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$100 Mil Stimulus Green Company Obama Praised in State of the Union Address Goes Bankrupt
Posted By Daniel Greenfield On August 13, 2013 @ 6:16 pm In The Point | 6 Comments
The company received a subpoena from the Securities and Exchange Commission in October of 2010.
The president of Ecotality North America Don Karner was sent an additional subpoena in December of 2011, which specifically asks for any and all documentation surrounding the public announcement of the first Department of Energy grant to the company for $99.8 million on August 5, 2009.
Ecotality was awarded $99 million in 2009 and an additional $26 million in October 2011. Since the beginning of the grant period in October 2009 the company reported creating 144 jobs according to Recovery.gov .
So 100 million and 144 jobs. Not that those jobs will last because the money is already headed to bankruptcy. There would be more jobs in Obama-masked rodeo clowns.
In his 2010 State of the Union address,President Obama praised the company and the head of the company’s subsidiary, Don Karner, was First Lady Obama’s guest to the address. At the time of the speech, the company had created fewer than 30 jobs from the funds they had received. However, the Obama administration shows further poor judgment in providing the additional $26 million of funding this past October–when the company had been under investigation for insider trading for a year.
And from such spectacular beginnings, came the inevitable ending. But I’m sure Don will end up heading some job creation board for the Obamas.
Obama said, “The plan that has made all of this possible, from the tax cuts to the jobs, is the Recovery Act. That’s right – the Recovery Act, also known as the stimulus bill. Economists on the left and the right say that this bill has helped save jobs and avert disaster. But you don’t have to take their word for it. Talk to the small business in Phoenix that will triple its work force because of the Recovery Act.”
That 100 million dollar small business is bankrupt. So by all means. Talk to it. Please.
Don’t take Obama’s word for it. It’s worth a lot less than 100 million bucks.
The U.S. Department of Energy (DOE) has suspended stimulus payments to a major green energy company after the company said it is having trouble finding financing and may have to declare bankruptcy.
But there’s more good news.
The company continued receiving federal funds even as it came under federal investigation for insider trading. Last week’s SEC filing revealed that it has also been under investigation by the Department of Labor for alleged violations of the Fair Labor Standards Act and the Davis-Bacon Act.
But don’t cry for Ecotality. It’ll be back. Just look at who it brought on board.
Observers say the company’s business model is explicitly geared towards currying political favor in an effort to obtain taxpayer funds. It recently elected former Energy Secretary Steven Chu’s chief of staff to its board.
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