2020-01-24 sec-litreleases litigation_release 66 KB 2,640 chars

SEC v. Jeffrey P. Carpoff; and Paulette Carpoff, No. LR-24724, Eastern District of California (Jan. 24, 2020) — Press Release

raw: Jeffrey P. Carpoff and Paulette Carpoff

Jeffrey P. Carpoff and Paulette Carpoff, No. 2:20-cv-00180-JAM (Jan. 24, 2020)

Caption
Securities and Exchange Commission v. Jeffrey P. Carpoff and Paulette Carpoff
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summary

Jeffrey and Paulette Carpoff, a California-based couple, are accused of orchestrating a nearly $1 billion Ponzi scheme involving alternative energy tax credits

paragraph

Jeffrey and Paulette Carpoff, a California-based couple, are accused of orchestrating a nearly $1 billion Ponzi scheme involving alternative energy tax credits. The alleged scheme, which ran from 2011 to 2018, involved raising $910 million from 17 investors through their solar generator companies, with the Carpoffs siphoning off at least $140 million to fund their lavish lifestyle. The couple is charged with violating antifraud provisions of the Securities Act and Exchange Act, and has consented to permanent injunctions, with monetary relief to be determined by the court.

narrative

Jeffrey and Paulette Carpoff, a California-based couple, are accused of orchestrating a nearly $1 billion Ponzi scheme involving alternative energy tax credits. The alleged scheme, which ran from 2011 to 2018, involved raising $910 million from 17 investors through their solar generator companies, with the Carpoffs siphoning off at least $140 million to fund their lavish lifestyle. The couple is charged with violating antifraud provisions of the Securities Act and Exchange Act, and has consented to permanent injunctions, with monetary relief to be determined by the court. The SEC charged Jeffrey and Paulette Carpoff with orchestrating a nearly $1 billion Ponzi scheme involving alternative energy tax credits, having raised approximately $910 million from 17 investors between 2011 and 2018 through their solar generator companies. The complaint alleges the couple violated antifraud provisions of the Securities Act and Exchange Act by promising returns from non-existent generators and using new investor funds to pay earlier investors, while siphoning at least $140 million to fund a lavish lifestyle. The SEC seeks injunctive relief, disgorgement, and civil penalties, and the defendants have consented to permanent injunctions with monetary relief to be determined later. This civil enforcement action runs parallel to criminal charges filed by the U.S. Attorney's Office for the Eastern District of California against the same individuals. The SEC charged California-based husband and wife Jeffrey and Paulette Carpoff with orchestrating a $910 million Ponzi scheme through their solar energy companies, DC Solar Solutions Inc. and DC Solar Distribution Inc., from 2011 to 2018. They misled 17 investors by promising tax credits and lease payments from mobile solar generators, most of which were never built, while using new investor funds to pay fake returns. The Carpoffs diverted at least $140 million for personal luxuries, including 150 cars, multiple properties, and a private jet stake. They were charged with securities fraud under Sections 17(a) and 10(b) and Rule 10b-5, and have consented to permanent injunctions, with monetary penalties to be determined; parallel criminal charges were also filed by the U.S. Attorney’s Office. The SEC’s investigation, aided by the FBI and IRS, remains ongoing.

Enriched metadata

Scheme
ponzi (100%)
Court
Eastern District of California
Case No.
2:20-cv-00180-JAM
Victim loss
$910,000,000
Entity
Jeffrey P. Carpoff and Paulette Carpoff
Classified ponzi(confidence 100%). EDGAR detection: forms Form D· recall 35% / precision 15%. detection rule →
Statutes
Section 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionJeffrey P. CarpoffPaulette Carpoff
Keywords
paulette carpoffcarpoffjeffrey carpoffcarpoff paulettesecurities exchangejeffreypaulettesecuritiessecschemesec'sinvestorssolarcarpoffsponzi scheme

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 3
  • $1.00B $1 Billion ≥$1B
  • $910.00M $910 million $100M–$1B
  • $140.00M $140 million $100M–$1B
Entities 5
  • scheme_term a nearly billion-dollar ponzi scheme involving alternative energy tax credits
  • scheme_term nearly billion-dollar ponzi scheme
  • scheme_term ponzi scheme
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
Triples 24
  • Securities and Exchange Commission charged Jeffrey P. Carpoff and Paulette Carpoff
  • Jeffrey and Paulette Carpoff orchestrating nearly billion-dollar Ponzi scheme
  • Jeffrey and Paulette Carpoff raised approximately $910 million
  • Jeffrey and Paulette Carpoff raised from 17 investors
  • Securities and Exchange Commission v. Jeffrey P. Carpoff and Paulette Carpoff filed January 24, 2020
  • Jeffrey P. Carpoff and Paulette Carpoff orchestrated a nearly billion-dollar Ponzi scheme involving alternative energy tax credits
  • Jeffrey and Paulette Carpoff raised approximately $910 million from 17 investors between 2011 and 2018
  • Securities and Exchange Commission charged Jeffrey P. Carpoff and Paulette Carpoff with a nearly billion-dollar Ponzi scheme
  • Jeffrey P. Carpoff orchestrated Ponzi scheme
  • Paulette Carpoff orchestrated Ponzi scheme
  • Jeffrey and Paulette Carpoff raised $910 million from 17 investors
  • Jeffrey and Paulette Carpoff charged with Ponzi scheme
  • SEC charged Jeffrey P. Carpoff and Paulette Carpoff
  • SEC filed lawsuit Securities and Exchange Commission v. Jeffrey P. Carpoff and Paulette Carpoff
  • Jeffrey and Paulette Carpoff involved in alternative energy tax credits
  • Jeffrey and Paulette Carpoff operated between 2011 and 2018
  • Jeffrey P. Carpoff and Paulette Carpoff orchestrated a nearly billion-dollar Ponzi scheme involving alternative energy tax credits
  • Jeffrey and Paulette Carpoff raised approximately $910 million from 17 investors between 2011 and 2018
  • Jeffrey P. Carpoff charged orchestrating a nearly billion-dollar Ponzi scheme
  • Paulette Carpoff charged orchestrating a nearly billion-dollar Ponzi scheme
  • Jeffrey and Paulette Carpoff raised approximately $910 million from 17 investors
  • Jeffrey and Paulette Carpoff involved alternative energy tax credits
  • Securities and Exchange Commission charged Jeffrey P. Carpoff and Paulette Carpoff
  • Securities and Exchange Commission filed complaint, No 2:20-cv-00180-JAM-AC
PDF (from attached: complaint)
Plaintiff, the United States Securities and Exchange Co · Source
Text layers
Extracted body text (2,640c) 
SEC Charges Husband and Wife with Nearly $1 Billion Ponzi Scheme Litigation Release No. 24724 / January 24, 2020 Securities and Exchange Commission v. Jeffrey P. Carpoff and Paulette Carpoff, No 2:20-cv-00180-JAM-AC (E.D.Ca. filed January 24, 2020) The Securities and Exchange Commission today charged a California-based couple with orchestrating a nearly billion-dollar Ponzi scheme involving alternative energy tax credits. According to the SEC's complaint, Jeffrey and Paulette Carpoff raised approximately $910 million from 17 investors between 2011 and 2018 by offering securities in the form of investment contracts through their two solar generator companies, DC Solar Solutions Inc. and DC Solar Distribution Inc. The Carpoffs allegedly promised investors tax credits, lease payments, and profits from the operation of mobile solar generators. In reality, the complaint alleges, most of the generators were never manufactured, and the vast majority of the purported lease revenue paid to investors in fact came from new investor funds. As part of the scheme, the Carpoffs arranged for investors to receive false documents, including financial statements, lease arrangements, and generator certifications. Throughout the scheme, the Carpoffs allegedly siphoned off investor funds and used at least $140 million of investor money to fund their lavish lifestyle, which included 150 luxury and sports cars, dozens of properties, and a share in a private jet service. The SEC's complaint, filed in federal court in Sacramento, charges the Carpoffs with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, as well as Rule 10b-5 thereunder, and seeks injunctive relief, disgorgement, and civil penalties. The defendants have consented to permanent injunctions, with monetary relief to be determined by the court at a later date. The SEC previously charged three other defendants in this matter. In a parallel criminal case, the U.S. Attorney's Office for the Eastern District of California today announced criminal charges against Jeffrey and Paulette Carpoff. The SEC's continuing investigation is being conducted by Sarra Cho and Christopher Nee and supervised by Andrew Sporkin and Daniel Michael, all of the SEC's Complex Financial Instruments Unit, with the assistance of Kam Lee. The litigation is being led by Dean Conway and supervised by Thomas Bednar. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of California, the Federal Bureau of Investigation, and the Internal Revenue Service. SEC Complaint
OCR text (2,640c · html-text · 99% conf) 
SEC Charges Husband and Wife with Nearly $1 Billion Ponzi Scheme Litigation Release No. 24724 / January 24, 2020 Securities and Exchange Commission v. Jeffrey P. Carpoff and Paulette Carpoff, No 2:20-cv-00180-JAM-AC (E.D.Ca. filed January 24, 2020) The Securities and Exchange Commission today charged a California-based couple with orchestrating a nearly billion-dollar Ponzi scheme involving alternative energy tax credits. According to the SEC's complaint, Jeffrey and Paulette Carpoff raised approximately $910 million from 17 investors between 2011 and 2018 by offering securities in the form of investment contracts through their two solar generator companies, DC Solar Solutions Inc. and DC Solar Distribution Inc. The Carpoffs allegedly promised investors tax credits, lease payments, and profits from the operation of mobile solar generators. In reality, the complaint alleges, most of the generators were never manufactured, and the vast majority of the purported lease revenue paid to investors in fact came from new investor funds. As part of the scheme, the Carpoffs arranged for investors to receive false documents, including financial statements, lease arrangements, and generator certifications. Throughout the scheme, the Carpoffs allegedly siphoned off investor funds and used at least $140 million of investor money to fund their lavish lifestyle, which included 150 luxury and sports cars, dozens of properties, and a share in a private jet service. The SEC's complaint, filed in federal court in Sacramento, charges the Carpoffs with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, as well as Rule 10b-5 thereunder, and seeks injunctive relief, disgorgement, and civil penalties. The defendants have consented to permanent injunctions, with monetary relief to be determined by the court at a later date. The SEC previously charged three other defendants in this matter. In a parallel criminal case, the U.S. Attorney's Office for the Eastern District of California today announced criminal charges against Jeffrey and Paulette Carpoff. The SEC's continuing investigation is being conducted by Sarra Cho and Christopher Nee and supervised by Andrew Sporkin and Daniel Michael, all of the SEC's Complex Financial Instruments Unit, with the assistance of Kam Lee. The litigation is being led by Dean Conway and supervised by Thomas Bednar. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of California, the Federal Bureau of Investigation, and the Internal Revenue Service. SEC Complaint

Related documents (1)