Ronald J. Roach, and Joseph W. Bayliss pleaded guilty to being involved in a major fraud scheme involving a DC Solar, solar energy company in Benicia, which announced the $1 billion people, US Attorney McGregor W. Scott. These losses arose from investment transactions in solar energy hardware valued at around $2.5 billion.
According to court documents, between 2011 and 2018, DC Solar made solar energy mobile generator units that went on trailers (MSG). The company addressed the flexibility and environmental sustainability of the MSGs and claimed that they were used by mobile phone companies to provide emergency power for cell towers in the event of power failure. It was also claimed that they were used to power lights at sporting and other events.
Ron Roach – DC Solar Investigation
The company was promoted to investors by claiming that federal tax benefits were very favorable related to investments in alternative energy. The company structured the transactions to maximize the tax benefits for the investors. MSGs were purchased by investors without ever taking possession.
They would pay a percentage of the sales price and would pay the balance to the company. The investors would then lease the MSGs back to the company, which leased them to third parties. Part of the lease income would be used to pay investors’ debts to the company and investors. However, third-party leases generated very little income and the company paid early investors with funds that were later submitted by investors.
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According to court documents, Ronald J. Roach, 53, of Walnut Creek, a certified public accountant, provided accounting and tax services to the solar energy company. To prepare investor trick, Roach prepared years of financial statements that falsely attributed investments to buy MSGs as income earned from those MSGs that let. Roach and his colleagues used these fraudulent financial statements to hide from investors on the company’s later use of investor payments to pay financial obligations made by the company to earlier investors – in a classic scheme, such as Ponzi. Roach also pleaded guilty to securities breaches relating to the same investment fraud scheme.
Joseph W. Bayliss, 44, from Martinez, a general contractor and an electrician who provided services to the company solar energy, pleaded guilty to Roach and others in relation to the same scheme. Bayliss acknowledged that thousands of false reports had been prepared which confirmed that thousands of MSG were sold to investors and operational specifications. Bayliss admitted that, for at least two years, he had signed many of those false reports that they knew were not related to the MSG, and that investors would be aware of these false reports. . Bayliss also acknowledged that, on a joint karaoke guide, he flew to Las Vegas to destroy evidence following the completion of search warrants at company headquarters and elsewhere in December 2018.
This case is the result of an investigation by the Federal Bureau of Investigation, IRS-Criminal Investigation, and the Inspector General’s Federal Deposit Insurance Corporation Office. The Assistant General Solicitors André M. Espinosa and Kevin C. Khasigian are prosecuting the case.
The investment fraud investigation is ongoing. Roach and Bayliss are scheduled to receive a sentence from District Judge John A. Mendez on 28 January, 2020. Roach has a 10 year statutory penalty in prison. Bayliss has a maximum five-year statutory penalty in prison. The actual sentences shall, however, be determined at the discretion of the court following consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tom, aka T Rex, is seasoned financial pro that cut his teeth on the Chicago trading oil futures in 1995. In less than 3 years he bought his own seat and set up shop on the exchange. For the next 10 years Rex traded his own account and some institutional accounts. In 2017, he decided to move to Florida and focus on educating traders and writing for financial websites.