In a significant development, federal prosecutors in Sacramento, California, have formally indicted Ari Lauer, the former outside counsel for DC Solar. This prominent California solar company was at the center of a $912 million Ponzi scheme.
The Indictment
In an indictment issued last week, a federal grand jury charged Lauer, aged 59, with 23 counts. These charges encompass allegations of conspiracy to commit wire and bank fraud, as well as bank fraud and wire fraud, all of which profoundly impacted a financial institution, according to a statement released by federal prosecutors on Tuesday. As DC Solar’s outside counsel, Lauer was entrusted with providing legal and business advice, a role now under intense scrutiny.
Lauer’s Response
Ari Lauer, who maintains his law office in Walnut Creek as per state attorney records, has yet to issue an official response to these serious charges.
The DC Solar Ponzi Scheme Unveiled
The allegations against DC Solar are nothing short of staggering. From 2011 to 2018, the company was involved in transactions amounting to a whopping $2.5 billion. These transactions revolved around the sale of mobile solar generators, ostensibly designed to provide emergency power to cellphone towers and illuminate sports events, all while enticing investors with the promise of associated federal tax credits.
However, a shocking revelation came to light. Nearly half of the purported 17,000 generators simply did not exist. The Benicia, California-based company is accused of using fraudulent financial statements and lease contracts to cloak this extensive fraud from investors and authorities alike.
Concealing the Deception
Ari Lauer was allegedly part of a group of individuals who conspired to hide that DC Solar was not making the expected revenue from rentals to third parties. Their method of deception involved transferring investor funds from one account to another. Furthermore, according to the prosecutors, Lauer is said to have actively participated in the creation of documents designed to conceal these illicit transfers.
The Carpoff’s Guilty Plea
It’s worth noting that the husband-and-wife owners of DC Solar, Jeff and Paulette Carpoff, previously pleaded guilty to federal charges related to the Ponzi scheme in 2020. In the wake of their convictions, Jeff Carpoff was sentenced to 30 years in prison. He was ordered to pay more than $790 million in restitution, underscoring the gravity of the financial misconduct associated with the case. Paulette Carpoff, on the other hand, received an 11-year prison sentence.
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