The federal prosecutor investigating expansive fraud allegations in Vermont’s Northeast Kingdom has close ties to many of the political players touched by the scandal.
One of them is his wife.
Soon after the U.S. Securities and Exchange Commission and Attorney General Bill Sorrell announced civil charges last week against developers Ariel Quiros and Bill Stenger, U.S. Attorney Eric Miller said his office would explore potential criminal charges.
“We have been aware of the state and SEC civil enforcement efforts made public today,” Miller said in a written statement last Thursday. “My office has been conducting, and continues to conduct, an investigation designed to determine whether or not there have been violations of federal criminal law in connection with EB-5 projects in the Northeast Kingdom.”
Federal and state officials have said that Quiros and Stenger defrauded foreign investors of $200 million in what they call a “Ponzi-like” scheme. The two men used the federal EB-5 investor visa program to raise more than $350 million for a series of development projects at Jay Peak Resort, Q Burke Mountain Resort and elsewhere in the Kingdom.
Since news of the allegations broke last week, Gov. Peter Shumlin has come under heavy scrutiny for promoting the projects abroad, accepting campaign contributions from the developers and waiting until December 2014 to implement an aggressive oversight regimen. Shumlin, however, has said that the new oversight rules played a key role in unraveling the alleged fraud.
At the center of it all was Miller’s wife, Burlington attorney Liz Miller. After serving as Shumlin’s first Department of Public Service commissioner, she became his chief of staff in January 2013 and stayed on the job until May 2015. It was during that period that state officials say they grew suspicious of Quiros and Stenger and took action to enhance the state’s regulation of EB-5 projects.
According to Shumlin spokesman Scott Coriell, Liz Miller played a role in transferring oversight authority from the Agency of Commerce and Community Development to the Department of Financial Regulation.
“Liz was the governor’s chief of staff at the time and was involved in the discussions on this, as she was with many other issues,” Coriell said in an email. “Ultimately the decision was the governor’s.”
Miller herself downplayed her involvement in EB-5-related matters.
“My role on this was no different than my role on nearly all other significant matters at the agencies and departments that would cross the governor’s desk, in that I had high-level involvement and awareness of what the agencies and departments were doing,” she said.
It’s not clear whether the scope of the U.S. attorney’s investigation would include the state’s role in regulating and promoting the allegedly fraudulent projects. No evidence of wrongdoing by Shumlin or other elected officials has yet emerged. And according to the prosecutor himself, he would be removed from involvement if it did.
“As always, we’re doing this by the book,” Eric Miller told Seven Days on Tuesday. “Under clear Department of Justice rules, I have not and will not play any role in decisions that relate to the governor’s administration — including decisions on the scope of the federal investigation as it could relate to state agency actions.”
And, according to Miller, he won’t be the one to determine what constitutes a conflict.
“The department has mechanisms in place to make sure that a neutral decision-maker in Washington determines the appropriate screening in any case within the office,” he said. “That process is always a continuous one.”
The Millers also have close ties to Sen. Patrick Leahy (D-Vt.), whose office once described the senator as EB-5’s “leading champion” in Congress. Like Shumlin, Leahy has joined Stenger at EB-5 investor events abroad — in his case, in China, Vietnam and Ireland.
As the state’s senior U.S. senator, it was he who recommended Eric Miller for U.S. attorney in February 2015. At the time, Leahy praised the Sheehey Furlong & Behm partner for his “thoughtfulness, vision and depth of experience.”
On May 2, Liz Miller is scheduled to serve as a host for a Leahy fundraiser in Burlington.
Both Millers have given handsomely to Vermont Democrats over the years. Eric Miller contributed $2,250 to Shumlin’s 2010 and 2012 campaigns, according to VTDigger.org’s campaign finance database, while Liz Miller contributed $4,250 to the governor. Including those donations, they have contributed $10,050 to candidates for state office within the past six years.
At the federal level, they have donated a collective $20,400 to Democrats, according to data compiled by the Center for Responsive Politics. Recipients include President Barack Obama, Congressman Peter Welch (D-Vt.), the Democratic National Committee and the Vermont Democratic Party’s federal account.
During her time as Shumlin’s chief of staff, Liz Miller did not appear to play a major role in the governor’s campaign fundraising efforts. But she did join him at a Democratic Governors Association donor event in September 2013 at Manchester’s Equinox Resort and Spa. At the time, Shumlin was serving as chairman of the DGA, which raises money from corporations and unions to fund Democratic gubernatorial campaigns.
As host of the “chair’s retreat,” Shumlin had the opportunity to invite local business leaders to take part in a panel discussion attended by his fellow governors.
Among Shumlin’s guests? Bill Stenger.
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Shumlin is connected to Leahy and Leahy is connected to Clinton. This is business as usual for establishment politics.
Fraud involves misleading people who trusted you and had faith in your vision. Let’s be wary of insinuations or outright suggestions that those who’ve had the misfortune of being betrayed are somehow guilty by association. We do way too much of that in this country already.
It is shameful that one of EB5’s largest deals ever was brought to our state by our state, and lacked sufficient facilitation by our elected state officials. How can Shumlin escape the fray of these charges when they were under his watch? Without a proper investigation lead by someone whom Shumlin doesn’t have ties with we may not ever know the truth.
Then there’s the GMP/CVPS merger that Liz Miller pushed through when she was Commissioner of DPS. Vermont’s political elite are oh so cozy with each other. It just warms your heart.
Leahy,Shumlin and bet you Sanders also all are behind this fraud, is a surprise how??? Every one of them are greedy..getting money from other countries with promise of permanently green cards so they don’t have to leave..All the big money started looking real good so lets help ourselves and now there’s a huge hole in the middle of town, but they don’t care..But and there’s always a but isn’t there..these Senators, Governor and the rest of them will get away with this..cover thy ass..screw the little people..Glad I didn’t vote for these jerks..
The milk has spilt! The only salvage point for the people of Vermont is this coming election in November,,Make yourself heard!
I am not keen on the insinuations and inuendoes in this article. Heaven knows that in Vermont you can’t swing a cat without hitting someone’s relative. That does not make family guilty by association.
The political collusion and incestuous relationship between federal law enforcement in Burlington and our political leaders is also likely responsible for the governments decision not to prosecute The Brattleboro Retreat despite the fact that the Vermont Attorney General’s Office criminal investigation of “broad scope” is about to enter its 9th month. There is much more to the EB-5 fraud matters as well as the current criminal investigation of “broad scope” of the Brattleboro Retreat. Let’s not forget that Governor Shumlin had a very close and mutually self-serving relationship with former Retreat CEO Rob Simpson whom he affectionately referred to as a “friend’. Stay tuned folks! http://www.brattlebororetreat.info/
Where is Gov. Douglas in all this? The Jay Peak EB-5 deals have been going for a long time. Using laws that bring prosperity to an impoverished area is not wrong – it’s the right thing to do. Not having appropriate oversight is certainly a problem. This looked so good for so long – a big win for everyone – that people got complaisant is my thought.
Can not a different Federal prosecutor be selected to carry this out?