A California man was sentenced to six years and nine months in jail after it was uncovered that he defrauded investors out of millions of dollars by running a bogus cow dung-to-green energy(methane) business. Investors hoped that the scheme would provide them with income and tax breaks in exchange for helping to generate green energy. Ray Brewer, a 66-year-old Porterville resident, was arrested. According to authorities, he falsely represented to his investors that he was constructing anaerobic digesters at dairies in California’s Fresno, Kern, Kings, and Tulare counties, as well as in Idaho.
What exactly are anaerobic digesters?
According to the prosecution, anaerobic digesters use microorganisms “to break down biodegradable material and convert it into methane.” The methane can then be sold directly, which also provides investors with renewable energy credits. Prosecutors claimed that Brewer misled his investors by claiming that they would receive 66% of net earnings and tax breaks. However, it turned out to be a $8.75 million swindle. Brewer deposited the funds in his bank accounts and utilized them to live a lavish lifestyle as well as purchase lands and a home for himself. He also purchased two Dodge Ram pickup trucks.
How did Brewer deceive the investors?
Brewer allegedly led investors on guided tours of dairy farms, highlighting places where he claimed he would put digesters. Prosecutors claim that Brewer raised considerable quantities of money for these initiatives. To further fool investors, he sent them forgeries of lease agreements with dairy owners, forgeries of loan agreements with banks, forgeries of contracts with international corporations, and fabricated images depicting the machines in the process of construction.
According to authorities, Brewer went to considerable efforts to keep the appearance of progress alive by presenting his investors with fake updates on the non-existent work. Fake schedules, invoices, power generation reports, and photographs were among the modifications. Brewer is also accused of engaging in a conspiracy to repay money to select investors using monies received from other investors. When investors discovered the deception and realized they had been duped, several took legal action against Brewer. He avoided arrest, however, by traveling to Sheridan, Montana, and assuming a new name.