WASHINGTON (Legal Newsline) – The Securities and Exchange
Commission announced charges Nov. 17 against Patrick Carter, the founder and
CEO of 808 Renewable Energy Corp., and other individuals over allegations of
The other defendants in the lawsuit are Chief Operating Officer Peter Kirkbride, sales representatives Martin Kinchloe and Thomas
Flowers, and the firms 808 Investments LLC, West Coast Commodities
LLC and T.A. Flowers LLC.
According to the SEC, these defendants violated federal
anti-fraud laws and related SEC rules when they misled investors, falsely
claiming their funds would be used for new equipment to expand the company. Carter
purportedly used the funds to pay 808 Investments, which he owned, for “consulting
services.” Additionally, he diverted funds to support a lavish
lifestyle, pay commissions to sales representatives, and to make Ponzi-like
payments to investors.
“We allege that Patrick Carter orchestrated a fraudulent
scheme using 808 Renewable Energy Corp. to raise millions,” said Michele
Wein Layne, director of the SEC’s Los Angeles Office. “While telling
investors their funds would be used for the benefit of the company, Carter and
his associates looted 808 Renewable.”
Yolanda Ochoa, Christopher M. Conte, Finola H. Manvelian,
and John W. Berry of the SEC’s Los Angeles office are
handling the case, along with litigator David Van Havermaat.