US: Ryan Guidry pleads guilty in $1 billion solar energy scam

 

Ryan Guidry who was a vice-president of operations for DC Solar has pleaded guilty in a massive Ponzi Scheme that scammed investors of about $1 billion, an offence that could earn him 15 years behind the bars. The company before folding marketed solar generators as one that could provide emergency power for cellphone companies and investors put their money on the said products but never took possession of them as the generators were leased back to DC Solar which subsequently provided the generators to other companies for use. Instead of the investors to be paid back with the profits, because the investment did not bring anticipated returns, then the whole deal was turned to Ponzi as early investors got paid with the funds from other investors who invested later. Guidry became the fourth person to plead guilty in the investment of $2.5 billion with a cost implication of $1 billion on the investors including Berkshire Hathaway Inc. belonging to Warren Buffett.

The company’s owners Jeffrey and Paulette Carpoff of Martinez were named in civil lawsuits, however, they are yet to be charged with any criminal offence. The couple has been reported to have spent $19 million extravagantly on a private jet service, 20 properties and expensive cars. Many of their assets have been seized and the coupled had already authorized the government to sell some of them while some were auctioned. Meanwhile, if the couple is found not guilty of the allegations, the proceeds from the sales and auctions will be returned back to them. but if they are convicted, the proceeds will go to the affected investors.