Obama, Green Energy and Colorado
A part of President Obama’s failed green energy initiative was a part of an interview, done by a local Denver television station. The company in question, Abound Solar, is currently under investigation by the Weld County District Attorney for securities fraud allegations.
In 2010 Abound was awarded a $400 million loan from the U.S. Department of Energy (DOE). Abound used approximately $70 million of the funds before laying off most of its employees, suspending operations and moving towards a bankruptcy filing in June of 2012.
Back in 2010 President Obama announced that “the Department of Energy is awarding nearly $2 billion in conditional commitments from the Recovery Act to two solar companies.” One of the companies names was, Abound Solar. The president touted Abound Solar as a company which would create “more than 2,000 construction jobs and 1,500 permanent jobs” at two new plants which “When fully operational … will produce millions of state-of-the-art solar panels each year.”
In September auctioneers sold off equipment from the company’s now-defunct manufacturing plant in Longmont, Colorado, in part to settle a $1.7 million tax bill owed to Weld County. The Weld County DA’s office is launching a three pronged investigation into Abound. They are investigating:
Possible instances of securities fraud based on allegations that Abound officials knew the company was selling defective products but solicited investments without telling investors about the deficiencies.
Secondly the allegation that a bridge loan received by Abound was used to keep the company afloat until it received federally guaranteed loans.
The third allegation centers on possible consumer fraud and whether officials at Abound knowingly sold defective products to consumers.
Both Colorado and American taxpayers are out $68 million, as a result of the Abound Solar failure. And unlike the president, we’re not laughing.