Frequently Asked Questions
How Is Friends Of Burke Mountain Organized?
Friends of Burke Mountain, Inc. is a Vermont nonprofit corporation and a 501(c)(3) charitable organization. It is governed by a Board of Directors. In addition, Friends of Burke Mountain has an Advisory Council of up to 100 members. The Advisory Council is made up of volunteers, donors, and others who contribute to the success of the organization.
What Is The Difference Between Burke Area Community Forum Facebook Group And Your Organization?
The Burke Area Community Forum is an independent Facebook Group originally started by some of the founders of Friends of Burke Mountain, Inc. after QBurke Mountain and QBurke Hotel laid off approximately 180 workers. The Friends of Burke Mountain Facebook Group remains an open forum for, as of this writing, more than 4,000 Facebook members, including current and former employees, Burke area residents, pass holders, local businesses, community leaders, skiers, boarders, bikers, and friends and family who are concerned about the Mountain’s future.
Why Does The Friends Of Burke Mountain, Inc. Have Its Own Facebook Page and What Is Its Purpose?
Our organizational Facebook page provides an official channel for information relating to the Friends of Burke Mountain, Inc.
Are My Contributions to Friends Of Burke Mountain Tax Deductible?
Yes, Friends of Burke Mountain, Inc. has been designated by the IRS as a 501(c)(3) non-profit charitable organization. Please consult your tax advisor if you have any questions.
What Does It Mean That The Mountain Is In Receivership?
Q Burke Mountain Resort LLC, QBurke Mountain Resort, Hotel and Conference Center L.P. and related entities (together, “QBurke”) controlled by Florida resident Ariel Quiros Sr. owned the Mountain and the Hotel. QBurke, Mr. Quiros and others are the defendants in a pending civil lawsuit filed by the U.S. Securities and Exchange Commission (the “SEC”) on April 12, 2016. The SEC asked the U.S. District Court for the Southern District of Florida (because at least some of the QBurke entities are organized under Florida law and Mr. Quiros is a resident of Florida) to appoint a receiver to manage Burke Mountain and the other QBurke businesses while the lawsuit is pending. The Receiver, in turn, appointed Leisure Hotels and Resorts (hyperlink http://www.leisurehotel.com/services/distressed-asset-management/), a company with experience in helping resorts emerge from receiverships and bankruptcies, to operate the Resort. The Receiver and Management Company reopened the Mountain, opened the hotel, and made major improvements to snowmaking systems and partnered with Burke Mountain Academy to open a new high-speed racing T-bar.
The receiver, Burke Mountain Academy, and the U.S. Ski Team also entered into a long-term agreement to make Burke Mountain an official U.S. Ski Team Development Site and to make major infrastructure improvements at the Mountain. The receiver will likely sell the resort to a new owner to conclude the receivership.
How Did The Receiver Get Appointed, What Are His Powers, And What Is His Background?
The Receiver in this case is Michael Goldberg. He is a partner at Akerman, LLP, a large national law firm. The Court, upon the recommendation of the SEC, appointed Mr. Goldberg to act as the Receiver for the QBurke projects while the litigation is pending. As the Receiver, Mr. Goldberg generally has the power to take control of the businesses, manage and operate them in the short term, account for funds and assets to the Court, locate other assets, assist in any investigation, and eventually sell the assets and businesses so that investors can be repaid. Michael Goldberg has 20 years of experience working as a court-appointed receiver and is an expert in these types of cases.
What’s The Difference Between The Receiver And The Management Company?
The Receiver, Michael Goldberg, is the Court appointed official who is in charge of managing the QBurke assets, including the Mountain and Hotel. The Management Company works for the Receiver to operate and manage Burke Mountain and Jay Peak Resort.
What Led To The Appointment Of The Receiver?
On April 12, 2016, the SEC filed a civil lawsuit against Mr. Quiros, other individuals, Q Burke, and many other entities controlled by Mr. Quiros, alleging multiple counts of securities fraud, mismanagement of funds, and other allegations stemming from the use of EB-5 investment money to develop several projects in the Northeast Kingdom. In its complaint, the SEC alleged that Quiros and others diverted $50 million of a total of $350 million raised for Northeast Kingdom projects and misused another $200 million. Read the SEC’s press release describing the complaint. On April 13, 2016, the Receiver and his appointed Management Company took over operations of Burke Mountain and Jay Peak.