Top state officials knew that portions of a long-running plan to develop areas of Vermont’s northeastern corner were part of a Ponzi scheme, but did nothing to stop the project’s last phase, the construction of a hotel project at the Burke ski resort, a new lawsuit alleges.

The suit filed Tuesday in U.S. District Court in Burlington alleges that rather than warn foreign investors seeking U.S. residency through the EB-5 visa program the state allowed the completion of the QBurke hotel project.

“The State’s overriding interest was in ensuring that the ski resort at Burke would avoid the fate of Newport, Vermont… and ensuring that the dozens of Vermont contractors, materialmen, and suppliers would be paid for their contracts building Burke’s hotel,” the suit said.

Charity Clark, a spokesperson for the state attorney general, said Wednesday the office is reviewing the complaint “and will respond in the coming weeks.”

The suit was referring to…

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