WELL, PEOPLE HANDING OUT

STUFF, ENCOURAGING RUNNERS IN

THIS EVENT.

>> YES.

WE FOR SURE HAVE EVERYTHING

OFFICIALLY THAT THE RUNNERS

WOULD NEED.

WE HAVE 21 AID STATIONS AND

ALL THE SFRUT AND ALL THAT,

BUT -- FRUIT AND ALL THAT.

ITS THAT FEELING, THE VIBE THE

COMMUNITY CREATES THAT WE

CAN'T DO IT WITHOUT THEM.

>> Darren: SO LET'S TALK ABOUT

SOME OF THE VOLUNTEERS I

MENTIONED.

1700 WHO HAVE ALREADY STEPPED

FORWARD.

ARE THEY PARTICIPATING TODAY.

-- THEY ARE PARTICIPATING

TODAY.

ARE A LOT OF FOLKS REPEATS?

DO THEY HAVE SUCH A GOOD TIME

THEY COME BACK EVERY YEAR?

>> CERTAINLY.

WE HAVE FOLKS WHO HAVE

VOLUNTEERED WITH US EVERY

YEAR, AND THERE'S FOLKS,

PROBABLY 50%, I WOULD SAY, ARE

RETURNING VOLUNTEERS.

AND THERE'S FOLKS THAT STARTED

WHEN THEY WERE REALLY YOUNG

WITH THEIR PARENTS.

NOW THEY ARE ON WHAT WE CALL

MARATHON COMMAND.

AND MAKING IT HAPPEN.

>> Darren: YOU ARE ALWAYS

LOOKING FOR VOLUNTEERS.

AND WHY IS THAT, IS THERE JUST

NEVER ENOUGH PEOPLE TO PUT ON

SOMETHING LIKE THIS?

>> AGAIN, YOU KNOW, WE HAVE A

SMALL STAFF, AND IT'S 26.2

MILES.

THAT COVERS A LOT OF GROUND.

TO KEEP OUR RUNNERS SAFE, THE

BIG THING IS AID STATIONS, AND

ALL THE COURSE MONITORS, THAT

TAKES UP A LOT OF BODIES.

>> Darren: WHY DO YOU THINK

THIS RACE IS DIFFERENT.

WHY WHAT REALLY SETS IT APART.

THERE ARE MARATHONS ALL OVER

THE COUNTRY, ALL OVER NEW

ENGLAND.

THERE'S OTHER ONES IN OUR

REGION.

>> MM-HMM.

>> Darren: WHAT MAKES THE

VERMONT CITY MARATHON SO

DIFFERENT?

>> I THINK IT'S PERFECT IN

THAT IT'S BIG ENOUGH THAT YOU

GET THE FEELING, BUT IT'S

SMALL ENOUGH THAT YOU DON'T

HAVE THE MAJOR HASSLE OF SOME

OF THE MAJOR MARATHONS.

SO THAT COMBINATION WITH THE

COMMUNITY SUPPORT, JUST BRINGS

IT ALL TOGETHER.

>> Darren: VERY QUICKLY, THERE

WAS A COUPLE CHANGES TO THE

COURSE, INCLUDING THE FINISH

LINE IN A DIFFERENT LOCATION.

WHY IS THAT?

>> WE, PARKS AND REC GOT A

LITTLE BEHIND ON SCHEDULE AND

WATERFRONT PARK, SO WE HAVE

CONTINGENCY PLANS.

WE SHIFTED BACK TO THE FINISH

LINE FROM A FEW YEARS AGO,

MADE SOME MINOR TWEAKS, AND

WE'RE GOOD TO GO.

>> Darren: JESS COVER, THANK

YOU SO MUCH.

APPRECIATE YOUR TIME.

>> THANK YOU.

>> Darren: COMING UP NEXT, WE

MEET THE PACE SETTERS IN THE

RATION.

PLUS, THE TEAM THAT'S RUNNING

FOR SPARE BODY PARTS.

WE'LL EXPLAIN.

LATER, INVESTIGATORS SAY THEY

SWINDLED MILLIONS OUT OF

FOREIGN INVESTORS.

AN IN-DEPTH LOOK AT THE

KINGDOM CON.

>> Darren: AMONG THE RUNNERS

IN TODAY'S MARATHON, PEOPLE

HOLDING SIGNINGS WITH NUMBERS

ON THEM.

IT'S THE VCM PACE TEAM.

AND A COUPLE OF WEEKS AGO,

MEMBERS OF THAT TEAM MET WITH

SOME RUNNERS IT SKI-RACK IN

BURLINGTON, AND SCOTT

FLEISHMAN WAS THERE, TOO.

[ CHEERING ]

>> THE FOUR-HOUR MARATHON.

>> IT'S A ROUND-SOUNDING

NUMBER.

>> FOR THE AVERAGE RUNNER, IT

IS ABOUT AS ELUSIVE AS THE

PERFECT SPRING DAY IN VERMONT.

FEWER THAN 25% OF MARATHONERS

HAVE BROKEN THE BARRIER.

>> IT'S AN INTERESTING TIMING

SPACE FOR PEOPLE.

>> IF YOU FEEL LIKE TAKING ON

THE CHALLENGE.

>> ONE PERSON WILL HAVE THE

TIME, ONE WILL DROP BACK.

>> TOVMS NUOVO WILL HELP YOU

GET THERE.

>> THIS IS HIS EIGHTH TIME

PACING THE FOUR-HOUR GROUP AT

THE VCM.

>> WE LIKE TO TALK TO THEM AND

GIVE THEM, YOU KNOW, KEEP THEM

MOTIVATED TO GOING, YOU KNOW,

ASK ABOUT HOW THEY ARE DOING,

GIVE THEM ANY ADVICE WE CAN

WHILE WE'RE RUNNING.

>> REALLY VALUABLE FOR

EVERYBODY.

>> JIM RUDOLPH IS LOOKING TO

FINISH HIS THIRD VCM IN THREE

HOURS, 30 MINUTES.

>> WE'LL SEE IF THAT'S TOO

AMBITIOUS.

>> THE PACE SETTERS MAKE IT

LESS DAUNTING.

>> IF YOU DON'T HAVE SOME SORT

OF YARDSTICK TO KEEP YOU

SLOWER THAN YOUR BODY WANTS TO

START OFF WITH, IT'S REAL EASY

TO BLOW UP.

>> FROM THE WATER STATION

VOLUNTEERS ... TO THE FANS,

AND YOUR SNEAKERS' CUSHION,

THERE'S PLENTY OF SUPPORT ON

MARATHON DAY.

>> PACE TEAM LEADERS RAISE

YOUR HAND.

>> BUT NO ONE MAY PREVENT YOU

FROM GETTING MORE HAMSTRUNG

THAN THE PACE SETTERS.

>> PEOPLE COME TO ME

AFTERWARDS THANKING ME FOR

KEEPING THEM MOTIVATED.

ESPECIALLY AT THE END OF THE

RATION.

>> WHOO-HOO!

>> WHOO!

>> SOME RUNNERS ARE FOCUSED ON

THEIR TIME; MANY ARE LOOKING

TO PROVE THEY CAN FINISH.

PLENTY ARE JUST THERE FOR FUN.

BUT FIVE RELAY RUNNERS AND THE

ORGANIZER OF THEIR TEAM ARE

LOOKING TO USE THE RACE AS A

PLATFORM FOR SOMETHING BIGGER.

JACK FITZSIMMONS CATCHES UP

WITH THEM.

>> FOR UNDERHILL'S JIM CARTER,

A PERSONAL TRAGEDY NEARLY 30

YEARS AGO SERVED AS THE

CATALYST TO DEDICATE HIS LIFE

TO HELPING OTHERS.

>> I DO ALL OF THIS REALLY IN

HONOR OF OUR DAUGHTER, ANDREA,

WHEN SHE WAS IN A CAR CRASH IN

JERICHO AND DONATED CORNEAS,

HEART, LIVER AND KIDNEYS.

>> IN THE YEARS SINCE HER

PASSING, JIM HAS BECOME

HEAVILY INVOLVED WITH THE

TRANSPLANT DONOR NETWORK IN

THE STATE OF VERMONT AND

REGULARLY VISITS HIGH SCHOOLS

TO ENCOURAGE STUDENTS TO

REGISTER AS ORGAN DONORS.

YEARS AGO, HE AND OTHERS CAME

UP WITH ANOTHER IDEA TO HELP

RAISE AWARENESS.

>> SEVERAL YEARS AGO WE SAID,

YOU KNOW, THERE'S A NUMBER OF

VERY ACTIVE PEOPLE IN OUR

GROUP.

HE MAYBE WE SHOULD GET A TEAM

IN THE MARATHON.

>> THEY CALLED THEIR

TEAM "SPARE PARTS."

EIGHT YEARS LATER IT IS STILL

GOING STRONG.

>> I WAS LUCKY ENOUGH ABOUT A

YEAR AGO TO DONATE A KIDNEY TO

MY FATHER.

>> WHEN I WAS A BABY, I WAS

DIAGNOSED WITH A DISEASE.

MY LIVER SUCKED AT BEING A

LIVER AND I NEEDED A NEW ONE

QUICKLY.

MY DAD STEPPED UP TO THE

PLATE.

>> ALEX WINEL OF BURLINGTON

AND ALEX CABOT ARE TWO OF THE

FIVE RUNNERS ON THE TEAM.

ROUGHLY 20 WHO HAVE RUN FOR

SPARE PARTS OVER THE YEARS.

THEY BOTH ARE EXCITED TO HELP

BRING AWARENESS TO A CAUSE

NEAR AND DEAR TO THEM.

>> WHEN YOUR DAD OR HUSBAND IS

ON THE COUCH DOING DIALYSIS

FOUR, FIVE TIMES A DAY, HE

CAN'T REALLY LIVE.

MY EXPERIENCE WAS PHENOMENAL,

BUT IT'S ALSO BROUGHT ME MORE

INTO THE TRANSPLANT COMMUNITY

IN GENERAL.

>> A LOT OF THE TIME PEOPLE

JUST DON'T KNOW ABOUT ORGAN

DONATION, SO THE FACT THAT WE

GET TO GET THAT MESSAGE OUT

THERE, IT IS A REALLY GOOD

THING TO BE A PART OF.

>> TABLER IS RIGHT.

ACCORDING TO DONATE LIFE

VERMONT, 22 PEOPLE IN THE

UNITED STATES DIE EVERY DAY

WHILE WAITING ON ORGAN

TRANSPLANTS.

BUT ACCORDING TO JIM, THE

STATE OF VERMONT IS MAKING

HUGE STRIDES IN THAT

DEPARTMENT.

>> FIVE YEARS AGO IT WAS LESS

THAN 5% OF VERMONTERS SIGNED

UP TO BE ORGAN DOAN

ORGANIZATION.

LATEST COUNT, NOW 56%.

WE'VE GONE FROM 20,000

VERMONTERS SIGNED UP FIVE

YEARS AGO, TO OVER 360,000

NOW.

>> HE SAYS THAT'S LARGELY

THANKS TO A CONCERTED EFFORT

BY FORMER DMV COMMISSIONER ROB

IDE TO REGISTER DRIVERS.

>> I THINK MAYBE THE SPARE

PARTS TEAM IS JUST A SMALL

PART OF THAT.

>> AS FOR THE RACE ITSELF,

BOTH ALEX AND TAYLOR SAY THEY

HAVE THEIR WORK CUT OUT FOR

THEM.

>> I AM RUNNING 5.7 MILES.

>> IS THAT SOMETHING YOU FEEL

COMFORTABLE WITH?

READY TO GO?

>> NOT AT ALL.

WE ARE JUST GOING TO TAKE IT

ONE STEP AT A TIME.

>>

>> GOT A FUNNY TWIST.

I HAVE A TORN RIGHT LATERAL

MENISCUS.

IT ONLY AFFECTS THE CUTTING

AND ANYTHING, SO I AM GOING TO

TAKE IT RELATIVELY EASY.

I'M SURE WHEN THE TIME COMES

I'LL WANT TO RUN PRETTY HARD.

>> LOOKING FORWARD TO ALEX

SPRINTING THE WHOLE WAY.

AND THEN TAYLOR, WATCHING HER

SPRINT THE WHOLE WAY.

[ LAUGHTER ]

>> THEY ARE HOPEFUL THEY CAN

CONVINCE A FEW OF THE OTHER

RUNNERS AND SPECTATORS TO

REGISTER AS WELL.

IN BURLINGTON, JACK

FITZSIMMONS, CHANNEL 3 SPORTS.

>> Darren: COMING UP NEXT,

WILL CHARGES FINALLY BEGIN TO

HELP NEWPORT HEAL FROM THE

KINGDOM CON.

YOU'RE WATCHING CHANNEL 3,

"YOU CAN QUOTE ME."

WE'RE BACK IN A MOMENT.

>> Darren: THE OTHER SHOE

DROPS IN THE KINGDOM CON.

FOUR MEN FACE FEDERAL CHARGES

IN THE LARGEST FRAUD CASE IN

VERMONT HISTORY.

TARGETING FOREIGN INVESTORS

WITH THE PROMISE OF DEVELOPING

SITES, IN JAY, BURKE, AND

NEWPORT.

AND IT IS IN NEWPORT WHERE

YOU'LL FIND THIS.

A HOLE IN THE HEART OF

DOWNTOWN.

THAT WAS SUPPOSED TO HAVE BEEN

REDEVELOPED AS PART OF THE BIG

PLAN.

BUT FEDERAL INVESTIGATORS SAY

IT WAS ALL A SCHEME.

NOW ARIEL QUIROS, BILL STENGER

AND TWO BUSINESS PARTNERS FACE

BROAD ALLEGATIONS.

THEY ARE ACCUSED OF MISLEADING

FOREIGN INVESTORS AND EB5

PROGRAM REGULATORS IN ORDER TO

EMBEZZLE TENS OF MILLIONS FROM

A PROPOSED BIOTECH BUSINESS IN

NEWPORT.

THAT BUSINESS NEVER BUILT,

CALLED AnC BIO VERMONT,

PROMISED HUNDREDS OF JOBS, IN

STEM CELL AND ARTIFICIAL ORGAN

RESEARCH AND WOULD HAVE

OFFERED CLEAN ROOM RENTAL

SPACE.

BUT THE U.S. ATTORNEY FOR

VERMONT SAID IT WAS ALL BOGUS

TO LINE THE DEVELOPER'S

POCKETS.

>> NO SUCH BUSINESSES.

NO SUCH BUSINESSES WERE EVER

FEASIBLE AT ANSI VERMONT --

AnC BIO IN THE TIME THE

DEFENDANTS CLAIMED AND THEY

KNEW IT.

PUT SIMPLY, THE DEFENDANTS

DEVISED AND STOOD BY A BOGUS

BUSINESS PLAN WHILE THEY MADE

LITTLE EFFORT TO FORMULATE A

LEGITIMATE BUSINESS PLAN.

THE DEFENDANTS TOUTED AND SOLD

THE PROJECT AS A WAY TO BRING

MUCH-NEEDED JOBS TO THE

NORTHEAST KINGDOM.

VERMONTERS IN THE NORTHEAST

KINGDOM AND ACROSS THE STATE,

INCLUDING SOME POLICYMAKERS,

WERE UNDERSTANDABLY APPLAUDED

THAT GOAL.

BUT THE DEFENDANTS LIED, AND

THEY CHEATED.

VERMONTERS ARE TRUSTING

PEOPLE.

THEY WERE UNDERSTANDABLY

ENTHUSIASTIC ABOUT THE

DEFENDANT'S PROMISED JOB

CREATION IN THIS PART OF THE

STATE.

BUT THE DEFENDANTS ENGAGED IN

DECEPTION AND PROMISES WERE

BROKEN.

IT IS WRONG, AND WE HOPE THAT

THE ANNOUNCEMENT OF TODAY'S

GRAND JURY INDICTMENT IS A

STEP TOWARD WRITING THAT

WRONG.

AND SO IT'S IMPORTANT FOR

VERMONTERS TO KNOW THAT WE ARE

GOING TO SEEK TO HOLD PEOPLE

CRIMINALLY ACCOUNTABLE WHEN

BIG FRAUD HAPPENS, EVEN IN OUR

SMALL STATE.

>> Darren: THREE OF THE FOUR

MEN NAMED IN THE KINGDOM CON

INDICTMENT APPEARED IN FEDERAL

COURT WEDNESDAY.

ALL THREE OF THEM PLEADED NOT

GUILTY TO THE CHARGES.

THAT INCLUDES CONSPIRACY TO

COMMIT WIRE FRAUD, WIRE FRAUD,

AND MAKING FALSE STATEMENTS.

ATTORNEYS FOR ARIEL QUIROS AND

BILL STENGER SPOKE WITH OUR

DOM AMATO ON THEIR WAY OUT OF

COURT.

>> BILL STENGER HAS LIVED IN

THE NORTHEAST KINGDOM FOR 35

YEARS.

HE'S DEDICATED HIS LIFE TO THE

IMPROVEMENT OF VERMONT AND THE

NORTHEAST KINGDOM.

>> DEFENSE ATTORNEY BROOKS MK

ARTHUR SPOKE ON BEHALF OF BILL

STENGER OUTSIDE OF THE FEDERAL

COURTHOUSE IN BURLINGTON

WEDNESDAY MORNING.

>> THERE IS IN THE STRONGEST

POSSIBLE WAY WE CAN SAY IT A

DENIAL THAT HE ENGAGED IN ANY

CRIMINAL ACTIVITY AT ALL.

>> McARTHUR CLAIMS HIS CLIENT

HAD NO MOTIVE TO ENGAGE IN THE

SCHEME.

70-YEAR-OLD STENGER, WHO

WALKED INTO THE COURTROOM IN

HANDCUFFS, FACES 10 CHARGES,

INCLUDING WIRE FRAUD, AND

MAKING FALSE STATEMENTS.

ACCORDING TO COURT PAPERWORK,

STENGER WAS IN CHARGE OF

RECRUITING INVESTORS, AND

USING HIS CONNECTIONS IN

VERMONT TO GARNER SUPPORT FROM

LOCAL, STATE, AND FEDERAL

POLITICIANS.

>> HE WANTED TO BRING JOBS.

HE WANTED TO BRING ECONOMIC

VITALITY, AND THERE IS SIMPLY

ZERO EVIDENCE THAT HE

BENEFITED IN ANY WAY FROM

ENGAGING IN THE ALLEGATIONS

THE U.S. GOVERNMENT HAS PUT

FORTH.

>> COURT DOCUMENTS ALLEGE THAT

STENGER WAS IN ON THE PLANNING

OF THE FRAUD AND SET TO

RECEIVE $1 MILLION AS PART OF

THE SCHEME.

63-YEAR-OLD ARIEL QUIROS OF

MIAMI ALSO IN HANDCUFFS

WALKING INTO THE COURTROOM.

HE IS PAINTED AS THE

DECISION-MAKER OF KINGDOM CON.

QUIROS MACES THE SAME

CHARGES -- FACES THE SAME

CHARGES, TWO ADDITIONAL MONEY

LAUNDERING CHARGES.

>> WE WON'T MAKE MUCH OF A

COMMENT ON THIS CASE.

WE WILL SAY IT SHOULD NEVER

HAVE BEEN BROUGHT, AND THE

FACT IS THAT THE STORY, THE

FULL STORY, HAS NOT BEEN TOLD

BY THE GOVERNMENT.

WE LOOK FORWARD TO THE TRUTH

COMING OUT.

WE LOOK FORWARD TO

MR. QUIROS'S VINDICATION.

>> PROSECUTORS SAY THE SCHEME

INVOLVED THE EMBEZZLEMENT OF

THE EB-5 FUNDS INSTEAD OF

BUILDING THE BIOMEDICAL

RESEARCH PARK.

THE FEDS SAY SOME OF THE MONEY

WAS FUNNELED IN THE POCKETS OF

QUIROS FOR HIS OWN USE AND TO

ANOTHER MAN, SOUTH KOREA-BASED

BUSINESSMAN, ALEX CHOI.

FROM 2012 TO 2016, OVER $80

MILLION WAS OBTAINED FROM OVER

160 IMMIGRANT INVESTORS.

>> OUR BUSINESS PARTNER AND

ADVISOR TO QUIROS, WILLIAM

KELLY, ALSO PLEADED NOT GUILTY

TO MULTIPLE CHARGES.

AND ANOTHER MAN, THE QUOTE,

HIDDEN PARTNER, ALEX CHOI OF

SOUTH KOREA, ALSO FACES

SIMILAR CHARGES.

HE WAS NOT IN COURT ON

WEDNESDAY.

ACCORDING TO PROSECUTORS, HE

IS STILL AT LARGE.

KELLY, QUIROS, AND STENGER,

WILL EVENTUALLY HAVE THEIR

CASES HEARD BY A JUDGE IN

RUTLAND.

IN BURLINGTON, DOM AMATO

CHANNEL 3 NEWS.

>> Darren: THE NORTHEAST

KINGDOM DEVELOPMENT PROJECT

AND THE EB-5 FRAUD SCANDAL IS

A STORY ABOUT NUMBERS.

MANY OF THEM ARE REALLY BIG

NUMBERS.

THE KIND WE DON'T TALK ABOUT

IN VERMONT VERY OFTEN.

HERE'S ROGER GARRITY.

>> LET'S START WITH THE MONEY.

$450 MILLION.

THAT'S HOW MUCH THE FEDS SAY

QUIROS AND STENGER RAISED FROM

EB-5 INVESTORS FOR THE NEK

PROJECTS.

$200 MILLION.

THAT'S THE AMOUNT THE SEC SAYS

WAS MISSPENT IN A PONZI-LIKE

SCHEME.

THE SHIFTING OF FUNDS FROM ONE

PROJECT TO COVER EXPENSES ON

ANOTHER.

AND $50 MILLION, THE AMOUNT

THE SEC SAID QUIROS DIVERTED

FOR HIS OWN PERSONAL USE

THROUGH A COMPLEX WEB OF

FINANCIAL TRANSACTIONS.

ALL OF THAT MONEY WAS RAISED

THROUGH THE EB-5 VISA PROGRAM.

FOREIGN INVESTORS PUT UP

$500,000 EACH IN EXCHANGE FOR

A GREEN CARD AND THE HOPE OF

PERMANENT RESIDENCE IN THE

UNITED STATES.

INVESTIGATORS SAY SOME 800

INVESTORS, FROM 74 DIFFERENT

COUNTRIES ALL AROUND THE

WORLD, BOUGHT INTO THE NEK

PROJECTS.

BUT BECAUSE THE PLUG WAS

PULLED WHEN THE ALLEGED FRAUD

WAS UNCOVERED, AN ESTIMATED

400 OF THOSE INVESTORS HAVE

NEVER GOTTEN THEIR GREEN

CARDS.

THE OTHER BIG NUMBER TO

CONSIDER, 10,000.

THAT'S THE NUMBER OF JOBS THE

DEVELOPERS PROMISED TO CREATE

IN THE NORTHEAST KINGDOM.

>> Darren: THERE IS NO CLEAR

AGREEMENT ON EXACTLY HOW MANY

OF THOSE JOBS WERE ACTUALLY

CREATED.

PERHAPS A COUPLE OF THOUSAND.

BUT MANY OF THEM WERE NOT

PERMANENT.

AND THAT IS THE REAL

DISAPPOINTMENT OF THE KINGDOM

CON FOR THE PEOPLE WHO ARE

REMINDED OF THE FAILED PROMISE

OF EB-5 EVERY DAY.

>> BREATHTAKING SIGHTS LIKE

THIS ABOUND IN VERMONT'S

NORTHEAST KINGDOM.

LAKE MEMPHREMAGOG SPLASHES THE

SHORES OF DOWNTOWN NEWPORT.

YOU WOULD THINK VISTAS LIKE

THIS WOULD BE A BIG BONUS FOR

STEVE BREAULT'S MAIN STREET

CAFÉ.

BUT FOR SEVERAL YEARS NOW,

THIS HAS BEEN HIS VIEW.

>> IT'S BEEN A DETRIMENT.

IT'S DEFINITELY HURT OUR

SALES.

>> A HOLE IN THE HEART OF

NEWPORT.

THE MOST VISIBLE SCARF THE

EB-5 SCANDAL.

>> THERE WAS BUSINESSES AND

APARTMENTS THERE, AND NOW

THERE'S JUST WEEDS AND TREES

GROWING 20 FEET HIGH.

>> AN ENTIRE BLOCK WAS TORN

DOWN TO MAKE WAY FOR PROMISED

REDEVELOPMENT, BUT

INVESTIGATORS SAY THOSE

PROJECTS WERE ALL A FRAUD,

CONCOCTED TO LURE MORE

INVESTORS TO COVER THE COSTS

OF OTHER PROJECTS AT JAY PEAK

AND TO LINE THE POCKETS OF THE

DEVELOPERS.

>> TOO GOOD TO BE TRUE.

>> RESIDENTS HERE HAVE BEEN

DEALING WITH THE EYESORE SINCE

THE SCANDAL BROKE.

>> IT JUST MAKES ME ANGRY THAT

BECAUSE OF GREED THIS

HAPPENED.

>> AND IT'S UNCLEAR WHEN AND

WHAT WILL BE DONE TO FILM THE

SPACE.

BUT THE CHAMBER OF COMMERCE

PROMISES THE PRIME LOCATION

WILL EVENTUALLY ATTRACT

INVESTORS.

>> WHAT'S HOLDING THIS UP FROM

DEVELOPMENT IS IT IS IN THE

COURT RECEIVER'S HANDS.

IT CAN'T BE SOLD, IT CAN'T BE

DEVELOPED.

EVERYBODY IS JUST WAITING FOR

SOMETHING TO HAPPEN.

>> BREAULT HOPES SOMEONE COOKS

UP A PLAN AND SOON.

>> YOU KNOW, IT'S BEEN A BIT

OF A DISAPPOINTMENT, TO SAY

THE LEAST.

>> Darren: WHAT WAS PROMISED

AT THE SITE WAS A HOTEL AND A

BUNCH OF RETAIL SPACE.

CITY LEADERS TELL ME THAT IS

STILL THE GOAL ONCE THIS IS

ALL SETTLED, AND THEY ARE

LOOKING AT ADDITIONAL OPTIONS

TO FILL THAT HOLE AS WELL.

THAT WILL DO IT FOR CHANNEL

3'S "YOU CAN QUOTE ME."

WE'LL SEND IT BACK TO SCOTT

FLEISHMAN AND THE WEEKEND TEAM

NOW FOR CONTINUING COVERAGE OF

THE VERMONT CITY MARATHON.

HAVE A GREAT DAY, EVERYBODY.

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