The founder and CEO of 808 Renewable Energy Corp. has been charged with orchestrating a scheme to steal millions of dollars from investors to support his lifestyle and pay commissions to sales agents who allegedly helped him perpetrate the fraud.

Between 2009 through 2014, 808 Renewable raised more than $30 million from more than 500 investors nationwide through securities offerings, representing that the proceeds would go toward acquiring new equipment and expanding the business.

But according to the U.S. Securities and Exchange Commission, 808 Renewable CEO Patrick Carter misappropriated about half of that money, sometimes taking a portion for himself of the commission fees paid to sales agents.

Also named as defendants in an SEC civil complaint are Renewable Energy chief operating officer Peter Kirkbride, sales agents Martin Kinchloe and Thomas Flowers, and 808 Investments LLC, a company controlled by Carter.

“We allege that Patrick Carter orchestrated a fraudulent scheme using 808 Renewable Energy Corporation to raise millions,” Michele Wein Layne, director of the SEC’s Los Angeles office, said in a news release. “While telling investors their funds would be used for the benefit of the company, Carter and his associates looted 808 Renewable.”

Carter, who has previously been sanctioned by Texas and California securities regulators, found 808 Renewable in May 2009 to manage renewable energy projects for public entities and industrial firms. According to the SEC, it has never been profitable and by 2015 had only four operations systems installed at customer sites.

Five different types of stock were sold through private placements, with most of the money ($14 million) coming from sales of Carter’s founder shares. In promoting the offerings, Carter and his sales agents allegedly misrepresented not only how the investor funds would be used, but that Renewable 808 was generating positive cash flow that would be used to pay dividends to investors.

The SEC said the company was “cash-strapped” and used a “Ponzi-like” structure to pay dividends to existing investors from new investor funds.

Flowers has agreed to pay more than $1.4 million to settle the charges against him.

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15 responses to “808 Renewable Energy CEO Charged With Fraud”

  1. Unfortunately, my husband and I were some of the people who were duped in this scam. I am curious if you know of any kind of lawsuit that we could join in order to recuperate some of our losses?

  2. I was duped also! Only 10K but when you don’t have a lot, that’s alot to loose! I would also like to know if there is any lawsuit pending or happening?

    • Did you receive any shares from Triad Pro Innovators . The letter said they bought part of 808 renewable, no one answer when I called

  3. What options do we have? They have over $70k of my money and all I have are a bunch of worthless pink sheet stock certificates that no one will accept.

  4. I am 84 years old and still fell for these crooks. The 3 top men must go to jale that they can not do this any more. I invested $ 12,500 for 10,000 shares. how can we get together to get our money back?

  5. I gave a copy of all the marketing brochures, “quarterly” reports from 808 and paperwork associated with my investments to the SEC, Los Angeles. The contacts there are John W. Berry and Yolanda Ochoa.
    444 South Flower Street, Suite 900
    Los Angeles, CA 90071
    Phone: 323-965-3998
    E-mail: [email protected]

  6. Last I heard, there is a hearing scheduled in March 2018 to set up a disbursement fund. I think we need to keep checking the SEC website for when that is available. There is hope!

  7. Do you mean March 2019? What is the web site address of the SEC to check on this? Also, maybe we all need to be listed on the civil lawsuit?

  8. I had put almost all of my retirement funds in this investment. I have heard it could be written off against regular income since it was a Ponzi scheme. Does anyone have info on this?

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