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 defrauding investors.
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.