Two South Florida law firms had a hand in getting the State of Vermont to part with $16.5 million, in what attorneys say could be the largest settlement in Vermont history.

The Attorney General of Vermont announced Wednesday it had reached an agreement to settle all pending and potential lawsuits against the state, related to the Jay Peak EB-5 Projects, which conned foreign victims seeking status via the federal Immigrant Investor Program.

"The trial that took place a couple of weeks ago that settled after only two days kind of led to momentum between the various parties finding this global resolution," Palm Beach County attorney Michael B. Stevens said.

Stevens is the managing partner at Partner Derrevere Stevens Black & Cozad. He teamed with co-counsel Russell Barr and Chandler Matson from the Barr Law Group in Stowe, Vermont, to try the first of the cases in a turn-of-the-century courthouse too small to handle all of the litigation at once, "so the state broke them into groups," Stevens said.

"It was an almost impossible task pursuing claims against a state. The case needed to go through several appeals to the Vermont Supreme Court," Stevens said.

The Florida lawyer credited his colleagues with the accomplishment.

"If it wasn't for the tenacity of my co-counsel Russell Barr and Chandler Matson, I'm confident that none of these plaintiffs would be in a position to receive any relief," Stevens said. "That would have been an absolute travesty and a true miscarriage justice."

Fraud

Court records show 850 global investors paid $500,000 each into legitimate government-sanctioned projects, which amounted to around $500 million. But they later discovered a Miami businessman and others had defrauded participants in the programs, which encourage foreign nationals to invest in job-creating ventures in exchange for a chance to earn U.S. permanent residency.

The projects included hotels and a biomedical facility, which never came to fruition.

The state did not admit guilt or complicity in the settlement, but attorneys had alleged some officials were aware of the problem and did nothing to stop it.

Miami resident Ariel Quiros, the former owner of Jay Peak and Burke Mountain ski resorts in northern Vermont, remains jailed after pleading guilty for his part in the 8-year fraud. The Securities and Exchange Commission brought charges against him in the U.S. District Court for the Southern District of Florida in 2016. 

Quiros was sentenced to a 5-year prison term in 2022, while advisor William Kelly of Fort Lauderdale  was sentenced to three years of supervised release and ordered to pay $8.3 million in restitution.

A third defendant, Vermont resident William Stenger, was also sentenced for his involvement in the scheme.

Related story: Miami Businessman Pleads Guilty in Vermont Ski Fraud Case

The 8-figure settlement will be paid into the Jay Peak government-appointed receivership, held by Fort Lauderdale attorney Michael Ira Goldberg of Akerman LLP since 2016.

Goldberg was also instrumental during the trial and settlement negotiations in Vermont.

"We are very pleased that the receivership and the investors were able to reach an agreement with the state of Vermont, and we look forward to continuing to work with the state of Vermont in an effort to hopefully obtain green cards for all of the investors," Goldberg said.

About 150 investors still await immigrant status, Goldberg said.

Attorney General Charity Clark said, "The state will continue its support of investors' pursuit of Permanent Resident Cards, which, if successful, will reduce the state's overall settlement payment by $4 million."