U.S. News
Final Sentencing Caps $912 Million Investor Deception
Clear Facts
- California accountant Ronald J. Roach received a 66-month prison sentence for his role in a $912 million solar equipment fraud scheme.
- As the final defendant sentenced, Roach admitted to concealing the company’s lack of revenue from investors.
- DC Solar manufactured mobile generators and used generous federal tax incentives to lure in private investors.
Authorities discovered that 95 percent of claimed lease revenue was actually transfers of new investor money.
The massive criminal conspiracy involved approximately 17,000 generators valued at roughly $2.5 billion.
Investigation records show that DC Solar claimed their generators provided emergency power to cellphone towers and sporting events.
In reality, there was almost no third-party demand for the equipment, leading co-conspirators to pay old investors with funds from new ones.
“Today’s sentencing marks the final chapter in an extensive fraud that caused significant loss. This outcome reflects years of careful, methodical investigative work and a prosecution built on meticulous attention to detail,” said U.S. Attorney Eric Grant.
“As the company’s accountant, Ronald Roach concealed the truth from investors for years, enabling DC Solar to operate on fabricated financials,” said FBI Sacramento Special Agent in Charge Sid Patel.
Seven other defendants have already been sentenced in the case, including owner Jeff Carpoff, who received a 30-year term.
Roach and his associates exploited federal tax credits to deceive financial institutions and individuals out of nearly a billion dollars.
“The sentencing of Ronald Roach underscores the unwavering pursuit of accountability in this far-reaching fraud scheme,” said Linda Nguyen, Special Agent in Charge of IRS Criminal Investigation.
“Mr. Roach ignored his responsibilities as a certified public accountant, conspiring with his co-defendants to defraud individuals, financial institutions, and the U.S. Government,” said Special Agent in Charge Ryan Korner.
The successful prosecution of all eight defendants concludes one of the largest criminal fraud cases in the history of the Eastern District of California.
Federal agencies including the FBI, IRS, and FDIC worked together to dismantle the operation and hold every participant accountable.
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