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Wednesday, May 18, 2022
CEO
Of Renewable Energy Company Charged With Fraud, Identity Theft,
Money Laundering, And Obstruction Offenses
SCRANTON - The United States Attorney’s Office for the Middle District
of Pennsylvania announced that James Abrams, age 39, of Easley, South
Carolina, was indicted yesterday by a federal grand jury on wire and
mail fraud, identity theft, money laundering, unlawful monetary
transactions, obstruction of justice, and false statement offenses.
According to United States Attorney John C. Gurganus, the indictment
alleges that Abrams, the owner and Chief Executive Officer of EthosGen
LLC, provided forged documents and false information to induce several
investors to invest $1,100,000 in his company. Abrams allegedly
provided the potential investors with forged tax returns, false
financial records, forged contracts with purported customers of
EthosGen LLC, and a forged intellectual property license. The forged
documents and false information inflated EthosGen LLC’s revenues,
business activity, and profitability, thereby making it a more
attractive investment. In addition to 19 charges of wire fraud and
mail fraud, Abrams also faces five charges of aggravated identity
theft, for forging signatures and using other individuals’ personal
information on forged documents, without their authorization.
The indictment also alleges that Abrams concealed his scheme by
providing forged bank account statements and false information to
EthosGen LLC’s Chief Financial Officers and accounting professionals.
Abrams is accused of using over $792,000 of the investors’ money to
purchase a personal residence in South Carolina. To conceal his
financial activities, Abrams alleged laundered $700,000 of the funds
through a series of bank accounts under his control, before purchasing
the residence. Abrams faces 13 charges of money laundering and
unlawful financial transactions for his illicit financial activities.
Abrams also is accused of lying to his investors and former Chief
Financial Officer that he had used the funds to purchase company
inventory for EthosGen LLC. He allegedly provided investors with
falsified company reports and accounting records to corroborate his
misrepresentations about the use of the investment funds.
The indictment further alleges that, upon becoming aware of the
Internal Revenue Service’s criminal investigation of Abrams, he took
several steps to obstruct the investigation. Namely, he is accused of
creating false documents and accounting records that purported to
classify his embezzlement of investor funds as a shareholder loan, and
faces four counts of obstruction of justice. He further was charged
with seven counts of providing false statements to federal
investigators, by lying about purchasing inventory for EthosGen LLC,
claiming that EthosGen LLC owed him $800,000, stating that he provided
his investors with truthful information when they evaluated his
company during a due diligence process, and claiming ignorance about
the origin of multiple forged contracts that he sent to investors.
The indictment seeks forfeiture of the funds Abrams secured from
investors during the scheme, and of the residence he purchased with
them in South Carolina.
The case was investigated by the Internal Revenue Service’s Criminal
Investigations Division. Assistant U.S. Attorney Phillip J. Caraballo
is prosecuting the case.
The maximum penalty under federal law for the most serious offenses
are 20 years of imprisonment, a term of supervised release following
imprisonment, and a fine. The aggravated identity theft charges carry
mandatory, consecutive two-year minimum sentences of imprisonment. A
sentence following a finding of guilt is imposed by the Judge after
consideration of the applicable federal sentencing statutes and the
Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to
be innocent unless and until found guilty in court.
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
Nathan1@greenplayammonia.com
exactrix@exactrix.com
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