A Vacaville man was sentenced to eight years in prison on Tuesday for participating in a billion-dollar Ponzi scheme involving an energy company called DC Solar, according to the U.S. Department of Justice.
Alan Hansen, 51, pleaded guilty in July 2020 to conspiracy to commit an offense against the United States and aiding and abetting money laundering.
DC Solar manufactured mobile solar generator units that were mounted on trailers, prosecutors said. Jeff and Paulette Carpoff, both 51 and from Martinez, solicited investors for the venture by claiming that there were federal tax benefits associated with investments in alternative energy such as solar.
However, according to the DOJ, they sold solar generators that did not exist to investors and made it appear as if the generators existed in locations that they did not. The Carpoffs created false financial statements and obtained false lease contracts in order to conceal their fraud, prosecutors said.
“In reality, at least half of the approximately 17,000 solar generators claimed to have been manufactured by DC Solar did not exist and DC Solar paid early investors with funds contributed by later investors,” a spokesperson for the DOJ said.
Hansen was an employee of a telecom company with which DC Solar had done some limited business. Hansen accepted $1 million from co-conspirators at DC Solar to sign a false contract to “induce substantial investment by victims in DC Solar,” prosecutors said.
Upon signing the contract, Hansen left his job and went to work for DC Solar at a “significant” pay increase, eventually becoming an executive with the company. In that role, Hansen forged the signature of a former employee to secure a fraudulent agreement that was used to further soak victims in the Ponzi scheme.
DC Solar paid him for his fraud via a series of interstate wire transfers to an account he created in the name of a consulting company, according to the DOJ.
“Hansen knew the money he received came from payments by DC Solar investors and that DC Solar was deceiving them to induce those payments,” prosecutors said.
As for the Carpoffs, Jeff was sentenced to 30 years in prison in November 2021 and was ordered to pay $790.6 million in restitution for conspiracy to commit wire fraud and money laundering. Paulette Carpoff has pleaded guilty to conspiracy to commit an offense against the United States and money laundering and is scheduled to be sentenced on June 28. She is facing a maximum sentence of 15 years in prison.
Two other men were sentenced and fine for their part in the scheme as well. Joseph Bayliss, 46, of Martinez, was given three years in prison and was ordered to give back $481.3 million on Nov. 16, 2021. Robert A. Karmann, 55, from Clayton, was sentenced to six years in prison and ordered to give back $624 million.
Two more men in on the scheme are set to sentenced in June. Ronald Roach, 55, of Walnut Creek will be sentenced on June 28 and faces 10 years in prison and Ryan Guidry, 45, of Pleasant Hill will be sentenced on June 7; he faces 15 years in prison, according to the DOJ.
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That’s it? Eight years?
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Then ALL of those eight years should be served at Pelican Island.
seems like this vacaville dude was a patsy…. only 1 mil in a billion scheme??? They should have tacked another 8 years on to that for stupidity…
Just sayin’
The word around the street is that he actually black mailed Carpoffs, which have offered him a 1mil check and other perks. I cannot confirm or deny…
Notice all the kick back government actors. Are all not on the list. Fleecing America at it s finest.
I interviewed for a position as assistant controller there (assisting Patricia). I’m SO glad I didn’t get the job! Didn’t care for their hiring practices or policies.
What makes them think they’d get away with this?
They should have just gone into politics.