Audit finds inadequate state oversight in Vermont’s largest fraud case

By LISA RATHKE
Associated Press

A state audit has found that Vermont did not provide adequate oversight to prevent the massive fraud that occurred in ski area and other development projects funded by foreign investors’ money through a special visa program. The financial scandal first revealed in 2016 shook the state and the economically depressed region called the Northeast Kingdom. The state auditor wrote in the report released Thursday that his office “found a pattern of misplaced trust, unfortunate decision-making, lengthy delays, and missed opportunities to prevent or minimize fraud.” Three men, including the former owner of Jay Peak and Burke resorts, the former president of Jay Peak, and another man were sentenced to prison.