FBI Reportedly Investigating Accounting Fraud At Solyndra
The reasoning behind those FBI search warrants of Solyndra offices and executive’s homes is becoming clear:
The FBI is investigating Solyndra LLC for possible accounting fraud and the accuracy of financial representations made to the government, according to an agency official.
The FBI is examining possible misrepresentations in financial statements, according to the FBI official, who requested anonymity because the investigation is continuing.
Solyndra, which made cylindrical-shaped solar panels, filed for bankruptcy protection on Sept. 6 and fired about 1,100 workers with little notice, about two years after winning a $535 million U.S. loan guarantee from the Energy Department.
The company’s offices in Fremont, California, were raided by Federal Bureau of Investigation agents on Sept. 8. The Justice Department hasn’t said why Solyndra is being probed.
“The company is not aware of any wrongdoing by Solyndra officers, directors or employees” related to the Energy Department loan guarantees or other actions and “is cooperating fully” with the U.S. Attorney in San Francisco, according to a Sept. 20 statement from Solyndra. David Miller, a company spokesman, didn’t immediately return a phone call and an e-mail seeking comment today.
If Solyndra did misrepresent its financial condition when applying for the Department of Energy loans, or during the course of the restructuring I talked about earlier this week, then I suspect this story will become even more of a political football than it already appears to be.
So they mis-represented themselves and the administration is seeking legal recourse.
I’m sure someone will try to make hay from it…but I don’t see why.
Halliburton defrauded the US of more than Solyndra.
You know, the great irony in all this might be that Solyndra’s technology is ground-breaking:
If the technology is as viable and effective as advertised, let’s hope someone picks up the pieces.
@Hey Norm: I think you have a point. To the extent DOE was criminally defrauded, DOE cannot be blamed.
But it looks like there were too many discrete instances where DOE should have known better, so I doubt total exoneration here.
“To the extent DOE was criminally defrauded, DOE cannot be blamed.”
Uh, er, the numbers I’ve seen show Solyndra losing profit (not just cash, mind you) of $115MM to $250MM per annum in prior years. And with a cost and pricing structure that was, shall we say, “not encouraging.” (snicker)
Perhaps the numbers were even worse because of fraud. But if you are in my business, the business of investing in such ventures, you would, having seen the public numbers conclude – as in the line in an old Monty Python movie – “run away!! run away……..!!”
These politically motivated exculpatory contortions are embarassingly bad.
Yes….as proven repeatedly by Halliburton and KBR.
Solyndra is one small piece of the green investment. Was it stupid? Yes. But it would be ridiculous to throw the baby out with the bathwater.
What a non-story. Trillions unfunded illegal wars? Nothing to see here. $500 million to create jobs in the U.S., and surely the anti-christ is at work.
http://static01.mediaite.com/med/wp-content/uploads/2011/09/SolyndraVMilitary.gif
@James in LA: Curse you, liberal media!