Multimillion-dollar cow dung scam: California man sentenced for faking methane generation scheme
USA's multimillion-dollar cow dung scam
A California man was sentenced to six years and nine months in prison after it was revealed that he duped investors of millions of dollars by running a fake cow dung-to-green energy scheme. Investors were hopeful that the scheme would give them profits and tax incentives for contributing to generating green energy.
The 66-year-old man, named Ray Brewer, is a resident of Porterville. He falsely claimed to his investors that he was building anaerobic digesters at dairies in California’s Fresno, Kern, Kings and Tulare counties and in Idaho, according to prosecutors.
What are anaerobic digesters?
Anaerobic digesters use microorganisms “to break down biodegradable material and turn it into methane,” a statement by the prosecutors said. The methane then can be directly sold, which also provides the investors with renewable energy credits.
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The prosecutors alleged that Brewer falsely promised his investors that they would receive 66 per cent of net profits and tax incentives. However, it turned out to be a whopping $8.75 million scam.
Brewer deposited the money inhis bank accounts and used it to live a lavish life and to buy up lands and a home for himself. He also bought Dodge Ram pickup trucks.
How Brewer fooled the investors?
Brewer reportedly took investors on guided tours of dairy farms, showcasing locations where he claimed he would build digesters. According to prosecutors, Brewer purportedly raised substantial sums of money for these projects. To further deceive investors, he sent them forged lease agreements with dairy owners, counterfeit loan agreements with banks, fraudulent contracts with multinational companies, and fabricated images depicting the machines in the process of construction.
Authorities state that Brewer went to great lengths to maintain the illusion of progress, providing his investors with false updates on the non-existent construction. These updates included phoney schedules, invoices, power generation reports, and pictures. Additionally, it is alleged that Brewer engaged in a scheme of refunding money to certain investors, utilising funds obtained from other investors.
When investors eventually discovered the deceit and realised they had been defrauded, some pursued legal action against Brewer. However, he managed to evade his arrest by relocating to Sheridan, Montana, and getting a new identity.
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