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  • DOE-Backed Abound Solar Facing Fraud Investigation in Colorado

    Abound Solar, the now-bankrupt solar company and recipient of a $400 million Department of Energy loan guarantee, faces a three-pronged investigation from Weld County, CO, for alleged securities and consumer fraud, along with misleading financial institutions.

    The Denver Post reports:

    The securities-fraud investigation stems from allegations that “officials at Abound Solar knew products the company was selling were defective, and then asked investors to invest in the company without telling them about the defective products,” the DA’s office said in a news release.

    Similarly, the consumer-fraud allegation is that Abound knowingly sold defective panels to customers.

    The third subject of investigation is that Abound allegedly misled financial institutions when the company was seeking loans.

    The Post also reports that no criminal charges have been filed.

    Abound Solar’s demise could cost taxpayers as much as $60 million, after the company tapped $70 million of its DOE loan guarantee.

    After a Daily Caller story revealed documents alleging the company knowingly sold “faulty, underperforming product” and suggested a possible intent to mislead lenders, another Denver media outlet reported documents indicating “catastrophic failure” by the solar manufacturer’s panels.

    The solar manufacturer also faces congressional scrutiny:

    Chairman Fred Upton (R-MI), Representative Cliff Stearns (R-FL), and Representative Cory Gardner (R-CO) issued a letter to Energy Department Secretary Steven Chu “requesting key documents and information concerning the loan in light of recent news reports highlighting Abound’s technological and manufacturing problems,” according to a statement.

    “Recent reports and publicly available documents indicate that persistent technological problems contributed to Abound’s inability to remain commercially viable and, ultimately, its bankruptcy. We have questions about what role these technological problems played in DOE’s decision to suspend Abound’s loan guarantee disbursements in September 2011, and when DOE first became aware of these problems,” they wrote.

    The Weld County investigation and congressional document probe are unrelated, according to the Post report.

    In July, Abound Solar executives blamed Chinese government subsidies and “aggressive price-cutting” for the company’s failure in testimony before the House Oversight and Government Reform Committee.

    Posted in Scribe [slideshow_deploy]

    4 Responses to DOE-Backed Abound Solar Facing Fraud Investigation in Colorado

    1. Badger says:

      I've never been able to understand that various agencies can expend funds without congressional approval. Doing so equates to unethical practice. how do they get by with their actions? Or do those in congress rather not be bothered how our nations resources are being mishandled.?

    2. Lloyd Scallan says:

      HOW MUCH MORE AMERICA? How can anyone support this Obama and his administration? How many more times before Americans realize, under Obama, this is no longer the America we grew-up in?

    3. sandcanyongal says:

      It’s deeper than Obama. Point the fingers straight at Congress, Kenneth Salazar, Supreme Court Judges and Wall Street. They’re so busy bashing, one-upping, grand-standing, photographed like celebrities, warring and invading countries for their oil and precious resources and all on the take that they haven’t payed any attention to administering, which is why they were voted in to do. It’s time to clean house and dump every last one of them and write a new constitution, by and for the people. They’re so afraid that they need drones to guard them against the wrath bearing down on them by the sovereign people. The mentioned legislators made the rules, not you or me. America is in shambles because they want it this way. They’re literally breaking the back of this country for money.

    4. Penny Melko says:

      It's deeper than Obama. Point the fingers straight at Congress, Kenneth Salazar, Supreme Court Judges and Wall Street. They're so busy bashing, one-upping, grand-standing, photographed like celebrities, warring and invading countries for their oil and precious resources and all on the take that they haven't payed any attention to administering, which is why they were voted in to do. It's time to clean house and dump every last one of them and write a new constitution, by and for the people. They're so afraid that they need drones to guard them against the wrath bearing down on them by the sovereign people.

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