Burned by Solar

Oh My Fraud

In the era of climate change, it isn’t just about saving the planet using sustainable methods of energy, it’s about making a fortune from sustainable methods of energy. In this episode, Caleb and Greg discuss the story of DC Solar, a manufacturer of mobile solar generators.

Sponsors
Forwardly - https://ohmyfraud.promo/forwardly
Tabs - https://ohmyfraud.promo/tabs
Practice Protect - https://ohmyfraud.promo/protect

• (00:00) - Introduction to the Unlikely Innovator
• (01:00) - Listener Reviews and Reactions
• (02:16) - Jeff Karpoff's Early Life and Struggles
• (09:19) - The Birth of DC Solar
• (12:27) - The Solar Eclipse Generator
• (13:36) - Hollywood's Interest and Initial Success
• (25:21) - Cracks in the Business Model
• (29:30) - The Ponzi Scheme Unveiled
• (30:58) - Jeff Karpoff's Extravagant Lifestyle
• (32:47) - NASCAR Sponsorship and DC Solar's Rise
• (35:18) - The IRS and Investor Scrutiny
• (36:29) - Bogus Reports and Fake Leases
• (38:18) - Massive Deals and Manufacturing Issues
• (39:49) - Fraudulent Practices Unveiled
• (53:02) - The Whistleblower and Legal Consequences
• (56:57) - The Aftermath and Loose Ends
• (58:30) - Lessons Learned and Final Thoughts

HOW TO EARN FREE CPE

In less than 10 minutes, you can earn 1 hour of NASBA-approved accounting CPE after listening to this episode. Download our mobile app, sign up, and look for the Oh My Fraud channel. Register for the course, complete a short quiz, and get your CPE certificate.

Download the app:

Apple: https://apps.apple.com/us/app/earmark-cpe/id1562599728
Android: https://play.google.com/store/apps/details?id=com.earmarkcpe.app

Questions? Need help? Email [e-mail].

CONNECT WITH THE HOSTS

Greg Kyte, CPA
Twitter: https://twitter.com/gregkyte
LinkedIn: https://www.linkedin.com/in/gregkyte/

Caleb Newquist
Twitter: https://twitter.com/cnewquist
LinkedIn: https://www.linkedin.com/in/calebnewquist/

Email us at [e-mail]

Sources:

• The Billion-Dollar Ponzi Scheme That Hooked Warren Buffett and the U.S. Treasury [The Atlantic]
• Massive $1 billion solar power ponzi scheme results in the largest single-owner car collection ever auctioned by the U.S. Marshals Service — including Burt Reynolds’ Trans Am [AP]
• Obama Administration Announces Columbus, OH Winner of the $40 Million Smart City Challenge to Pioneer the Future of Transportation [WH]
• Federal agents raid home, business of Martinez resident [Martinez News-Gazette]
• DC Solar companies file Chapter 11 bankruptcy, Carpoffs leave leadership roles [Martinez News-Gazette]
• DC Solar files Chapter 11 bankruptcy, court papers show multi-million dollar debt [Martinez News-Gazette]
• Two plead guilty to participation in a Ponzi scheme involving $2.5 billion in transactions and $1 billion in loss [DOJ]
• Third Conspirator Pleads Guilty to Participation in a Ponzi Scheme Involving $2.5B in Transactions and $1B in Loss [DOJ]
• Fourth Conspirator Pleads Guilty to Participation in a Ponzi Scheme Involving $2.5B in Transactions and $1B in Loss [DOJ]
• Top Executives Plead Guilty to Participating in a Billion Dollar Ponzi Scheme—the Biggest Criminal Fraud Scheme in the History of the Eastern District of California [DOJ]
• Seventh Conspirator Pleads Guilty to Participation in the DC Solar Ponzi Scheme Involving $2.5B in Transactions and Nearly $1B in Loss [DOJ]
• DC Solar Owner Sentenced to 30 Years in Prison for Billion Dollar Ponzi Scheme [DOJ]
• DC Solar Owner Sentenced to Over 11 Years in Prison for Billion Dollar Ponzi Scheme [DOJ]
• Pleasant Hill man sentenced to 6.5 years in prison for billion dollar DC Solar Ponzi scheme [IRS]
• Vacaville Man Sentenced to 8 Years in Prison for Billion Dollar DC Solar Ponzi Scheme [DOJ]
• ​​Nixon Peabody Gets OK For Deal With DC Solar Investors [Law360]
• Berkshire Takes Tax Hit as Victim of ‘Ponzi-Type’ Solar Scheme [Bloomberg]
• Martinez Clippers [Wikipedia]
• City ends Clippers license agreement [Martinez News-Gazette]
• Carpoff’s seized auto collection headed to auction [Martinez News-Gazette]
• Nearly 150 Collector Cars Seized in an FBI Raid Head to Auction [Motortrend]