You may think that all the green energy initiatives out there are directed at the greater good in this world— but believe it or not, some of them are just as downright corrupt as Big Oil.
Because for every environmental do-gooder, there’s a dirty player who sees clean energy as another opportunity to get filthy rich.
Everyday, I’m activity tracking what the big institutional investors are trading in the dark pools— and with the way elections have been going, a lot of them have been piling into solar and hydrogen.
Just yesterday, I took an average 100% gain on 3 legs of my Sunpower (SPWR) position and a 150% gain on a leg of my Plug Power (PLUG) position— thanks to activity I spotted in the dark pools.
Today, I want to share a story about some of the most recent green energy corruption I’ve learned of.
A business owner defrauded the government out of tens of millions of dollars— only to see his company go up in smoke mere days before being handed a 7-year prison sentence.
This hippie is up on the chopping block and learning a powerful lesson. It has everything to do with his supposed green biofuel.
Green Energy Hippie Proved More Corrupt Than Big Oil
David Dunham Jr. was a man with a plan, and he was going to use his company Smarter Fuel to make his dreams come true.
His business plan would make him a star in the renewable energy industry.
Dunham was a biofuel advocate who used his passion to start his own company. His claim to fame was his at-home project. He rigged his Volkswagen to run on only cooking oil in 2004.
He teamed up with Ralph Tommaso, the proud owner of Environmental Energy Recycling Corp. They shared a similar passion for cooking oil.
Tommaso had utilized used cooking oil from restaurants /café kitchens and morphed it into biodiesel— powering cars and heating buildings with his invention.
From 2010 to 2015 Dunham worked with a whole slew of agencies, applying for and receiving those glorious renewable energy credits for his business Smarter Fuels.
He applied for EPA credit after credit for producing his magical biofuel. He received them all, even going on to sell these credits.
He also had no issue this tapping other federal agencies for these perks.
He received tens of millions of dollars from both Uncle Sam and the USDA for his biofuels production. He reeling in a total of almost $50 million in revenue for Smarter Fuel.
But Smarter Fuel wasn’t the only company that was gobbling up government perks.
Dunham was also working the business he owned with Tomasso— as if he had back rent due.
It seemed like these two had discovered something we all have been wishing for and Big Oil has nightmares about.
…. But it turns out Big Oil will remain on the fuel throne. Smarter Fuel and Greenworks Holding were producing nothing but lies and BS.
It can’t even be confirmed if Smarter Fuel EVER produced its specialty biofuels.
Dunham’s Oil Scheme Goes Up in Smoke
During Dunham’s 4-week trial, his team tried an odd tactic.
They claimed the Smarter Fuel founder was simply in over his head and confused— that he simply didn’t know he was defrauding multiple government agencies…
But it seems that the only thing Dunham was confused about was the truth. Because he had no issues with not telling it to pull in tens of millions of dollars by defrauding government agencies.
The evidence would reveal that he put in a lot of effort to cover up his crimes. He even doctored his accounting records 24 hours before the IRS audited his company in 2010.
But the IRS wasn’t the only federal agency receiving this shady treatment.
In 2012, the USDA auditors received a work of fiction from Dunham’s in place of legit company records.
But the truth spoke louder than Dunham’s “confusion.”
….. That and surely the fact that his partner in crime had already thrown himself at the mercy of the courts, pleading guilty in 2019.
Dunham received a one-two punch with his sentencing.
He has been ordered to pay over $10 million in restitution. Making things right with his former customers AND several federal agencies. To top it off, he received a 7-year prison sentence for scamming them.
The U.S. Attorney revealed just how much respect they had for Dunham, calling him “a thief, dressed up in ‘green energy’ clothing.”
Weighed in on his scheme some more, the attorney said, “He thought he could con not just one, but several federal agencies. Eventually, his lies caught up to him and now his reward is a long stint in federal prison.”
Think this bad?
3 days before Dunham received his sentence Smarter Fuel burned down.
An oil fire muted the morning sky, taking 16 agencies around 4 hours to finally extinguish.
The Pennsylvania State Police fire marshal is now looking into how the fire started.
And while it is routine for any large-scale fire to be investigated let’s all acknowledge the convenient timing……
Follow My Green Energy Trades in Dark Pool Profits
Speaking of convenient timing, green energy stocks are popping off over the past few days.
I’ll be tracking how the dirty institutional players are trading them in the dark pools— hopefully picking up some more triple digit wins like my successful moves on SPWR and PLUG.