Alternative Energy Scams
Many investors have become attracted to “green” investments. While there are legitimate ones out there, some of these investments are fraudulent.
Just last year, the Securities and Exchange Commission (SEC) accused San Diego-based Nova Gen Corp. of making false statements and selling unregistered stock. The company, which claimed to possess technology that was capable of converting coal into virtually emissions-free biodiesel fuel, allegedly projected highly unrealistic revenue. According to the SEC’s complaint, this revenue was based on building power plants that the company didn’t have permits and funding for. The company denied these allegations in court filings.
Even though alternative energy is a popular new investment category, it can be challenging trying to differentiate between the legitimate investments and the scams. If you are considering investing in alternative energy, you may be better off looking into a mutual fund or other similar investment that would allocate only a small percentage to this area.
Our investment fraud attorneys are licensed in Ohio and California and we represent clients nationwide with securities arbitration and litigation claims.