DC Solar Inc., Jeff and Paulette Carpoff, Under FBI Investigation | Goodman & Nekvasil P.A. May Recover Investor Losses
-INVESTOR UPDATE 12/2/19–
Goodman & Nekvasil, P.A. Has Learned that on October 22, 2019, U.S. Attorney McGregor W. Scott announced that Ronald Roach of Walnut Creek, California and Joseph Bayliss of Martinez, California recently pleaded guilty to their participation in a $1 billion fraudulent scheme involving a solar energy company in Benicia, California in which investors were offered huge federal tax incentives to lease mobile solar generators that could be used at racetracks and concerts and to power remote control cell phone towers remote control cell phone towers during power outages.
FBI Investigating DC Solar Inc. and Owners Jeff Carpoff and Paulette Carpoff
DC Solar Inc. is a company owned by Jeff and Paulette Carpoff that purports to be a California based company that designs, manufactures and leases renewable energy products to serve the off-grid needs of a broad and diverse marketplace – while providing investors with access to the renewable energy asset class.
Goodman & Nekvasil, P.A. has learned that the FBI raided Jeff and Paulette Carpoff’s home and businesses in December 2018. The Vallejo Times Herald reports that FBI special agent Christopher Phillips said in an affidavit that he recognized the flow of investor money from a company that manufactures mobile solar generators to a firm responsible for leasing those units to third parties. The money then was invested to investments funds, letting Carpoff and others conceal the absence of third-party leases, according to the affidavit.
The FBI’s declaration states that the total amount of money through transactions, as well as money from financial institutions provided to the DC Solar Inc., is approximately $810,738,000.
As reported by the San Francisco Chronicle [The Chronicle] the FBI Investigation found that “more than 90% of the money claimed as lease revenue was actually other investors’ money. In its declaration, the FBI found that while DC Solar Inc. represented that no less than 12000 mobile solar generators were manufactured and in use, in truth, it appears as few as 3,000 to 5,000 mobile solar generators has been assembled.” The FBI investigator concluded that “In my training and experience, the use of investor money to lull investors into believing the transactions is legitimate and profit-making is evidence of a Ponzi-type investment fraud scheme.”
The Chronicle states that an FBI review of bank records and company documents as well as interviews with former employees and bank officials showed that the scheme worked for several years, generating enormous profits. The Chronicle reports that between 2011 and 2018, the Carpoffs used investor funds to purchase at least 90 vehicles, ranging from classic Plymouths and Chevrolets to luxury European cars.
According to the Chronicle, Seth Freeman, the chief restructuring officer in DC Solar’s federal bankruptcy case, said in court filings that the company was left without any operating funds after the government seized its assets. As a result, according to the Chronicle, DC Solar is unable to market the mobile solar generators or satisfy its obligations to investors or lessees.
DC Solar Inc. Investors May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in DC Solar Inc., Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses in DC Solar, Inc. and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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