World’s largest renewable energy developer SunEdison has cut hundreds of jobs; faces class action lawsuits on behalf investors and “Boardroom Bloodletting”. And, SunEdison is presently under restraining order issued by the New York court:
“Judge Ramos issued the TRO a day after Latin America Power shareholders sought an emergency hearing on the grounds that SunEdison “could suddenly and rapidly become insolvent” or move to dissipate assets before the New York court could act on their bid to attach $150 million of assets, court papers say.
SunEdison stock SUNE value plummeted 71.4% within three months following their acquisition of Boston-based First Wind. Media reports First Wind’s former CEO Paul Gaynor has departed SunEdison as EVP Americas & EMEA Region that he sold to them for $2.4 billion.
Regulatory Capture, Revolving Doors and First Wind
First Wind Director is the former MA Executive Secretary of Energy and Environment under the Deval Patrick Administration and the Founding Chairman and BOD of MassCEC, Ian Bowles, who joined First Wind as Director after leaving office.
Massachusetts green-regulations Advisor to MA energy chief Bowles, by Governor Deval Patrick’s appointment, was Paul Gaynor CEO of First Wind. Gaynor also served as MA Co-chair of “The Climate Protection Advisory Committee” under the Global Warming Solutions Act. First Wind CEO was named co-chair of the Mass Department of Environmental Protection Advisory Committee “Low Carbon Energy Supply Subcommittee.” Gaynor assisted the energy chief in the creation of state rules that require citizens to purchase and subsidize renewable energy in Gaynor’s marketplace as a renewable energy developer. The MA energy market was restructured approximately seven times under Bowle’s leadership.
SunEdison’s “executive level job” went to Alicia Barton, Bowle’s successor as former CEO of Massachusetts Clean Energy Center (MassCEC). Bowles is the Founding Chairman and BOD of MassCEC, and former MA Executive Secretary of Energy and Environment. MassCEC’s mission is to collect ratepayer surcharges that fund private-sector renewable schemes, (such as those purveyed by Bowles’ green- policy Advisor, First Wind CEO). Bowles is a renewable energy entrepreneur, investor and the rule-maker.
As reported by GreenTech Media, SunEdison Executive Vice President Paul Gaynor has fallen victim to “SunEdison Boardroom Bloodletting”..
GreenTech Media Erci Westoff on January 26, 2016 reports Paul Gaynor has departed SunEdison.
‘Energy Jobs: SunEdison Boardroom Bloodletting Begins, Plus More CEO Moves’
According to UBS, Paul Gaynor (former First Wind CEO) has also departed, although this was not disclosed in the 8K filing. "Given Paul's former role as CEO of First Wind, we continue to perceive growing risk to execution on guided targets, particularly on wind backlog," reported UBS.
Mottley Fool on February 16, 2016:
SunEdison Inc Running Out of Survival Options
Bankruptcy could be around the corner if some court rulings don't go SunEdison Inc's way.
Hedge fund billionaire Leon Cooperman dropped two of Wall Street's horror show stocks
SunEdison's shares have collapsed more than 80% since July. Omega first initiated a position in the stock back in the fourth quarter of 2013.
The Wall Street Journal
‘Investors Win Restraining Order Against SunEdison’
“Order, related to Latin America Power lawsuit, temporarily restricts unusual moves with assets”
Glancy Prongay & Murray LLP (GPM) filed a class action lawsuit on behalf of investors that "alleges that SunEdison and certain corporate insiders made materially misleading misrepresentations and omissions regarding SunEdison's business practices and operations...":
"corporate insiders made materially misleading misrepresentations and omissions"
SunEdison Inc Stock Down on “Mounting Liquidity Fears”
SunEdison Inc. stock (NYSE:SUNE
) has been highly volatile over the past six months. It slid down from $31 in July, to as low as $2.36 last week. On Tuesday, the stock fell another 10%. Other solar losers on Tuesday include SolarCity Corp (NASDAQ:SCTY
) and Vivint Solar (NYSE:VSLR), with each losing 11.6% and 14.80%, respectively.
SunEdison Inc Stock Down on “Mounting Liquidity Fears” http://www
SunEdison SUNE purchased First Wind 1/15 for $2.4 billion making SunEdison "the world's largest renewable energy development company".
SUNE stock value plummeted 71.4% within three months following the First Wind transaction.
WHAT WAS THE VALUE OF SUNEDISON ASSET FIRST WIND?
HISTORY Of UPC FIRST WIND, Affiliate and Subsidiary IVPC:
(First Wind) UPC direct testimony, Italian Vento Power Corporation( IVPC) is an affiliate and subsidiary. UPC founded by Brian Caffyn changed its name to First Wind in 2008. UPC STEVE VAVRIK direct testimony of 2006, page 5, provides affiliate (IVPC). Italian Vento Power Corporation. This affiliate, Oreste Vigorito, with associate Vito Nicastri, IVPC, is the subject of Operation "Gone With the Wind", a 2009 wind fraud event. They are alleged associates of Matteo Messina Denaro Cosa Nostra "Boss of Bosses", still at large and listed by Forbe’s as THE FBI World's Ten Most Wanted.
Operation "Gone With the Wind" was a 2009 investigation by anti-Mafia police into wind energy fraud in order to obtain public subsidies that evolved to the largest-ever asset seizure by anti-Mafia police in Italy, by First Wind affiliates.
HAWAII FREE PRESS
'Hawaii Wind developer tied to Largest-ever asset seizure by anti-Mafia police'
Monday, March 28, 2011
by Andrew Walden
Paul Gaynor, CEO of First Wind stood comfortably
with Hawaii Governor Neil Abercrombie, Rep Mazie Hirono, and HECO CEO Dick Rosenblum at the grand opening
of the Kahuku Wind energy project on Oahu’s North Shore Thursday. As he should.
First Wind–formerly known as UPC Wind--got its start in wind energy by launching Italy’s IVPC--a company now subject to a record breaking asset seizure by Italian police. The Financial Times September 14, 2010 explains:
Italian anti-mafia police have made their largest seizure of assets as part of an investigation into windfarm contracts in Sicily. Officers confiscated property and accounts valued at €1.5bn belonging to a businessman suspected of having links with the mafia.
Roberto Maroni, interior minister, on Tuesday accused the businessman – identified by police as Vito Nicastri
and known as the island’s “lord of the winds” – of being close to a fugitive mafia boss, Matteo Messina Denaro.
General Antonio Mirone, of the anti-mafia police, said the seized assets included 43 companies – some with foreign participation and mostly in the solar and windpower sector – as well as about 100 plots of land, villas and warehouses, luxury cars and a catamaran. More than 60 bank accounts were frozen.
Until his arrest last November, Mr Nicastri, based in the inland hill town of Alcamo, was Sicily’s largest developer of windfarms, arranging purchases of land, financing and official permits. Some projects were sold through intermediaries to foreign renewable energy companies attracted to Italy by generous subsidy schemes….
Cut, continue reading:
By Christine Duhaime | July 12th, 2013
Europol report ties mafia to renewable energy
This week, Europol
released yet another report tying the financing, development and operation of renewable energy projects, particularly wind energy infrastructure projects, to organized crime in Europe.
The involvement of organized crime in wind energy and renewable energy generally, poses significant legal, reputational and financial risks. The latter arises from, among other things, the potential forfeiture of assets acquired in whole or in part from suspected proceeds of crime, whether directly or indirectly.
The latest Europol report follows on the heels of an earlier one, the “Serious & Organized Crime Threat Assessment 2013″, which similarly found that organized crime is involved in, and in some instances controls, renewable energy financings and project developments for the purposes of laundering proceeds of crime.
Lord of the wind
This despite the fact that the alleged mafia and kingpin of wind energy, the so-called “Lord of the Wind”, Vito Nicastri
, is still effectively under house arrest in Italy and €1.7 billion in corporate assets that he controlled were recently permanently forfeited to the state. Mr. Nicastri hasn’t been convicted of an offence in connection with the forfeited assets, and he doesn’t have to be for the state to seize assets that are suspected of being proceeds of crime.
The assets forfeited included shares in 40 companies, 100 properties, including wind farms and the assets thereon, 66 bank accounts, life insurance policies, seven exotic sports cars and luxury yachts.
mafia are also alleged to be involved in renewable energy to launder proceeds of crime. In Europe, the Camorra are reported to have large and profitable criminal operations in France, Spain, Germany and the Netherlands (in addition to Italy). In the U.S., they are one of 4 designated “transnational criminal organizations” (on the same scale as the Zetas in Mexico), having infiltrated the U.S. financial system to launder proceeds of crime from drug trafficking and other serious crimes.
In 2009, the Boston Herald reported that Italian Vento Power Corp. (“IVPC“) one of the wind energy companies forfeited to the Italian state that was associated with the alleged boss of the Cosa Nostra, Oreste Vigorito (who was allegedly associated with Mr. Nicastri), was formerly connected with a shareholder and director of two Boston-based wind energy companies.
Generous subsidies are attractive to organized crime
Organized crime is attracted to wind energy for three reasons: (a) generous government subsidies and feed-in tariffs; (b) corporate tax credits; and (c) the ease with which they can launder proceeds of crime as a result of the lack of knowledge of the mafia, money laundering and forfeiture risks on the part of financing and governments participants in the wind and renewable energy sectors.
In the current global market, organized crime is uniquely situated in that they have an abundance of cash that they need to invest (hence, launder) at a time when credit is hard to come by for corporations. The renewable energy sector provides the perfect money laundering vehicle to legitimize criminal operations because of the multi-layered corporate and financing structuring required, and the lack of money laundering awareness within the sector. Given that renewable energy is expected to grow by at least 20% by 2020, the problem is expected to get worse not better.
Other countries affected
The problem of organized crime infiltrating and controlling the wind energy sector, and generally, renewable energy, is not limited to Italy.
According to reports from ISA Intel, organized crime in Greece is actively engaged in laundering proceeds of crime through wind and other renewable energy projects.
And the Financial Intelligence Directorate for Bulgaria’s Agency for National Security reported a few days ago that according to its studies, renewable energy companies in Bulgaria act as a front for money laundering. In the Bulgarian cases, offshore companies (usually in tax havens) are used by organized crime to build and operate energy projects and finance related entities that bid on, and build energy infrastructure projects.
Know your customer procedures
Financial institutions and other participants should have sound know your customer (“KYC“) procedures in place. They help flush out money laundering and protect the reputation and integrity of the participants in a project by reducing the likelihood of any one of them becoming a vehicle for financial crime and suffering the consequential reputational damage.
For banks and other funding groups, KYC procedures constitute an essential part of sound risk management by providing the basis for identifying, limiting and controlling risk exposures in assets and liabilities, including assets under management.
The Wind Father illustration is borrowed from The Global Warming Policy Foundation.
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"...As president and CEO of UPC Wind Management, located in Newton, Mass., Gaynor was tapped to bring the success of the parent company, UPC Group, to North America. In Europe and North Africa, UPC affiliates—including Italian Vento Power Corporation
—have raised over $900 million in financing and installed some 900 utility-scale wind turbine generators (WTGs), with a total capacity of more than 635 megawatts. UPC subsidiary companies, positioned across the United States and in Toronto, are currently pursing some 2,000 megawatts in projects from Maine to Maui..." http://www.wpi.edu/News/Transformations/2005Summer/windpower.html
April 25, 2007, (UPC IS FIRST WIND):
Complaint Filed With the Department Of Justice Under the Sherman Antitrust Act By Concerned Citizens From The States of New York, Vermont, Maryland, and California (filed April 25, 2007)
A complaint against "UPC Wind Management LLC: "an American subsidiary of UPC Group", formerly known as Wind Management LLC, founded by Brian Caffyn for U.S. developments.", is filed with the U.S. Department Of Justice. The complaint filed under the Sherman Antitrust Act by 94 concerned citizens alleged a cartel was engaged in Market Allocation, Price Fixing, Big Rigging in Wind Farm Developments in New York and Vermont, as well as other states across the nation.
July 15, 2008, First Wind served with a civil subpoena by the New York State Attorney General seeking documents to substantiate First Wind’s alleged improper benefits to public officials. First Wind is under criminal investigation by NYS Attorney General Andrew Cuomo for allegations of improper dealings with public officials and anti-competitive practices.
July 15, 2008
The Press Republican
"We've had a number of complaints from counties all over the state, from Franklin all the way over to Erie," said John Milgrim, spokesman for Attorney General Andrew Cuomo.”
“Franklin County District Attorney Derek Champagne was among "DAs from eight counties, public officials and citizens" who bombarded Albany with complaints about Noble and Massachusetts-based First Wind, formerly known as UPC Wind, he said"
As reported on July 16, 2008 by Wall Street Journal:
"New York Attorney General Andrew Cuomo has opened a probe of two companies that develop and operate wind farms over allegations of improper dealings with public officials and anticompetitive behavior. Mr. Cuomo said his office has subpoenaed First Wind -- formerly UPC Wind -- and Noble Environmental Power LLC, which has filed with the Securities and Exchange ..."