"DC Solar reeled in investors by pointing out that there were generous federal tax credits to be had due to the green energy the MSGs offered. According to the DOJ, investors would buy the MSGs without ever taking possession of them, paying a percentage of the sale price and financing the balance with DC Solar. Then the investors leased the MSGs back to the company, which in turn purported to lease them to third parties."
"Enter the Ponzi scheme. According to the DOJ, when the third-party leases generated little income, the company paid early investors with funds contributed by later investors. Generators were sold that didn't even exist -- at least half DC Solar claimed to have manufactured -- making it look like MSGs existed in locations that they did not."
"Attorney Ari Lauer, 61, got 11 years and five months in prison for 'giving legitimacy' as outside counsel to the company DC Solar, which defrauded investors. Lauer pleaded guilty in October 2025 to one count of conspiracy to commit wire and bank fraud, 12 counts of bank fraud, and 10 counts of wire fraud affecting a financial institution."
DC Solar orchestrated the largest criminal fraud scheme in the Eastern District of California's history by selling mobile solar generators (MSGs) mounted on trailers to investors who never took possession. The company claimed MSGs provided emergency power to cellphone towers and qualified for federal tax credits. Investors financed purchases through DC Solar and leased units back to the company, which purportedly leased them to third parties. When third-party leases generated minimal income, DC Solar operated as a Ponzi scheme, paying early investors with funds from later investors. The company fabricated approximately half its claimed inventory, creating false financial statements and lease contracts. Attorney Ari Lauer provided outside counsel legitimacy to the scheme and received 11 years and five months in prison.
Read at SFGATE
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