The Securities and Exchange Commission on Friday charged a California-based couple with orchestrating a nearly billion-dollar Ponzi scheme involving alternative energy tax credits.
According to the SEC’s complaint, Jeffrey and Paulette Carpoff raised approximately $910 million from 17 investors between 2011 and 2018 by offering securities in the form of investment contracts through their two solar generator companies, DC Solar Solutions Inc. and DC Solar Distribution Inc.
“The Carpoffs allegedly promised investors tax credits, lease payments, and profits from the operation of mobile solar generators,” according to the SEC complaint.
In reality, the complaint alleges, most of the generators were never manufactured, and the vast majority of the purported lease revenue paid to investors in fact came from new investor funds.
The U.S. Attorney’s Office for the Eastern District of California announced criminal charges against Jeffrey and Paulette Carpoff the same day.