Securities and Exchange Commission (SEC) indicted four individuals from California for fraud, who deceived the company's investors 808 Renewable Energy Corp.
Main accused, founder and CEO of the company 808 Renewable Energy Corp. Patrick Carter, together with a number of top managers engaged in fraud with 2009 years within five years, having kidnapped more $30 million from hundreds of investors.
According to the complaint, filed in the U.S. District Court for the Central District of California, the accused misled the investors, falsely claiming that investors' money will be used to purchase new equipment and expand activities 808 Renewable Energy Corp. Instead, Carter paid millions for "consulting services" to the company. 808 Investments LLC, which he solely owns, which allowed him to maintain his lavish lifestyle.
The regulator saw fraud and a Ponzi scheme in the incident. Besides, in 2013 year Carter cheated, announcing, that the New York Stock Exchange pre-approved the issue of shares 808 Renewable Energy Corp. for AMEX trading, at this point he sold millions of his own shares to investors.
“We affirm, that Patrick Carter orchestrated a fraudulent scheme using 808 Renewable Energy Corp., to make millions, – said the director of the SEC in Los Angeles Michelle Lane. – When investors expected, that the money will be used for the benefit of the company, Carter and his associates plundered 808 Renewable Energy Corp.».
SEC litigation to start soon in Carter case. Earlier, Carter's lawyers offered to settle the issue out of court, I paid $1,56 million for the settlement of the issue. However, the SEC has not yet made a deal..
