Massive Fraud Scheme That Shook Vermont’s Northeast Kingdom

April 14, 2026, marks the anniversary of the exposure of a massive fraud scheme known as Kingdom Con, which profoundly impacted Vermont’s Northeast Kingdom. The financial scandal, first revealed in 2016, became the largest fraud case in the state’s history.

The ‘Kingdom Con’ Fraud Scheme

The scheme centered on the misuse of the federal EB-5 visa program, which allows foreign nationals to obtain U.S. Residency if they invest $500,000 in projects located in economically struggling regions, provided the projects create a specific number of jobs.

Bill Stenger and Ariel Quiros, partners in the Jay Peak and Q Burke resorts, raised approximately $400 million from around 800 investors across countries including Vietnam, South Africa, and Brazil. These funds were intended for development projects at the ski resorts and in Newport.

However, the U.S. Securities and Exchange Commission accused Stenger and Quiros of operating a Ponzi-like scheme. Instead of funding the promised developments, the pair diverted investor money into various financial accounts and shell companies. In the case of Ariel Quiros, funds were diverted for his personal benefit.

The scale of the operation involved 100 accounts across 10 different financial institutions, according to Susan Donegan, the commissioner of the Vermont Department of Financial Regulation.

State and Federal Response

The fraud came to light in April 2016, leading Governor Peter Shumlin to announce state and federal accusations against Stenger and Quiros at the Statehouse. Shumlin described the event as a dark day for Vermont and stated that the state felt betrayed.

Senator Patrick Leahy, a proponent of the EB-5 program, expressed shock and sadness over the allegations, noting that Stenger and Quiros had previously testified before a Senate committee regarding the virtues of the EB-5 program five years prior to the accusations.

Legal proceedings eventually concluded with Ariel Quiros being sentenced in 2022 to five years in prison. His conviction was tied to a failed plan to construct a biotechnology plant in Newport using tens of millions of dollars raised through the EB-5 program.

Audit and Oversight Failures

Following the scandal, the former attorney general of Vermont requested an audit of the state’s involvement in the Jay Peak and Burke resort projects to address the resulting loss of public trust in state government.

A state audit released on March 28, 2024, concluded that Vermont failed to provide adequate oversight to prevent the fraud. State Auditor Doug Hoffer described the state’s failures as follows:

In short, we found a pattern of misplaced trust, unfortunate decision-making, lengthy delays, and missed opportunities to prevent or minimize fraud

Doug Hoffer, State Auditor

Other Historical Events of April 14

In addition to the exposure of the Northeast Kingdom fraud, other events in Vermont history occurred on this date:

• Vermont recorded its first million-dollar lottery winner.

Other recent historical milestones in April include the start of Vermont’s sheep boom on April 10, the expulsion of Iranian college students from the U.S. On April 9, 1980, the passage of a total solar eclipse on April 8, 2024, and the enactment of the state’s bottle deposit law on April 7.