Thursday, November 15, 2012

IRS and Treasury Investigate Obama's SolarCity

News that SolarCity, another recipient of millions in government largess from the Obama Administration, would be issuing an IPO forced the disclosure that the IRS and the Treasury Department were now investigating the company, and others, for potential abuse of taxpayer funds. The company, which received a subpoena in July from the Office of the Inspector General of the U.S. Department of Treasury to determine whether the company was part of a scam, inaccurately stated the fair-market value of their PV systems when applying for funds under the Treasury's Section 1603 cash-grant program. Rumors of "misrepresentation" on 1603 applications have swirled since Solar Energy Industries Association President and CEO Rhone Resch alluded to such behavior -- and other ethically questionable practices cropping up in the solar sector -- at this year's Solar Power International conference. "The Department of Justice could decide to bring a civil action to recover amounts it believes were improperly paid to us," SolarCity writes in its SEC filing. "If it were successful in asserting this action, we could then be required to pay damages and penalties for any funds received based on such misrepresentations." The Obama Administration awarded the company a $275 million loan guarantee. In addition, it has been awarded millions in contracts to supply solar panels to military housing across the country. Like Solyndra, the owners of SolarCity are donors to the Obama campaign and the Democrat National Committee...more

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