AJOR
ANNOUNCEMENT INVOLVING THE JP
PROJECT SCANDAL.
>> -- ALLEGATIONS AGAINST JAMES
INAPPROPRIATELY TRANSFERRED
PEAK.
FAILED TO ADEQUATELY SUPERVISE
HIS EMPLOYEES IN IT NOT FOLLOW
HIS OWN SUPERVISORY PROCEDURES.
THAT SETTLEMENT RESULTED IN A
$1.4 MILLION ADMINISTRATIVE
PENALTY FOR VERMONT.
TODAY, WE ARE HERE TO ANNOUNCE A
NEW SETTLEMENT REACHED WITH THE
THIS AFTERNOON.
THAT SETTLEMENT RECOVERS $145.5
MILLION BRINGING THE TOTAL
$150 MILLION.
I AM PLEASED TO SHARE THAT THE
MONEY WILL BE USE BY THE
RECEIVER TO PAY ALL 42
CONTRACTORS AND 513 TRADE
CREDITORS WHICH ARE THE OTHER
UNPAID BUSINESSES, NONPROFITS,
AND MUNICIPALITIES AND 169
PROJECT INVESTORS.
EACH OF THESE COMPANIES WILL BE
PAID 100 CENTS ON EVERY DOLLAR
THEY WERE OWED.
WELL THIS IS NOT WIPE THE SLATE
CLEAN FOR THOSE HARMED BY THIS
NEWS.
AS A FORMER CONTRACTOR MYSELF I
UNDERSTAND THE FINANCIAL AND
EMOTIONAL BURDEN WHEN YOU HAVE
DONE THE WORK BUT HAVEN'T PAID.
EMPLOYEES.
SOMETIMES, AND BILLS HAVE TO GO
UNPAID BECAUSE YOU HAVEN'T BEEN
PAID FOR THE WORK THAT YOU DID.
THESE CONTRACTORS HAVE BEEN
STRUGGLING WITH THAT FOR MANY
MONTHS.
IT HAS BEEN A PRIORITY OF MY
WERE PAID.
I WANT TO THANK MICHAEL GOLDBERG
AND THE DFR COMMISSIONER FOR
POSSIBLE.
I KNOW IT HAS BEEN MEANINGFUL
FOR THEM TO SHARE THIS IS TODAY.
MR. GOLDBERG WILL DISCUSS THE
SETTLEMENT FURTHER BUT I WANT TO
TALK MORE ABOUT THE IMPACT THIS
THE STATE.
200 41 VERMONT-BASED
ORGANIZATIONS WILL RECEIVE OVER
$9 MILLION.
THIS INCLUDES 35 VERMONT
CONTRACTORS WHO WILL RECEIVE
$6.4 MILLION IN TRADE CREDITORS
RECEIVING $2.6 MILLION.
THEY LOST SIGNIFICANT SUMS FROM
THIS MATTER AND THOSE LOSSES DID
NOT JUST AFFECT THE UNPAID
ECONOMY.
A FEW EXAMPLES OF THE POSITIVE
IMPACT -- LYNDONVILLE A ELECTRIC
DEPARTME, $350,000.
SIMILARLY, VERMONT ELECTRIC
CO-OP WILL BE PAID $385,000 FOR
PAST ELECTRIC USES SAVING 30,000
RATEPAYERS FROM EXPERIENCING
HIGHER RATES.
THE SEWER DEPARTMENT FROM TROY
WILL RECEIVE $167,000 FOR WATER
TREATMENT SERVICES, SAVING LOCAL
PROPERTY OWNERS FROM BEARING THE
EXPENSE.
THE VOLUNTEER FIRE DEPARTMENT
WILL BE PAID MORE THAN $7,000.
TENS OF THOUSANDS OF DOLLARS
WILL BE USED TO PAY LOCAL
VERMONT BUSINESSES FOR SERVICES
CITY PRINTERS, CAPITAL CANDY
COMPANY, LYNDONVILLE HARDWARE,
CO CO PLUM APPLIANCES, DAVIS
DAILY FAMILY PROVISIONS, FRANCE
ENERGY, BURTON SNOWBOARDS,
CONSULT THE WASTE MANAGEMENT
RESULT IS THAT ADDITIONAL
FUNDING WILL SUPPORT CONTINUE
KINGDOM.
BURKE MOUNTAIN WILL RECEIVE $3
MILLION FOR DEFERRED
COMPENSATION IN [INDISCERNIBLE]
THE PERKS HE RESORT IN 2005.
$1 MILLION OF THAT MONEY WILL BE
USED TO CONSTRUCT A NEW SKI
LIFT.
AN ADDITIONAL $17.5 MILLION WILL
BE USED TO COMPLETE COTTAGES, A
RECREATION CENTER IN FIELDS AS
PART OF THE HOTEL AND JAY PEAK.
DUKE CONSTRUCTION WHICH HAD OR
BEEN SELECTED FOR THE PROJECT
WILL SERVE AS THE CONTRACTOR.
WHILE THIS IS POSITIVE NEWS EACH
OF US UNDERSTAND WE HAVE A LOT
OF FOR TO DO.
FURTHER RESTORE THE FAITH IN THE
PROGRAM AND BRING JUSTICE TO
THIS CASE.
I'M VERY GRATEFUL TO MR.
GOLDBERG FOR HIS WORK IN
SECURING THIS SETTLEMENT.
OVER THE PAST YEAR MR.
GOLDBERG'S EFFORTS KEPT THE
LIGHTS ON AND JAY PEAK, KEPT
HUNDREDS OF VERMONTERS EMPLOYED
IN ANOTHER RESORT TO TAKE
ADVANTAGE OF A GREAT SKI SEASON
THIS DID NOT LOOK POSSIBLE ONE
YEAR AGO.
BY PAYING BACK THERE WAS
CREDITORS, IT HAS ALSO PUT THE
RESORT IN A BETTER POSITION FOR
THE FUTURE SALE WHICH WILL BE
ANOTHER STEP FORWARD FOR THE
NORTHEASTERN KINGDOM.
I WOULD LIKE TO INVITE MR.
GOLDBERG TO GIVE AN OVERVIEW OF
WE WILL TAKE YOUR QUESTIONS.
[APPLAUSE]
>> IS THIS RESULT IS NOT THE
EFFORTS OF ANY ONE PERSON, IT IS
REALLY THE RESULT OF TEAMWORK IN
BEFORE I GET INTO THE DETAILS I
ACKNOWLEDGMENT TO THE PEOPLE WHO
TODAY.
THE SEC STARS BY FILING A
LAWSUIT AND THEY SERVE AS A
CATALYST FOR WHERE WE ARE TODAY
THEIR LAWSUIT.
WE WOULDN'T BE HERE WITHOUT THE
STATE OF VERMONT.
THE GOVERNOR'S OFFICE, THE PRIOR
ADMINISTRATION -- INCREDIBLY
HERE.
IN PARTICULAR, DFR, WHO KNOWS
THIS CASE AS WELL AS ANYBODY
BECAUSE HE HAS PROBABLY
INVESTIGATED MORE THAN ANYBODY
-- HIS EFFORTS HAVE BEEN
TIRELESS AND HE GETS A LOT OF
CREDIT.
I SPEAK TO HIM THREE OR FOUR
TIMES A WEEK.
IT IS A LITTLE STRANGE TO WANT
TO THANK RAYMOND JAMES BUT THE
WAY THEY APPROACHED THIS CANNOT
BE IGNORED.
THEY STEPPED UP TO THE PLATE AND
FACED THEIR RESPONSIBILITY AND
SET AN EXAMPLE OF HOW FIRMS
UNNOTICED.
I WANT TO THANK MY LEGAL TEAM,
PRIMARILY MY COUNSEL, JEFFREY
TUCKER AND HARLEY.