Weld D.A.'s probe of Abound Solar includes securities fraud
The probe includes exploring whether representatives of the solar-panel maker knew that the company's products were defective and then asked people to invest in the company without disclosing the deficiencies.
Authorities also are probing a bridge loan used by Abound to keep the company afloat until it received a $400 million loan guarantee from the U.S. Department of Energy, Buck's office said. The investigation centers on whether lending institutions allegedly were misled when Abound applied for the loan.
A third allegation being investigated centers on possible consumer fraud and whether Abound officials knowingly sold defective products.
No charges have been filed, according to a statement released by Buck's office. The investigation is separate from the U.S. House Energy and Commerce Committee's probe.
Buck's office said it would not release additional information as it continues investigating.
Loveland-based Abound, which had facilities in Larimer and Weld counties, declared bankruptcy in July. Taxpayers are expected to lose $40 million to $60 million in the Chapter 7 bankruptcy, the energy department has said.
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