DC Solar

The company was founded in 2008 in Concord, California, by Jeffrey Carpoff, an auto mechanic.{{Cite web |last=Weilenman |first=Donna Beth |date=February 6, 2019 |title=DC Solar files Chapter 11 bankruptcy, court papers show multi-million dollar debt |url=https://martinezgazette.com/dc-solar-files-chapter-11-bankruptcy-court-papers-show-multi-million-dollar-debt/ |url-status=live |archive-url=https://web.archive.org/web/20200328020452/https://martinezgazette.com/dc-solar-files-chapter-11-bankruptcy-court-papers-show-multi-million-dollar-debt/ |archive-date=March 28, 2020 |access-date=August 13, 2020 |website=Martinez News-Gazette}}{{Cite web |last1=Eckhouse |first1=Brian |last2=Chiglinsky |first2=Katherine |last3=Chediak |first3=Mark |date=June 4, 2019 |title=DC Solar scammers serve as cautionary tale for solar investors |url=https://www.renewableenergyworld.com/2019/06/04/dc-solar-scammers-serve-as-cautionary-tale-for-solar-investors/ |url-status=live |archive-url=https://web.archive.org/web/20200616113111/https://www.renewableenergyworld.com/2019/06/04/dc-solar-scammers-serve-as-cautionary-tale-for-solar-investors/ |archive-date=June 16, 2020 |access-date=August 13, 2020 |website=Renewable Energy World}} Berkshire Hathaway invested $340 million in the company.{{Cite web |last=Cao |first=Sissi |date=May 10, 2019 |title=Warren Buffett Was Scammed Out of $340 Million in a Ponzi Scheme |url=https://observer.com/2019/05/warren-buffett-berkshire-hathaway-scammed-ponzi-scheme-dc-solar/ |url-status=live |archive-url=https://web.archive.org/web/20200607105736/https://observer.com/2019/05/warren-buffett-berkshire-hathaway-scammed-ponzi-scheme-dc-solar/ |archive-date=June 7, 2020 |access-date=August 13, 2020 |website=The New York Observer}} The company supplied solar panels, named Solar Eclipse,{{cite web |last1=Sabar |first1=Ariel |title=The Billion-Dollar Ponzi Scheme That Hooked Warren Buffett and the U.S. Treasury |url=https://www.theatlantic.com/magazine/archive/2023/06/dc-solar-power-ponzi-scheme-scandal/673782/ |website=The Atlantic |access-date=May 9, 2023 |date=May 8, 2023}} to various higher education facilities (using a subsidiary, DC Solar Freedom, for education-related partnerships) such as California State University and Long Beach City College{{Cite web |date=April 21, 2016 |title=CSUN Partners with DC Solar Freedom to Bring Off-Grid Solar Power to Campus at No Cost |url=https://csunshinetoday.csun.edu/university-news/csun-partners-with-dc-solar-freedom-to-bring-off-grid-solar-power-to-campus-at-no-cost/ |url-status=live |archive-url=https://web.archive.org/web/20160422015649/http://csunshinetoday.csun.edu/university-news/csun-partners-with-dc-solar-freedom-to-bring-off-grid-solar-power-to-campus-at-no-cost/ |archive-date=April 22, 2016 |access-date=August 13, 2020 |website=CSUN Today |publisher=California State University}}{{Cite web |title=DC Solar Freedom Brings Off-Grid Solar Power to LBCC |url=https://www.lbcc.edu/article/dc-solar-freedom-brings-grid-solar-power-lbcc |url-status=live |archive-url=https://web.archive.org/web/20201006210138/https://www.lbcc.edu/article/dc-solar-freedom-brings-grid-solar-power-lbcc |archive-date=October 6, 2020 |access-date=October 6, 2020 |website=Long Beach City College|date=November 27, 2019 }}{{Cite web |last=Whitman |first=Elizabeth |date=February 27, 2019 |title=The Bizarre Link Between Phoenix and an Imploding California Solar Company |url=https://www.phoenixnewtimes.com/news/phoenix-city-renewable-trailers-fbi-fraud-bankruptcy-california-dc-solar-11221146 |url-status=live |archive-url=https://web.archive.org/web/20190228144646/https://www.phoenixnewtimes.com/news/phoenix-city-renewable-trailers-fbi-fraud-bankruptcy-california-dc-solar-11221146 |archive-date=February 28, 2019 |access-date=September 2, 2020 |website=Phoenix New Times}} and various NASCAR tracks;{{Cite web |last=Stern |first=Adam |date=April 16, 2018 |title=DC Solar expanding to more SMI, ISC tracks |url=https://www.sportsbusinessdaily.com/Journal/Issues/2018/04/16/Facilities/DCSolar.aspx |url-status=live |archive-url=https://web.archive.org/web/20201006210138/https://www.sportsbusinessdaily.com/Journal/Issues/2018/04/16/Facilities/DCSolar.aspx |archive-date=October 6, 2020 |access-date=August 13, 2020 |website=Sports Business Journal}}{{Cite web |date=June 10, 2019 |title=Solar operation accused in $800M fraud scheme lists Kansas Speedway as a creditor |url=https://www.bizjournals.com/kansascity/news/2019/06/10/solar-operation-accused-in-800m-fraud-scheme-lists.html |access-date=August 13, 2020 |website=Kansas City Business Journal |publisher=American City Business Journals}} it also sponsored Chip Ganassi Racing and several races in the NASCAR calendar in 2018.{{Cite magazine |last=JohnWallStreet |date=January 27, 2020 |title=NASCAR, Chip Ganassi Racing Duped In Billion Dollar Ponzi Scheme, Affiliation Unlikely to Leave Stain on Sport |url=https://www.si.com/johnwallstreet/sports-business/dc-solar-nascar |magazine=Sports Illustrated}} Prior to the 2018 FBI raid, the Internal Revenue Service had investigated the company in 2016 for financial irregularities regarding the company's dealings.

The company was raided by the FBI in December 2018 amidst allegations of Ponzi scheme associated with the company,{{Cite web |last=Barnard |first=Cornell |date=December 22, 2018 |title=FBI raids East Bay solar company Headquarters, CEO's home searched |url=https://abc7news.com/fbi-paulette-carpoff-jeff-dc-solar-company/4946763/ |access-date=August 13, 2020 |website=ABC7 San Francisco}} and the company later filed for Chapter 11 bankruptcy. According to the FBI and a later SEC investigation, it was alleged that Carpoff and his wife, Paulette, promised 17 investors between 2011 and 2018 federal solar tax credits, lease payments, and profits, but instead spent lavishly on properties, jets, jewelry, a semi-professional baseball team (Martinez Clippers), sponsoring trips and vacations and even work wardrobes for family members, and sponsorship deals for Chip Ganassi Racing and various NASCAR races. Meanwhile, the majority of the lease revenue was being paid with money from new investors, and as many as three-quarters of the mobile solar generators the company claimed to have built (17,000 units) never existed. GPS trackers purportedly attached to deployed units to verify their locations were buried instead to make it appear that the units were operational and where they were supposed to be.{{Cite web |last=Weilenman |first=Donna Beth |date=February 27, 2019 |title=FBI agent suggests DC Solar operations 'Ponzi Scheme' |url=https://martinezgazette.com/fbi-agent-suggests-dc-solar-operations-ponzi-scheme/ |url-status=live |archive-url=https://web.archive.org/web/20200328031807/https://martinezgazette.com/fbi-agent-suggests-dc-solar-operations-ponzi-scheme/ |archive-date=March 28, 2020 |access-date=August 13, 2020 |website=Martinez News-Gazette}}{{Cite web |date=January 24, 2020 |title=Owners of solar company that caused loss for Buffett plead guilty over Ponzi scheme |url=https://www.reuters.com/article/us-usa-crime-dc-solar-fraud/owners-of-solar-company-that-caused-loss-for-buffett-plead-guilty-over-ponzi-scheme-idUSKBN1ZN2N8 |url-status=live |archive-url=https://web.archive.org/web/20200218070220/https://www.reuters.com/article/us-usa-crime-dc-solar-fraud/owners-of-solar-company-that-caused-loss-for-buffett-plead-guilty-over-ponzi-scheme-idUSKBN1ZN2N8 |archive-date=February 18, 2020 |access-date=February 18, 2020 |website=Reuters}}

In 2019, federal authorities auctioned a car collection they amassed of more than 150 classic and contemporary cars, including Kyle Larson's car that won the 2018 Coca-Cola Firecracker 250 race.{{Cite web |last=Gastelu |first=Gary |date=October 17, 2019 |title=Massive car collection seized from owners of bankrupt DC Solar up for auction |url=https://www.foxnews.com/auto/car-collection-seized-bankrupt-d-c-solar-auction |url-status=live |archive-url=https://web.archive.org/web/20191207004710/https://www.foxnews.com/auto/car-collection-seized-bankrupt-d-c-solar-auction |archive-date=December 7, 2019 |access-date=December 7, 2019 |website=Fox News}}{{Cite web |last=McFadin |first=Daniel |date=September 25, 2019 |title=DC Solar bankruptcy auction includes Kyle Larson's Daytona-winning car |url=https://nascar.nbcsports.com/2019/09/25/dc-solar-bankruptcy-auction-includes-kyle-larsons-daytona-winning-car/ |url-status=live |archive-url=https://web.archive.org/web/20191219224831/https://nascar.nbcsports.com/2019/09/25/dc-solar-bankruptcy-auction-includes-kyle-larsons-daytona-winning-car/ |archive-date=December 19, 2019 |access-date=September 2, 2020 |website=NBC Sports}} The raid prompted Chip Ganassi Racing to shut down their NASCAR Xfinity Series team{{Cite web |last=Utter |first=Jim |date=January 5, 2019 |title=Chip Ganassi Racing shuts down Xfinity program for 2019 |url=https://www.motorsport.com/nascar-xs/news/chip-ganassi-racing-shuts-down-xfinity/4319510/ |access-date=August 13, 2020 |website=Motorsport.com}} and a lawsuit between International Speedway Corporation and SunTrust Bank regarding the fate of the generators.{{Cite web |last=Fernandez |first=Frank |date=September 8, 2019 |title=ISC, SunTrust sue each other over generators tied to company FBI accused of 'Ponzi Scheme' |url=https://www.news-journalonline.com/news/20190908/isc-suntrust-sue-each-other-over-generators-tied-to-company-fbi-accused-of-ponzi-scheme |url-status=live |archive-url=https://web.archive.org/web/20200211110811/https://www.news-journalonline.com/news/20190908/isc-suntrust-sue-each-other-over-generators-tied-to-company-fbi-accused-of-ponzi-scheme |archive-date=February 11, 2020 |access-date=September 2, 2020 |website=The Daytona Beach News-Journal}} The Carpoffs pled guilty to wire fraud and money laundering in January 2020, forfeiting $120 million in assets. Four other business partners pled guilty to crimes.{{Cite web |title=California couple pleads guilty to plotting $1B Ponzi scheme |url=https://apnews.com/11b4aff3d57317df55f68a13dfef6863 |url-status=live |archive-url=https://web.archive.org/web/20200127172051/https://apnews.com/11b4aff3d57317df55f68a13dfef6863 |archive-date=January 27, 2020 |access-date=January 27, 2020 |website=AP NEWS |date=January 24, 2020 |quote=Prosecutors alleged that the company engaged in $2.5 billion in investment transactions between 2011 and 2018, costing investors $1 billion. Among the investors was Warren Buffett’s Berkshire Hathaway Inc., which lost some $340 million.}}

On November 9, 2021, Jeffery Carpoff was sentenced to 30 years in prison after he pleaded guilty to charges of conspiracy to commit wire fraud and money laundering.{{cite news|url=https://www.justice.gov/usao-edca/pr/dc-solar-owner-sentenced-30-years-prison-billion-dollar-ponzi-scheme|title=DC Solar Owner Sentenced to 30 Years in Prison for Billion Dollar Ponzi Scheme|work=United States District Court for the Eastern District of California|publisher=United States Department of Justice|date=November 9, 2021|access-date=November 9, 2021}}{{Cite web|title= DC Solar Owner Sentenced to 30 Years in Prison for Billion Dollar Ponzi Scheme Biggest Criminal Fraud Scheme in the History of the Eastern District of California |date=November 9, 2021 |url=https://www.justice.gov/usao-edca/pr/dc-solar-owner-sentenced-30-years-prison-billion-dollar-ponzi-scheme}} In addition to Jeffery his wife Paulette Carpoff and five other defendants also pleaded guilty to similar charges in relation to the scheme.{{Cite web|date=2021-11-09|title=Feds: Billion-Dollar Bay Area Ponzi Scheme Funded Jet-Setting Lifestyle, Ownership Of Minor League Baseball Team|url=https://sanfrancisco.cbslocal.com/2021/11/09/feds-billion-dollar-bay-area-ponzi-scheme-funded-jet-setting-lifestyle-ownership-of-minor-league-baseball-team/|access-date=2021-11-10|language=en-US}}

File:Brennan Poole (27591683046).jpg's DC Solar-sponsored Chevrolet Camaro at Richmond Raceway in 2016, their initial outing in the sport.]]

DC Solar began their NASCAR sponsorship at the end of 2014, when they got into contact with then ARCA Racing Series driver Brennan Poole. After only a few meetings they decided on going to the NASCAR Xfinity Series operation of HScott Motorsports in the No. 42 car in a partnership with Chip Ganassi Racing, moving Poole up from ARCA after 4 seasons of struggling to find rides at Venturini Motorsports due to a lack of funding, and taking the spot vacated by Dylan Kwasniewski at the end of 2014 after Rockstar Energy didn't renew their partnership for the 2015 season. In 2016 they expanded upon their partnership adding Christopher Bell and Kyle Larson in select NASCAR Camping World Truck Series races. In 2017, the company once again switched to expanding upon their sponsorship efforts in the sport, this time specifically with Chip Ganassi Racing's team, sponsoring Poole as well as Larson in the Monster Energy NASCAR Cup Series.{{Cite web |last=DeGroot |first=Nick |date=November 10, 2018 |title=Ross Chastain to run full Xfinity schedule with Ganassi in 2019 |url=https://www.motorsport.com/nascar-xs/news/ross-chastain-ganassi-dc-solar-xfinity-2019/3210979/ |url-status=live |archive-url=https://web.archive.org/web/20201006210146/https://www.motorsport.com/nascar-xs/news/ross-chastain-ganassi-dc-solar-xfinity-2019/3210979/ |archive-date=October 6, 2020 |access-date=September 11, 2020 |website=Motorsport.com}}

In June of 2018, 6 months before the company's raid, Poole filed a lawsuit against the company, Chip Ganassi Racing, and agency Spire Sports + Entertainment for breach of contract, alleging that both conspired to take away DC Solar's sponsorship from his Xfinity Series' ride and move it to the No. 42 CGR Cup Series team (then driven by Larson) and that Spire's involvement representing both driver and team constituted a conflict of interest.{{cite web |url=http://www.thedrive.com/accelerator/21861/former-nascar-driver-brennan-poole-sues-chip-ganassi-racing-spire-sports |title=Brennan Poole sues Chip Ganassi Racing NASCAR team |first=Amanda |last=Vincent |website=The Drive |publisher=Time Inc. |date=June 29, 2018 |accessdate=December 5, 2018}}{{cite web |url=https://nascar.nbcsports.com/2018/06/28/brennan-poole-files-lawsuit-against-chip-ganassi-racing/ |title=Brennan Poole files lawsuit against Chip Ganassi Racing |publisher=NBC Sports |date=June 28, 2018 |accessdate=December 5, 2018}} Spire and Chip Ganassi Racing initially cited performance reasons (lack of race victories) as the reason for termination of Poole's sponsorship;{{cite web |url=http://www.thedrive.com/accelerator/21933/chip-ganassi-racing-responds-to-lawsuit-from-former-nascar-driver-brennan-poole |title=Chip Ganassi Racing Has Answer for Brennan Pooles Accusations |first=Amanda |last=Vincent |website=The Drive |publisher=Time Inc. |date=July 3, 2018 |accessdate=December 5, 2018}}{{cite magazine |url=https://autoweek.com/article/nascar/brennan-poole-sues-chip-ganassi-racing-spire-sports-agency-over-sponsorship |title=Brennan Poole sues Chip Ganassi Racing, Spire Sports Agency over sponsorship conspiracy |magazine=Autoweek |date=June 28, 2018 |accessdate=December 5, 2018}} The suit was later settled out of court immediately following the raid of the company.

They also sponsored Xfinity Series races in 2018 at Phoenix Raceway and Las Vegas Motor Speedway (both now since named United Rentals 200 and Alsco Uniforms 302), the NASCAR Truck Series race at Las Vegas in 2016 (last known as Bucked Up 200, which has since been discontinued; the race distance was advertised as a {{convert|350|km|mi|0|adj=on|abbr=off|sp=us}} race the year DC Solar sponsored the event), as well as the naming rights to the FanGrounds (an area where fans could visit the pit garages) at Richmond Raceway.{{cite web |last1=McFadin |first1=Daniel |title=DC Solar founders to plead guilty to charges related to $1 billion Ponzi scheme |url=https://nascar.nbcsports.com/2020/01/24/dc-solar-ponzi-scheme-nascar-chip-ganassi-racing/ |website=NBC Sports |access-date=2022-05-24 |date=2020-01-24}}

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Category:Pyramid and Ponzi schemes

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Category:Solar energy companies of the United States

Category:Energy companies established in 2008

Category:Renewable resource companies established in 2008

Category:NASCAR controversies

Category:American companies established in 2008

Category:American companies disestablished in 2018

Category:Renewable resource companies disestablished in 2018

Category:2008 establishments in California