A company awarded $126.2 million in stimulus taxpayer funds from the U. S. Department of Energy is under investigation for insider trading according to a federal subpoena obtained by CBS News. The company, San Francisco-based Ecotality, makes and installs chargers for electric cars. The company received a subpoena from the Securities and Exchange Commission in October of 2010. The president of Ecotality North America Don Karner was sent an additional subpoena in December of 2011, which specifically asks for any and all documentation surrounding the public announcement of the first Department of Energy grant to the company for $99.8 million on August 5, 2009. The government also wants all communication regarding the federal grant from at least four Ecotality employees and two board members including the company's CEO Jonathan Read. Karner was required to supply documents to the SEC by early January. As part of the $99 million grant, the company is supposed to install 14,000 electric car chargers in five states. To date the company says they have installed 6,400, less than half. Electric cars are not rolling off production lines at the expected rate and sales have not been as strong as hoped...more
Government planning at its best: All them electric car chargers but no electric cars.
Insider training: When you're done screwing the taxpayer then go get the investors.
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