SEC Charges Husband and Wife with Nearly $1 Billion Ponzi Scheme
Jeffrey and Paulette Carpoff were charged by the SEC and U.S. Attorney’s Office with orchestrating a $910 million Ponzi scheme through fake solar generator investments, using over $140 million of investor funds for a lavish lifestyle while fabricating documents, and have consented to permanent injunctions with monetary penalties pending.
Jeffrey and Paulette Carpoff were charged by the SEC with violating federal antifraud securities laws for running a $910 million Ponzi scheme through their companies, DC Solar Solutions Inc. and DC Solar Distribution Inc., promising investors tax credits and lease payments from non-existent mobile solar generators. The couple allegedly siphoned at least $140 million in investor funds to finance a lavish lifestyle, including 150 luxury and sports cars, dozens of properties, and a share in a private jet, while fabricating financial statements, lease agreements, and generator certifications to conceal the fraud. The SEC seeks injunctive relief, disgorgement, and civil penalties; the Carpoffs have consented to permanent injunctions, with monetary relief to be determined by the court, while parallel criminal charges have been filed by the U.S. Attorney’s Office for the Eastern District of California.
Jeffrey and Paulette Carpoff, a California-based couple, were charged by the SEC and the U.S. Attorney’s Office for the Eastern District of California with orchestrating a nearly $910 million Ponzi scheme through their solar energy companies, DC Solar Solutions Inc. and DC Solar Distribution Inc., between 2011 and 2018. They lured 17 investors by offering securities tied to tax credits and lease profits from mobile solar generators that were largely never manufactured, with most payments to investors funded by new investor capital rather than actual operations. To maintain the illusion, the Carpoffs fabricated financial statements, lease arrangements, and generator certifications, deceiving investors into believing the ventures were legitimate. At least $140 million of the stolen funds were used to finance an extravagant lifestyle, including 150 luxury and sports cars, multiple properties, and a share in a private jet service. The SEC filed civil charges for violating antifraud provisions of federal securities laws, seeking injunctive relief, disgorgement, and civil penalties, to which the Carpoffs consented to permanent injunctions, with monetary remedies to be decided later. In a parallel criminal case, the U.S. Attorney’s Office also brought fraud charges against them. The SEC’s investigation, supported by the FBI and IRS, remains ongoing, and three other defendants had previously been charged in connection with the scheme.
Extracted insights
- $910.00M $910 million $100M–$1B
- $140.00M $140 million $100M–$1B
- company dc solar solutions inc. and dc solar distribution inc.
- agency Securities and Exchange Commission
- agency u.s. attorney's office for the eastern district of california
- SEC charged Jeffrey and Paulette Carpoff with orchestrating a nearly billion-dollar Ponzi scheme
- Jeffrey and Paulette Carpoff raised $910 million from 17 investors between 2011 and 2018
- Jeffrey and Paulette Carpoff operated DC Solar Solutions Inc. and DC Solar Distribution Inc.
- Jeffrey and Paulette Carpoff siphoned off at least $140 million of investor funds for lavish lifestyle
- SEC filed complaint in federal court in Sacramento
- SEC seeks injunctive relief, disgorgement, and civil penalties
- U.S. Attorney's Office for the Eastern District of California announced criminal charges against Jeffrey and Paulette Carpoff
- Carpoffs promised investors tax credits, lease payments, and profits from mobile solar generators
- Carpoffs arranged for investors to receive false documents including financial statements and lease arrangements
- Carpoffs acquired 150 luxury and sports cars, dozens of properties, and share in private jet service
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. "While the Carpoffs' pitch to investors seemed new and innovative, their alleged fraud was old and simple," said Daniel Michael, Chief of the Enforcement Division's Complex Financial Instruments Unit. "This case is a reminder that fraudsters often try to lure investors by associating themselves with trendy technologies." The SEC's complaint, filed in federal court in Sacramento, charges the Carpoffs with violating the antifraud provisions of the federal securities laws 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, 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.
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. "While the Carpoffs' pitch to investors seemed new and innovative, their alleged fraud was old and simple," said Daniel Michael, Chief of the Enforcement Division's Complex Financial Instruments Unit. "This case is a reminder that fraudsters often try to lure investors by associating themselves with trendy technologies." The SEC's complaint, filed in federal court in Sacramento, charges the Carpoffs with violating the antifraud provisions of the federal securities laws 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, 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.