Bankrupt Abound Solar Under Investigation
A bankrupt northern Colorado solar panel manufacturer is facing further scrutiny. The Weld County district attorney’s office says it is investigating Abound Solar to see if the company intentionally misled consumers.
District Attorney Ken Buck says the investigation was prompted by accusations the company knew its products were defective, but kept that information from customers and investors.
According to a statement by Ken Buck [.pdf]:
- Investigators are looking into possible instances of securities fraud based on allegations that officials at Abound Solar knew products the company was selling were defective, and then asked investors to invest in the company without telling them about the defective products.
- A second allegation being investigated centers on a bridge loan received by Abound Solar which was used to keep the company afloat until it received federally guaranteed loans. That investigation centers on whether lending institutions were misled when Abound Solar applied for the bridge loan.
- A third allegation being investigated centers on possible consumer fraud, and whether officials at Abound Solar knowingly sold defective products to consumers.
As the Coloradoan reports, no criminal charges have been filed against the people who ran the company.
The Loveland-based company filed for bankruptcy protection this summer, laying off 125 workers and seeing its equipment and other assets auctioned off.
Like Solyndra, another high-profile failed solar company, Abound Solar had been given a federal loan guarantee for $400 million. It had only received $68 million of that before its credit line was frozen.