USA Updates Closed green energy company jailed for 6 years for role in billion-dollar Ponzi scheme The Daily Wire
Karman was also ordered to pay $624 million for his involvement in fraudulent acts related to DC Solar Co., which made mobile solar generator units. According to the US Attorney’s Office for the Eastern District of California, the investors were given “Generous federal tax credit” for the purchase of units.
Investors were also falsely told that the units would generate consistent revenue when in fact there was not much demand for the units according to federal officials.
The Justice Department explained, “DC Solar instead became a fraud scheme, taking money from new investors to pay old investors, which were fraudulently disguised to look like real third-party lease revenue. ”
one of the holding companies that Investment was in the project Berkshire Hathaway Inc., owned by Warren Buffett.
According to court documents, Karman and other co-conspirators, including company founder Jeff Karpoff, committed accounting and lease revenue fraud using Ponzi-like circular payments. Karpoff and others marketed DC Solar’s MSG to investors. demand and lied about its revenue from leasing to third parties,” the Feds noted in the announcement of Karman’s sentencing.
Karman and his co-conspirators then falsified operations reports, financial statements, and written summaries of projected revenue streams to present to investors. From 2016 to 2018, he used a system of “hidden circular funds” to spoof tax documents before eventually being shut down by the FBI.
Officials said a DC Solar employee was asked by Karman to “build it” after the employee was asked by an investor where some of the company’s mobile solar generator units were. Investors invested $600 million dollars in the scheme before the company was subordinated.
Other prominent persons who participated in the fraud have already been sentenced to criminal charges. Company founder Karpoff was ordered to pay $790 million in restitution and sentenced to 30 years in prison. Carpoff’s wife has pleaded guilty to conspiracy charges.
Last November, Joseph W. Bellis, an electrician who pretended to be an electrical engineer, was ordered To pay more than $481 million in restitution and was sentenced to three years in prison. Officials said they helped defraud investors by “removing and replacing the vehicle identification number (VIN) stickers affixed” to mobile solar generator units.
,[A]After a 2018 search warrant on DC Solar was executed at Karpoff’s instructions, Bellis traveled to a DC Solar warehouse in Nevada to remove approximately 200 replacement VIN stickers and destroy at least 1,000 VIN stickers stored in boxes in the warehouse. given,” federal officials noted at the time.
Several defendants linked to the scheme are also still awaiting sentencing.
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