Convicted EB-5 fraudster in Vermont aims to end supervised release sooner

A Florida resident who completed a previous federal sentence for fraudulent activity connected to the EB-5 scandal in Vermont is currently petitioning to reduce the duration of his court-mandated supervised release. This individual’s attorney, Robert Goldstein, filed a request in federal court this week in Burlington, urging Judge Geoffrey Crawford to terminate the three-year supervised release period one year ahead of schedule.

Goldstein emphasized that his client, William Kelly, has utilized his time in prison to evolve into a more responsible and law-abiding individual. Despite facing various constraints during his supervised release, Kelly has exhibited stability and commitment to abiding by the law. He now wishes to continue his law-abiding lifestyle without the limitations associated with supervised release.

Both Goldstein and the U.S. Attorney’s Office for Vermont, which handled Kelly’s case, were unavailable for comment on Friday regarding this matter.

Back in April 2022, Judge Crawford sentenced Kelly to 18 months in prison after pleading guilty to conspiracy to commit wire fraud and concealing material information. Following his prison term, the judge directed Kelly to undergo three years of supervised release. This supervision entails regular probation officer check-ins and travel constraints.

Court records indicate that Kelly played a significant advisory role to Ariel Quiros, the former owner of Jay Peak ski resort, in executing detrimental decisions and engaging in a divisive scheme. Kelly, along with Quiros and Bill Stenger, the resort’s former president, was indicted in May 2019 for their involvement in a failed $110 million biomedical research facility project in Newport aimed at attracting foreign investors through the EB-5 visa program.

The project was denounced by the U.S. Securities and Exchange Commission as essentially fraudulent, leaving investors without returns, rendering them ineligible for U.S. residency through the EB-5 program by failing to sustain job creation. Prosecutors labeled Kelly as the “consummate fixer” who strategically attempted to deceive regulators.

With a year left in his supervised release, Kelly, 76, is grappling with several medical conditions such as chronic diabetes and heart disease. Despite these health challenges, Kelly has been actively participating in community-building efforts post-release, with his family, church, and local community playing pivotal roles in his transformation.

Furthermore, Kelly has been diligently paying his restitution of approximately $8.3 million as part of his sentence, with these payments deducted from his social security benefits. Although the exact monthly restitution amount remains undisclosed, prior court documents indicate that monthly payments should amount to at least 10% of Kelly’s gross earnings.

Judge Crawford has yet to deliver a verdict on Kelly’s request for early termination of supervised release, leaving the outcome of the motion uncertain at this time.