$5M Fine For Fake Solar Companies That Defrauded NREL: Feds

DENVER, CO – Federal prosecutors obtained a judgment of more than $5 million against two solar companies and a company administrator who were charged with defrauding programs for the National Renewable Energy Lab in Golden.

The companies submitted fake applications to the federal government for solar panels installed by contractors on private homes and businesses, marking up reimbursement claims for extra fictional "costs" billed by a shell company. More than 41 inflated reimbursement requests, which were paid with taxpayer money by the federal program, were involved, a press release from the U.S. Attorney's Office in Denver said.

Midland, Texas-based company New World Renewable Energy Leasing, Inc. and an associated shell company Infinergy Solar and Wind, Inc. as well as company officer Murray Hambrick were charged in 2017 under the False Claims Act.

The government said the companies, under the management of Hambrick and his wife, fraudulently applied for reimbursement under the American Recovery and Reinvestment Act of 2009 for funds supposedly invested in solar projects.

Federal prosecutors alleged that, rather than submit to NREL its true cost in the projects, Infinergy engaged in a "sham sale of the projects to New World," which artificially inflated the purported costs of the projects. Representatives for company did not show up in court, so a judge entered a default judgment against them.

Hambrick fought the case in court, then filed for bankruptcy, the DOJ said. He finally agreed to a "non-dischargeable judgment of $225,500," which was approved by the Bankruptcy Court for the Western District of Texas on March 6, 2019, the DOJ said in a statement.

“This program had important goals: jump-starting the economy at a time of crisis, and helping companies that move our renewable energy industry forward," said U.S. Attorney Jason Dunn in a statement. "Taxpayers paid for that program. Companies and individuals who lie to take advantage of government programs like this one will face consequences.”

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