DC Solar

DC Solar Solutions Inc., trading as DC Solar, was a Californian solar power supplier company. The company was shut down by the Federal Bureau of Investigation in 2018 after it turned out to be a billion-dollar Ponzi scheme.[1][2][3]

DC Solar
TypePrivate company
IndustryRenewable energy, Photovoltaics industry
Founded2008 (2008)
FounderJeffrey Carpoff
Defunct2018 (2018)
Headquarters
Benicia, California, United States
ProductsPhotovoltaic modules, Photovoltaic systems
Websitehttp://www.dcsolarsolutionsmfg.com (Wayback Machine)

Company history

The company was founded in 2008 in Concord, California, by Jeffrey Carpoff, an auto mechanic.[4][5] Berkshire Hathaway invested $340 million in the company.[6] The company supplied solar panels to various higher education facilities (using a child company, DC Solar Freedom, for education-related partnerships) such as California State University and Long Beach City College[7][8][9] and various NASCAR tracks;[10][11] it also sponsored Chip Ganassi Racing and several races in the NASCAR calendar in 2018.[12]

The company was raided by the FBI in December 2018 amidst allegations of Ponzi scheme associated with the company,[13] and the company later filed for Chapter 11 bankruptcy.[4] According to the FBI and a later SEC investigation, it was alleged that Carpoff and his wife, Paulette, promised 17 investors between 2011 and 2018 federal solar tax credits, lease payments, and profits, but instead spent lavishly on properties, jets, jewelry, a semi-professional baseball team (Martinez Clippers), and sponsorship deals for Chip Ganassi Racing and various NASCAR races. Meanwhile, majority of the lease revenue were being paid from new investors, and as many as three-quarters of the mobile solar generators the company claimed to have built never existed. GPS trackers purportedly attached to deployed units to verify their locations were buried instead to make it appear that the units were operational and where they were supposed to be.[3][14][15]

In 2019, federal authorities auctioned a car collection they amassed of more than 150 classic and contemporary cars, including Kyle Larson's car that won the 2018 Coca-Cola Firecracker 250 race.[16][17] The raid prompted Chip Ganassi Racing to shut down their NASCAR Xfinity Series team[18] and a lawsuit between International Speedway Corporation and SunTrust Bank regarding the fate of the generators.[19] The Carpoffs pled guilty to wire fraud and money laundering in January 2020, forfeiting $120 million in assets. Four other business partners pled guilty to crimes.[20]

Sponsorship

During 2018 DC Solar was the primary or co-primary sponsor for Chip Ganassi Racing's Kyle Larson in 16 Cup races and for three races with Jamie McMurray. It also sponsored 10 Xfinity races with Chip Ganassi and before the raids announced in November 2018 it would sponsor Ross Chastain's full-time Xfinity series ride in 2019 for Ganassi.[21] Brennan Poole was another CGR driver sponsored by the company until 2017; the following year, Poole filed a lawsuit against the team and agency Spire Sports + Entertainment for breach of contract, alleging that both conspired to take away DC Solar's sponsorship from him and move it to the No. 42 CGR Cup Series team (then driven by Larson) and that Spire's involvement representing both driver and team constituted a conflict of interest.[22][23] Spire and Chip Ganassi Racing initially cited performance reasons (lack of race victories) as the reason for termination of Poole's sponsorship;[24][25] the suit was later settled out of court after the raid of the company.

It also sponsored Xfinity Series races in 2018 at Phoenix Raceway and Las Vegas Motor Speedway (both now since named LS Tractor 200 and Alsco 300), the NASCAR Truck Series race at Las Vegas in 2016 (today the Strat 200; the race distance was advertised as a 350 kilometres (217 mi) race the year DC Solar sponsored the event) and the infield "FanGrounds" at Richmond Raceway.

References
  1. Cahill, Nick (October 23, 2019). "Two Plead Guilty in Solar Energy Ponzi Scheme". Courthouse News Service. Archived from the original on December 7, 2019. Retrieved December 7, 2019.
  2. Roselund, Christian (May 28, 2019). "DC Solar gets liquidated". pv magazine USA. Archived from the original on December 7, 2019. Retrieved December 7, 2019.
  3. Stanton, Sam (October 22, 2019). "Two enter guilty pleas in what federal prosecutors call $2.5 billion Ponzi scheme". The Sacramento Bee. Archived from the original on October 28, 2019. Retrieved December 7, 2019.
  4. Weilenman, Donna Beth (February 6, 2019). "DC Solar files Chapter 11 bankruptcy, court papers show multi-million dollar debt". Martinez News-Gazette. Archived from the original on March 28, 2020. Retrieved August 13, 2020.
  5. Eckhouse, Brian; Chiglinsky, Katherine; Chediak, Mark (June 4, 2019). "DC Solar scammers serve as cautionary tale for solar investors". Renewable Energy World. Archived from the original on June 16, 2020. Retrieved August 13, 2020.
  6. Cao, Sissi (May 10, 2019). "Warren Buffett Was Scammed Out of $340 Million in a Ponzi Scheme". The New York Observer. Archived from the original on June 7, 2020. Retrieved August 13, 2020.
  7. "CSUN Partners with DC Solar Freedom to Bring Off-Grid Solar Power to Campus at No Cost". CSUN Today. California State University. April 21, 2016. Archived from the original on April 22, 2016. Retrieved August 13, 2020.
  8. "DC Solar Freedom Brings Off-Grid Solar Power to LBCC". Long Beach City College. Archived from the original on October 6, 2020. Retrieved October 6, 2020.
  9. Whitman, Elizabeth (February 27, 2019). "The Bizarre Link Between Phoenix and an Imploding California Solar Company". Phoenix New Times. Archived from the original on February 28, 2019. Retrieved September 2, 2020.
  10. Stern, Adam (April 16, 2018). "DC Solar expanding to more SMI, ISC tracks". Sports Business Journal. Archived from the original on October 6, 2020. Retrieved August 13, 2020.
  11. "Solar operation accused in $800M fraud scheme lists Kansas Speedway as a creditor". Kansas City Business Journal. American City Business Journals. June 10, 2019. Retrieved August 13, 2020.
  12. JohnWallStreet (January 27, 2020). "NASCAR, Chip Ganassi Racing Duped In Billion Dollar Ponzi Scheme, Affiliation Unlikely to Leave Stain on Sport". Sports Illustrated.
  13. Barnard, Cornell (December 22, 2018). "FBI raids East Bay solar company Headquarters, CEO's home searched". ABC7 San Francisco. Retrieved August 13, 2020.
  14. Weilenman, Donna Beth (February 27, 2019). "FBI agent suggests DC Solar operations 'Ponzi Scheme'". Martinez News-Gazette. Archived from the original on March 28, 2020. Retrieved August 13, 2020.
  15. "Owners of solar company that caused loss for Buffett plead guilty over Ponzi scheme". Reuters. January 24, 2020. Archived from the original on February 18, 2020. Retrieved February 18, 2020.
  16. Gastelu, Gary (October 17, 2019). "Massive car collection seized from owners of bankrupt DC Solar up for auction". Fox News. Archived from the original on December 7, 2019. Retrieved December 7, 2019.
  17. McFadin, Daniel (September 25, 2019). "DC Solar bankruptcy auction includes Kyle Larson's Daytona-winning car". NBC Sports. Archived from the original on December 19, 2019. Retrieved September 2, 2020.
  18. Utter, Jim (January 5, 2019). "Chip Ganassi Racing shuts down Xfinity program for 2019". Motorsport.com. Retrieved August 13, 2020.
  19. Fernandez, Frank (September 8, 2019). "ISC, SunTrust sue each other over generators tied to company FBI accused of 'Ponzi Scheme'". The Daytona Beach News-Journal. Archived from the original on February 11, 2020. Retrieved September 2, 2020.
  20. "California couple pleads guilty to plotting $1B Ponzi scheme". AP NEWS. Archived from the original on January 27, 2020. Retrieved January 27, 2020. Prosecutors alleged that the company engaged in $2.5 billion in investment transactions between 2011 and 2018, costing investors $1 billion. Among the investors was Warren Buffett’s Berkshire Hathaway Inc., which lost some $340 million.
  21. DeGroot, Nick (November 10, 2018). "Ross Chastain to run full Xfinity schedule with Ganassi in 2019". Motorsport.com. Archived from the original on October 6, 2020. Retrieved September 11, 2020.
  22. Vincent, Amanda (June 29, 2018). "Brennan Poole sues Chip Ganassi Racing NASCAR team". The Drive. Time Inc. Retrieved December 5, 2018.
  23. "Brennan Poole files lawsuit against Chip Ganassi Racing". NBC Sports. June 28, 2018. Retrieved December 5, 2018.
  24. Vincent, Amanda (July 3, 2018). "Chip Ganassi Racing Has Answer for Brennan Pooles Accusations". The Drive. Time Inc. Retrieved December 5, 2018.
  25. "Brennan Poole sues Chip Ganassi Racing, Spire Sports Agency over sponsorship conspiracy". Autoweek. June 28, 2018. Retrieved December 5, 2018.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.