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Former Executive of Nuclear Power Company Pleads Guilty
Jennifer R. Ransom Guilty on One Count of Securities Fraud
U.S. Attorney’s Office
April 21, 2015
District of Idaho
(208) 334-1211
BOISE—Jennifer R. Ransom, 40, of Meridian, Idaho, pleaded guilty today to one count of securities fraud, U.S. Attorney Wendy J. Olson announced. Her guilty plea was to Count Five of the pending indictment. The grand jury returned the indictment against Ms. Ransom on November 14, 2014.
According to the plea agreement, Ransom was the Senior Vice President of Administration of Alternate Energy Holdings, Inc. (“AEHI”). AEHI was a development stage company headquartered in Eagle, Idaho that planned to construct and operate a nuclear power plant in Payette County, Idaho.
According to the plea agreement, Ransom joined AEHI in late 2007. Prior to joining AEHI, Ransom took and passed the Series 63 examination, one of the tests required to become a licensed Securities Agent, and knew it was wrongful and unlawful to engage in conduct that was designed to defraud or deceive investors by artificially controlling or fraudulently affecting the price of securities. Notwithstanding, she agreed with her co-defendant, Donald L. Gillispie, the former President and CEO of AEHI, and other “nominees” to a scheme to defraud or deceive AEHI investors.
According to the plea agreement, the scheme involved Gillispie and Ransom recruiting nominees to make purchases of AEHI stock on the market for the express purpose of artificially inflating the market price of AEHI stock. Ransom personally helped recruit one of the nominees. Without investors’ knowledge, Gillispie and Ransom provided AEHI funds, obtained almost exclusively from investors, to two of the nominees to fund their market purchases of AEHI stock.
According to the plea agreement, investors who purchased AEHI stock directly from AEHI, through Private Placement Memoranda (PPM), were offered a price discounted from the market price that nominees were attempting to inflate. However, PPM investors could only purchase restricted AEHI stock, which they could not sell for six months to one year. On September 9, 2009 through September 11, 2009, Ransom assisted a nominee in making purchases of AEHI stock on the market. The purpose of these purchases was to artificially increase the market price of AEHI stock, which was trading above the PPM price. During the next two months, private investors bought approximately $516,885 worth of AEHI restricted stock at the lower PPM price.
According to the plea agreement, Ransom received shares of AEHI stock as executive compensation. From June of 2010, through September of 2010, a period during which attempts were being made to artificially inflate the market price of AEHI stock, Ransom sold approximately 1,000,000 of her shares and received approximately $675,326 in return, of which approximately $580,780 was the proceeds of securities fraud.
As part of the plea agreement, Ransom agreed to forfeit $580,780, the proceeds of the securities fraud offense she pleaded guilty to, and to pay restitution.
The charge of securities fraud is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for July 27, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
“This defendant personally gained by deceiving investors,” said Olson. “Her guilty plea both acknowledges the wrongfulness of her conduct and sends the clear message to others that the U.S. Department of Justice and its investigating partners will take strong actions to identify and prosecute those who manipulate securities markets for personal gain.”
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation.
http://www.fbi.gov/saltlakecity/press-releases/2015/former-executive-of-nuclear-power-company-pleads-guilty
No... AEHI will not survive as the "company" has also been charge by the SEC... There is also a SEC administrative hearing initiated for delinquent financial filings that will happen within 120 days of March 10th or thereabout. They usually happen within 6-8 weeks. The stock will be revoked at that time and will be untradeable forever.
http://www.sec.gov/litigation/admin/2015/34-74459.pdf
http://dockets.justia.com/docket/idaho/iddce/1:2010cv00621/27103
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Thanks for the info.Lets hope the other crooke pleads guilty also but do you think that the company will survive in some form after all this is over or has it been over a long time ago already.
damit, just been notified by the Justice Dept. that Jennifer Ransom will plead guilty before the judge on April 21,15 Now if only the other POS will do the same we can move on.
Thanks.I still own a small position in the stock.
Yes I posted the cancelation. I believe the new date is July 13th. If I get anymore info I will post it.
I just received a victim notifiction letter from the USDJ for the first time saying the trial was going to be on Jan 13 and now someone on the board mention it was moved to July. Do you have any info as to the actual date when the trial will be held...any info would be appreciated.
AEHI SEC Admin Proceeding for Financials and filings delinquencies:
http://www.sec.gov/litigation/admin/2015/34-74459.pdf
Just have been notified the trial has been rescheduled to July. Great! Gives this POS more time to dispose of any assets he has.
Just received notice from the Victim notification office about the upcoming trial in January. Hope those two get jail time. I'm out $ 57,000.00 and want restitution or jail time.
That was the SEC civil case. The criminal case is set for trial Jan.13th
Indictments...
http://media.idahostatesman.com/smedia/2014/11/14/14/24/1e2GgU.So.36.pdf#storylink=relast
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What no jail time for the POS!
Don Gillispie and Jennifer Ransom, CEO and vice president of Alternate Energy Holdings Inc., are pictured here in 2008, walking near Elmore County property the company had proposed for a nuclear plant before moving the proposed site to Payette County
Read more here: http://www.idahostatesman.com/2014/11/14/3486596/former-executives-of-eagle-nuclear.html#storylink=cpy
The Indictment
http://media.idahostatesman.com/smedia/2014/11/14/14/24/1e2GgU.So.36.pdf#storylink=relast
WENDY J. OLSON, IDAHO STATE BAR NO. 7634
UNITED STATES ATTORNEY
RAYMOND E. PATRICCO, DISTRICT OF COLUMBIA STATE BAR NO. 454792
ASSISTANT UNITED STATES ATTORNEY
DISTRICT OF IDAHO
MARK L. WILLIAMS, NEW YORK STATE BAR NO. 4796611
TRIAL ATTORNEY, U. S. DEPARTMENT OF JUSTICE TAX DIVISION
ATTORNEYS FOR THE UNITED STATES OF AMERICA
WASHINGTON GROUP PLAZA IV
800 EAST PARK BOULEVARD, SUITE 600
BOISE, ID 83712-7788
TELEPHONE: (208) 334-1211
FACSIMILE: (208) 334-9375
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF IDAHO
UNITED STATES OF AMERICA,
Plaintiff,
vs.
DONALD L. GILLISPIE and
JENNIFER R. RANSOM,
Defendants.
Case No.
INDICTMENT
Under Seal
15 U.S.C. §§ 78j(b) and 78ff
18 U.S.C. § 2
18 U.S.C. § 371
18 U.S.C. § 1001
18 U.S.C. § 1343
26 U.S.C. § 7206(1) and (2)
The Grand Jury charges that:
GENERAL ALLEGATIONS
At all times relevant to this Indictment:
INDICTMENT - 2
The Public Company
1. Alternate Energy Holdings, Inc. (“AEHI”) was a development stage company that
planned to construct and operate a nuclear power plant in Payette County, Idaho. AEHI’s
principal place of business was Eagle, Idaho.
2. AEHI had various subsidiary or affiliated companies, including Energy Neutral Inc.,
Green Word Water Inc., Idaho Energy Complex Inc., International Reactors Inc., and Reactor
Land Development LLC.
3. The Over-The-Counter (“OTC”) securities market was the equity market for public
companies not listed on the larger stock exchanges, like the New York Stock Exchange and the
NASDAQ Stock Exchange. The OTC market was linked by computer networks, and quotations
for OTC securities may have been quoted on listing services, such as Pink Sheets. The Pink
Sheets was an inter-dealer electronic quotation and trading system.
4. In September of 2006, AEHI became a publicly-traded stock as a result of a reverse
merger. The price of AEHI’s stock was quoted on the OTC Bulletin Board and on the Pink
Sheets operated by Pink OTC Markets, Inc.
5. The United States Securities and Exchange Commission (“SEC”) was an independent
agency of the United States government that was charged by law with preserving honest and
efficient markets in securities. The federal securities laws, rules, and regulations were designed
to ensure that the financial information of publicly traded companies was accurately recorded
and disclosed to the investing public.
6. AEHI disclosed financial information to the public through various means, including
press releases, private placement memoranda, and the electronic filing with the SEC, through its
EDGAR database, of quarterly reports (SEC Forms 10-Q) and annual reports (SEC Forms 10-K).
INDICTMENT - 3
Relevant Individuals and Entities
7. DONALD L. GILLISPIE was the founder, and at various times since 2006, the President,
Chief Executive Officer, Chief Operating Officer, Director, and Chairman, of AEHI.
8. Energy Executive Consulting, LLC (“Energy Executive”) was an Idaho limited liability
company based in Eagle, Idaho. DONALD L. GILLISPIE owned Energy Executive and was the
signatory on its bank account.
9. M.G. was DONALD L. GILLISPIE’s former wife. Until 2010, M.G. and DONALD L.
GILLISPIE filed joint tax returns. They filed for divorce in 2008 and the divorce decree was
entered in 2011.
10. T.S. was DONALD L. GILLISPIE’s daughter.
11. JENNIFER R. RANSOM was the Senior Vice President of Administration and Secretary
of AEHI. She also was the President of Energy Neutral.
12. Beginning in May of 2008, DONALD L. GILLISPIE and JENNIFER R. RANSOM
shared joint Mountain West Bank account xxxxxxxx3480.
13. Bosco Financial, LLC (“Bosco”) was an Idaho limited liability company based in Boise,
Idaho. JENNIFER R. RANSOM owned 99.99% of Bosco and was the signatory on its bank
account.
14. J.H. was JENNIFER R. RANSOM’s live-in significant other. He purchased AEHI stock
at DONALD L. GILLISPIE’s and JENNIFER R. RANSOM’s direction with money provided by
AEHI.
15. B.H. was a businessman in Virginia. He purchased AEHI stock at DONALD L.
GILLISPIE’s direction.
INDICTMENT - 4
16. M.D. was a college professor in Florida. He purchased AEHI stock at DONALD L.
GILLISPIE’s direction with money provided by AEHI.
17. E.C. was a stock broker and financial planner in Boise, Idaho. He purchased AEHI stock
at DONALD L. GILLISPIE’s direction.
18. The United States Department of the Treasury (“Treasury Department”) was a
department of the executive branch of the United States.
19. The Internal Revenue Service (“IRS”) was an agency of the executive branch of the
United States.
Capital Financing
20. From in or about October 2006 to in or about October 2010, AEHI issued Private
Placement Memoranda (“PPMs”). The PPMs were written offers to sell restricted AEHI stock to
accredited investors (persons with significant net worth and/or income). Restricted AEHI stock
could not be resold by an investor for approximately six months to one year.
21. Typically, the price of AEHI restricted stock offered in the PPMs was substantially
discounted from the market price of unrestricted stock quoted on the OTC Bulletin Board and on
the Pink Sheets.
22. Often in advance of the issuance of PPMs, AEHI issued press releases. The press
releases touted AEHI’s operations and its prospects for growth. From in or about September of
2006 when AEHI went public until in or about October of 2010, AEHI issued approximately 149
press releases.
23. From in or about October of 2006 to in or about October of 2010, AEHI raised
approximately $14 million in capital from PPM investors.
INDICTMENT - 5
24. From in or about October of 2006 through in or about October of 2010, AEHI did not
generate any material income.
COUNT ONE
Conspiracy to Commit Securities Fraud and Wire Fraud
18 U.S.C. §371
25. The allegations set forth in paragraphs 1 through 22 of this Indictment are
realleged and incorporated as though set forth in full herein.
26. From in or about October of 2006 through in or about December of 2010, in the District
of Idaho and elsewhere, the defendants herein,
DONALD L. GILLISPIE and JENNIFER R. RANSOM,
did knowingly and willfully combine, conspire, confederate, and agree with each other and
others known and unknown to the Grand Jury to commit certain offenses against the United
States, namely:
A. Securities Fraud, that is, by the use of the means and instrumentalities of
interstate commerce and the mails, directly and indirectly, to willfully employ manipulative and
deceptive devices and contrivances in violation of 17 C.F.R. § 240.10b-5, by (a) employing
devices, schemes, and artifices to defraud, (b) making untrue statements of material facts and
omitting to state material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, and (c) engaging in acts, practices,
and courses of business which operated and would operate as a fraud and deceit upon a person in
connection with the purchase and sale of securities, in violation of Title 15, United States Code,
Sections 78j(b) and 78ff; and
B. Wire Fraud, that is, having devised and intending to devise a scheme and artifice
to defraud, as to material matters, investors in AEHI common stock, and to obtain money and
INDICTMENT - 6
property by means of materially false and fraudulent pretenses, representations and promises, to
knowingly and willfully use interstate wires for the purpose of executing such scheme and
artifice, in violation of Title 18, United States Code, Section 1343.0
Object of the Conspiracy
27. It was an object of the conspiracy for the conspirators to unjustly enrich themselves by
artificially inflating the market price of AEHI stock, and obtaining capital financing from private
investors through false pretenses.
Manner and Means of the Conspiracy
28. In furtherance of the conspiracy and to accomplish its objects, the conspirators employed
the following manner and means:
A. DONALD L. GILLISPIE and JENNIFER R. RANSOM recruited nominees B.H.,
M.D., E.C., and J.H. to make purchases of AEHI stock with the express purpose of artificially
inflating the market price of the stock;
B. DONALD L. GILLISPIE, without investors’ knowledge, caused AEHI to provide
company funds, obtained almost exclusively from investors, to nominees M.D. and J.H. which
they used to buy AEHI stock and thereby attempt to artificially inflate its market price;
C. DONALD L. GILLISPIE instructed nominees B.H., M.D., E.C., and J.H. on the
timing, quantity, and price to purchase AEHI stock, so as to most effectively attempt to
artificially inflate the price;
D. DONALD L. GILLISPIE caused AEHI to issue additional shares of stock to
nominees B.H., J.H., and E.C. as rewards for their attempts to artificially inflate the price of
AEHI stock;
INDICTMENT - 7
E. DONALD L. GILLISPIE caused AEHI to issue misleading press releases to
attempt to artificially inflate the market price of AEHI stock;
F. DONALD L. GILLISPIE caused AEHI to make misleading representations in
SEC filings to attempt to artificially inflate the market price of AEHI stock;
G. DONALD L. GILLISPIE caused AEHI to make misleading representations in
PPMs to attempt to obtain private investors;
H. DONALD L. GILLISPIE caused AEHI to issue PPMs to private investors,
offering them shares of AEHI stock at a substantial discount from the market price of AEHI
stock, in order to obtain more capital financing. From this investor money, DONALD L.
GILLISPIE and JENNIFER R. RANSOM received significant salaries and made personal
expenditures that they did not report to the Internal Revenue Service as income;
I. During a period when attempts were being made to artificially inflate the price of
AEHI stock, DONALD L. GILLISPIE caused to be issued shares of AEHI stock to himself, his
then-wife M.G, his daughter T.S., JENNIFER R. RANSOM, and relatives of JENNIFER R.
RANSOM;
J. During a period when attempts were being made to artificially inflate the price of
AEHI stock, DONALD L. GILLISPIE caused to be issued shares of AEHI stock to vendors for
services rendered personally to DONALD L. GILLISPIE, and as payment for goods sold
personally to DONALD L. GILLISPIE;
K. During a period when attempts were being made to artificially inflate the market
price of AEHI stock, JENNIFER R. RANSOM sold approximately 1,000,000 of her shares and
received approximately $675,326 in return. Of this amount, she provided approximately
$190,000 to DONALD L. GILLISPIE;
INDICTMENT - 8
L. During a period when attempts were being made to artificially inflate the market
price of AEHI stock, M.G. (DONALD L. GILLISPIE’s then-wife) sold approximately 7,000,000
of her shares and received approximately $2,915,204 in return;
M. During a period when attempts were being made to artificially inflate the market
price of AEHI stock, T.S. (DONALD L. GILLISPIE’s daughter) sold approximately 4,050,000
of her shares and received approximately $975,344 in return.
Overt Acts
29. In furtherance of the conspiracy and to accomplish its objects, at least one of the coconspirators
committed and caused to be committed, in the District of Idaho and elsewhere, at
least one overt act, as set forth in Counts 2 through 7 below (which are herein incorporated by
reference), among others.
All in violation of Title 18, United States Code, Section 371.
COUNT TWO
Securities Fraud
15 U.S.C. §§78j(b) and 78ff
30. The allegations set forth in paragraphs 1 through 22 of the General Allegations, and
paragraphs 23 through 27 of Count One, of this Indictment are realleged and incorporated as
though set forth in full herein.
31. From on or about January 6, 2009 to on or about January 8, 2009, in the District of Idaho
and elsewhere, the defendant herein,
DONALD L. GILLISPIE
did knowingly and willfully, by the use of the means and instrumentalities of interstate
commerce and the mails, directly and indirectly, to willfully employ manipulative and deceptive
devices and contrivances in violation of 17 C.F.R. § 240.10b-5, by (a) employing devices,
INDICTMENT - 9
schemes, and artifices to defraud, (b) making untrue statements of material facts and omitting to
state material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, and (c) engaging in acts, practices,
and courses of business which operated and would operate as a fraud and deceit upon a person in
connection with the purchase and sale of securities, to wit: On or about January 6, 2009,
DONALD L. GILLISPIE emailed M.D. and wrote: “If I wire you $5,000 can you start picking
up stock chunks of 5,000-10,000 at the ask price? Thanks, Don.” On or about January 7, 2009,
M.D. purchased 1,000 shares of AEHI stock. On or about January 8, 2009, M.D. purchased
4,600 shares of AEHI stock. On January 8, 2009, DONALD L. GILLISPIE caused AEHI to
wire transfer $5,000 to M.D.
All in violation of Title 15, United States Code, Sections 78j(b), 78ff; Title 17, Code of Federal
Regulations, Section § 240.10b-5; and Title 18, United States Code, Section 2.
COUNT THREE
Securities Fraud
15 U.S.C. §§78j(b) and 78ff
32. The allegations set forth in paragraphs 1 through 22 of the General Allegations, and
paragraphs 23 through 27 of Count One, of this Indictment are realleged and incorporated as
though set forth in full herein.
33. From on or about January 8, 2009 to on or about January 13, 2009, in the District of
Idaho and elsewhere, the defendant herein,
DONALD L. GILLISPIE,
did knowingly and willfully, by the use of the means and instrumentalities of interstate
commerce and the mails, directly and indirectly, to willfully employ manipulative and deceptive
devices and contrivances in violation of 17 C.F.R. § 240.10b-5, by (a) employing devices,
INDICTMENT - 10
schemes, and artifices to defraud, (b) making untrue statements of material facts and omitting to
state material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, and (c) engaging in acts, practices,
and courses of business which operated and would operate as a fraud and deceit upon a person in
connection with the purchase and sale of securities, to wit: On or about January 8, 2009,
DONALD L. GILLISPIE emailed M.D., blind copying E.C., and wrote: “whatever you can do to
get the stock above 10 [cents] will really help as we have quite a few investors who are looking
at buying stock from us at 10 cents now. . . we need cash flow.” On or about January 9, 2009,
M.D. purchased 2,000 shares of AEHI stock. On or about January 12, 2009, M.D. purchased
100 shares of AEHI stock. On or about January 13, 2009, DONALD L. GILLISPIE caused
AEHI to issue a PPM offering 60,000,000 shares of restricted AEHI stock at a price of $.05 per
share.
All in violation of Title 15, United States Code, Sections 78j(b), 78ff; Title 17, Code of Federal
Regulations, Section § 240.10b-5; and Title 18, United States Code, Section 2.
COUNT FOUR
Securities Fraud
15 U.S.C. §§78j(b) and 78ff
34. The allegations set forth in paragraphs 1 through 22 of the General Allegations, and
paragraphs 23 through 27 of Count One, of this Indictment are realleged and incorporated as
though set forth in full herein.
35. From on or about August 25, 2009 to on or about September 3, 2009, in the District of
Idaho and elsewhere, the defendants herein,
DONALD L. GILLISPIE and JENNIFER R. RANSOM,
INDICTMENT - 11
did knowingly and willfully, by the use of the means and instrumentalities of interstate
commerce and the mails, directly and indirectly, to willfully employ manipulative and deceptive
devices and contrivances in violation of 17 C.F.R. § 240.10b-5, by (a) employing devices,
schemes, and artifices to defraud, (b) making untrue statements of material facts and omitting to
state material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, and (c) engaging in acts, practices,
and courses of business which operated and would operate as a fraud and deceit upon a person in
connection with the purchase and sale of securities, to wit: On or about August 25, 2009,
DONALD L. GILLISPIE emailed M.D., copying JENNIFER R. RANSOM, and wrote: “Please
contact [J.H.] [telephone number] this week to explain how to buy our stock on line and what
you have been doing to move price-up. He has an on-line account and funds.” On or about
August 26, 2009, J.H. purchased 100 shares of AEHI stock. On or about September 3, 2009,
J.H. purchased 200 shares of AEHI stock.
All in violation of Title 15, United States Code, Sections 78j(b), 78ff; Title 17, Code of Federal
Regulations, Section § 240.10b-5; and Title 18, United States Code, Section 2.
COUNT FIVE
Securities Fraud
15 U.S.C. §§78j(b) and 78ff
36. The allegations set forth in paragraphs 1 through 22 of the General Allegations, and
paragraphs 23 through 27 of Count One, of this Indictment are realleged and incorporated as
though set forth in full herein.
37. From on or about September 9, 2009 to on or about September 16, 2009,in the District of
Idaho and elsewhere, the defendants herein,
DONALD L. GILLISPIE and JENNIFER R. RANSOM,
INDICTMENT - 12
did knowingly and willfully, by the use of the means and instrumentalities of interstate
commerce and the mails, directly and indirectly, to willfully employ manipulative and deceptive
devices and contrivances in violation of 17 C.F.R. § 240.10b-5, by (a) employing devices,
schemes, and artifices to defraud, (b) making untrue statements of material facts and omitting to
state material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, and (c) engaging in acts, practices,
and courses of business which operated and would operate as a fraud and deceit upon a person in
connection with the purchase and sale of securities, to wit: On or about September 9, 2009,
JENNIFER R. RANSOM emailed J.H. and wrote: “Will you send me you [sic] stock info. That
way we can buy when you are unavailable. That will take pressure off when you can make a
buy.” On or about September 10, 2009, J.H. emailed JENNIFER R. RANSOM his Zecco.com
user identification, password, and trading password. On or about September 10, 2009, J.H.’s
Zecco.com account purchased 400 shares of AEHI stock. On or about September 11, 2009,
J.H.’s Zecco.com account purchased 400 shares of AEHI stock. On or about September 16,
2009, J.H.’s Zecco.com account purchased 200 shares of AEHI stock.
All in violation of Title 15, United States Code, Sections 78j(b), 78ff; Title 17, Code of Federal
Regulations, Section § 240.10b-5; and Title 18, United States Code, Section 2.
COUNT SIX
Securities Fraud
15 U.S.C. §§78j(b) and 78ff
38. The allegations set forth in paragraphs 1 through 22 of the General Allegations, and
paragraphs 23 through 27 of Count One, of this Indictment are realleged and incorporated as
though set forth in full herein.
INDICTMENT - 13
39. From on or about June 14, 2010 to on or about June 16, 2010,in the District of Idaho and
elsewhere, the defendants herein,
DONALD L. GILLISPIE and JENNIFER R. RANSOM,
did knowingly and willfully, by the use of the means and instrumentalities of interstate
commerce and the mails, directly and indirectly, to willfully employ manipulative and deceptive
devices and contrivances in violation of 17 C.F.R. § 240.10b-5, by (a) employing devices,
schemes, and artifices to defraud, (b) making untrue statements of material facts and omitting to
state material facts necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, and (c) engaging in acts, practices,
and courses of business which operated and would operate as a fraud and deceit upon a person in
connection with the purchase and sale of securities, to wit: On or about June 14, 2010,
DONALD L. GILLISPIE emailed M.D. and wrote: “Please buy the 5000 shares at ask and see if
we can get to 50.” On or about June 15, 2010, M.D. purchased 5,300 shares of AEHI stock,
including 5,000 shares at $0.52. On or about June 15, 2010, DONALD L. GILLISPIE caused
AEHI to pay $10,000 to M.D.’s consulting company. On or about June 15, 2010, JENNIFER R.
RANSOM sold 163,000 shares of AEHI stock. On or about June 16, 2010, JENNIFER R.
RANSOM sold 40,000 shares of AEHI stock.
All in violation of Title 15, United States Code, Sections 78j(b), 78ff; Title 17, Code of Federal
Regulations, Section § 240.10b-5; and Title 18, United States Code, Section 2.
COUNT SEVEN
Wire Fraud
18 U.S.C. §1343
40. The allegations set forth in paragraphs 1 through 22 of the General Allegations, and
paragraphs 23 through 27 of Count One, of this Indictment are realleged and incorporated as
though set forth in full herein.
INDICTMENT - 14
41. On or about June 14, 2010, in the District of Idaho and elsewhere, the defendants herein,
DONALD L. GILLISPIE and JENNIFER R. RANSOM,
having devised and intending to devise a scheme and artifice to defraud, as to material matters,
AEHI investors, and to obtain money and property by means of materially false and fraudulent
pretenses, representations and promises from AEHI investors, did knowingly and willfully use
interstate wires for the purpose of executing such scheme and artifice, to wit: On or about June
14, 2010, DONALD L. GILLISPIE emailed M.D. and wrote: “Please buy the 5000 shares at ask
and see if we can get to 50.”
All in violation of Title 18, United States Code, Section 1343.
COUNT EIGHT
Conspiracy to Defraud the United States
18 U.S.C. §371
42. The allegations set forth in paragraphs 1 through 22 of the General Allegations, and
paragraphs 23 through 27 of Count One, of this Indictment are realleged and incorporated as
though set forth in full herein.
43. From in or about December of 2007 through in or about 2011, in the District of Idaho and
elsewhere, the defendants herein,
DONALD L. GILLISPIE and JENNIFER R. RANSOM,
did unlawfully, voluntarily, intentionally and knowingly combine, conspire, confederate, and
agree with each other and others known and unknown to the Grand Jury, to defraud the United
States for the purpose of impeding, impairing, obstructing, and defeating the lawful Government
functions of the Internal Revenue Service of the Treasury Department in the ascertainment,
computation, assessment, and collection of the revenue: to wit, income taxes.
INDICTMENT - 15
Manner and Means
In furtherance of the conspiracy and to accomplish its object, the conspirators employed
the following manner and means:
44. In 2008 through 2010, DONALD L. GILLISPIE and JENNIFER R. RANSOM received
significant income from AEHI;
45. To avoid reporting this income to the Internal Revenue Service, DONALD L. GILLISPIE
instructed the Chief Financial Officer of AEHI not to issue Forms 1099 to the Internal Revenue
Service for himself and JENNIFER R. RANSOM;
46. Later, after the Chief Financial Officer indicated he would issue Forms 1099 for all
persons working for AEHI – but not for LLC’s – DONALD L. GILLISPIE and JENNIFER R.
RANSOM formed Energy Executive Consulting, LLC and Bosco Financial, LLC, respectively;
47. From that point forward, DONALD L. GILLISPIE and JENNIFER R. RANSOM caused
AEHI to issue compensation checks to Energy Executive Consulting, LLC and Bosco Financial,
LLC, rather than to DONALD L. GILLISPIE and JENNIFER R. RANSOM personally. As a
result, AEHI did not issue Forms 1099 to the Internal Revenue Service reporting the income of
DONALD L. GILLISPIE and JENNIFER R. RANSOM;
48. For tax years 2008 and 2009, DONALD L. GILLISPIE filed joint individual tax returns
that omitted income from AEHI;
49. For tax year 2008, JENNIFER R. RANSOM filed an individual tax return that omitted
income from AEHI.
Overt Acts
INDICTMENT - 16
50. In furtherance of the conspiracy and to accomplish its objects, at least one of the coconspirators
committed and caused to be committed, in the District of Idaho and elsewhere, at
least one of the following overt acts, among others:
A. On or about December 17, 2007, DONALD L. GILLISPIE and JENNIFER R.
RANSOM signed a “Unanimous Consent and Waiver of Notice of the Board of Directors” that
approved a $10,000 per month stipend paid by AEHI to DONALD L. GILLISPIE, beginning on
January 1, 2008;
B. At a date unknown, but prior to January 1, 2008, DONALD L. GILLISPIE and
JENNIFER R. RANSOM signed a “Services Contract between Alternate Energy Holdings and
Ransom Insurance” that approved a $13,500 monthly payment by AEHI to Ransom Insurance,
beginning in January of 2008;
C. On or about April 1, 2008, DONALD L. GILLISPIE and JENNIFER R.
RANSOM signed an “Agreement for Executive Services” that approved a $20,000 monthly
salary, a $10,000 monthly expense payment, and a stock award of 2,000,000 shares annually, by
AEHI to DONALD L. GILLISPIE;
D. On or about September 11, 2009, DONALD L. GILLISPIE filed with the Internal
Revenue Service a false 2008 joint individual income tax return wherein he omitted income from
AEHI;
E. On or about October 14, 2009, JENNIFER R. RANSOM caused to be filed with
the Internal Revenue Service a false 2008 individual income tax return wherein she omitted
income from AEHI;
INDICTMENT - 17
F. On or about April 5, 2010, DONALD L. GILLISPIE caused to be filed with the
Internal Revenue Service a 2009 joint individual income tax return wherein he omitted income
from AEHI;
G. On or about October 12, 2010, JENNIFER R. RANSOM falsely stated to a Tax
Compliance Officer of the Internal Revenue Service, during an audit interview, that she had
reported all of her income on her 2008 individual tax return;
H. On or about May 16, 2011, DONALD L. GILLISPIE caused to be filed with the
Internal Revenue Service a 2009 joint amended individual income tax return wherein he omitted
income from AEHI in 2009;
I. On or about September 14, 2011, during an interview with law enforcement
agents from the Federal Bureau of Investigation and Internal Revenue Service, Criminal
Investigation Division, JENNIFER R. RANSOM falsely stated that she had provided her tax
preparer with access to all of her bank accounts into which all money from AEHI was deposited.
All in violation of Title 18, United States Code, Section 371.
COUNT NINE
Making and Subscribing a False Tax Return
26 U.S.C. §7206(1)
On or about September 11, 2009, in the District of Idaho, the defendant, DONALD L.
GILLISPIE, a resident of Eagle, Idaho, did willfully make and subscribe a joint U.S. Individual
Income Tax Return, of DONALD L. GILLISPIE and M.G. for the calendar year 2008, which
was verified by a written declaration that it was made under the penalties of perjury and which
he did not believe to be true and correct as to every material matter. That income tax return,
which was mailed from District of Idaho and was filed with the Internal Revenue Service,
INDICTMENT - 18
omitted income from AEHI, whereas, as he then and there well knew he received this income
from AEHI.
All in violation of Title 26, United States Code, Section 7206(1) and Title 18, United States
Code, Section 2.
COUNT TEN
Aiding and Assisting in the Preparation and Presentation of a False Tax Return
26 U.S.C. §7206(2)
On or about October 14, 2009, in the District of Idaho, the defendant, JENNIFER R.
RANSOM, a resident of Star, Idaho, did willfully aid and assist in, and procure, counsel, and
advise the preparation and presentation, to the Internal Revenue Service, of a U.S. Individual
Income Tax Return of JENNIFER R. RANSOM for the calendar year 2008. The return, which
was electronically filed with the Internal Revenue Service by a tax preparer at the defendant’s
direction, was false and fraudulent as to a material matter, in that it omitted income from AEHI,
whereas, as she then and there well knew, she received this income from AEHI.
All in violation of Title 26, United States Code, Section 7206(2).
COUNT ELEVEN
Aiding and Assisting in the Preparation and Presentation of a False Tax Return
26 U.S.C. §7206(2)
On or about April 5, 2010, in the District of Idaho, the defendant, DONALD L.
GILLISPIE, a resident of Eagle, Idaho, did willfully aid and assist in, and procure, counsel, and
advise the preparation and presentation, to the Internal Revenue Service, of a joint U.S.
Individual Income Tax Return of DONALD. L. GILLISPIE and M.G. for calendar year 2009.
The return, which was electronically filed with the Internal Revenue Service by a tax preparer at
the defendant’s direction, was false and fraudulent as to a material matter, in that it omitted
INDICTMENT - 19
income from AEHI, whereas, as he then and there well knew he received this income from
AEHI.
All in violation of Title 26, United States Code, Section 7206(2).
COUNT TWELVE
False Statement
18 U.S.C. § 1001
On or about October 12, 2010, JENNIFER R. RANSOM, did willfully and knowingly
make a materially false, fictitious, and fraudulent statement and representation in a matter within
the jurisdiction of the executive branch of the Government of the United States, by advising a
Tax Compliance Officer of the Internal Revenue Service, during an audit interview in Boise,
Idaho, in the District of Idaho, that she had reported all of her income on her 2008 U.S.
Individual Income Tax Return. The statement and representation was false because, as
JENNIFER R. RANSOM then and there knew, she omitted most of her income from AEHI on
her 2008 U.S. Individual Income Tax Return.
All in violation of Title 18, United States Code, Section 1001.
COUNT THIRTEEN
False Statement
18 U.S.C. § 1001
On or about September 14, 2011, JENNIFER R. RANSOM, did willfully and knowingly
make a materially false, fictitious, and fraudulent statement and representation in a matter within
the jurisdiction of the executive branch of the Government of the United States, by advising
agents of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal
Investigation Division, during an interview in Eagle, Idaho, in the District of Idaho, that she had
provided her tax preparer with access to all of her bank accounts into which all money from
INDICTMENT - 20
AEHI was deposited. The statement and representation was false because, as JENNIFER R.
RANSOM then and there knew, she did not provide her tax preparer with access to her personal
bank accounts into which most of her AEHI income was deposited.
All in violation of Title 18, United States Code, Section 1001.
COUNT FOURTEEN
False Statement
18 U.S.C. § 1001
That on or about September 14, 2011, JENNIFER R. RANSOM, did willfully and
knowingly make a materially false, fictitious, and fraudulent statement and representation in a
matter within the jurisdiction of the executive branch of the Government of the United States, by
advising agents of the Federal Bureau of Investigation and the Internal Revenue Service,
Criminal Investigation Division, during an interview in Eagle, Idaho, in the District of Idaho, that
she never had a personal relationship, beyond friendship, with Donald L. Gillispie. The
statement and representation was false because, as JENNIFER R. RANSOM then and there
knew, she had a romantic relationship with Donald L. Gillispie.
All in violation of Title 18, United States Code, Section 1001.
CRIMINAL FORFEITURE ALLEGATION
18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c)
The allegations contained in all paragraphs of this Indictment are incorporated by
reference as though set forth in full herein for the purpose of noticing forfeitures pursuant to Title
18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(c).
The defendants DONALD L. GILLISPIE and JENNIFER R. RANSOM shall forfeit to the
United States, all property, real or personal, which constitutes or is derived from proceeds
INDICTMENT - 21
traceable to said violations of Title 15, United States Code, Section 78ff and Title 18, United
States Code, Sections 371 and 1343, including but not limited to the following:
A. Cash Proceeds: At least $ 14,100,000.00 in United States currency, and all
interest and proceeds traceable thereto in that such sum in aggregate is property which
constituted proceeds of the charged offenses which were subsequently expended, spent,
distributed or otherwise disposed of by the defendants, and as to which the defendants are liable,
representing the amount of proceeds obtained as a result of the said offenses.
B. Bank Account: All funds received on behalf of, or credited to, bank accounts,
investment accounts or management accounts, held in the United States or overseas, in which the
said defendants have an interest, including but not limited to the following:
1. Cash funds currently on deposit with:
PLAZA BANK
LAS VEGAS BRANCH
8275 West Flamingo Road
Las Vegas, Nevada 89135
Account Name: BLACK AND LOBELLO
Account number: xxxxx2271
Account Balance: Approx. $2,020,000.00
C. Substitute Assets: If any of the properties and interests described above as being
subject to forfeiture, as a result of any act or omission of the defendants:
1. cannot be located upon the exercise of due diligence;
2. has been transferred or sold to or deposited with a third party;
3. has been placed beyond jurisdiction of the court;
4. has substantially diminished in value; or
has been commingled with other property which cannot be divided without difficulty; it is the
intent of the United States, pursuant to 21 U.S.C. § 853(p), as incorporated by 28 U.S.C. §
INDICTMENT - 22
2641(c), to seek forfeiture of any other property of said defendants up to the value of the
forfeitable properties described above.
DATED this 13th day of November, 2014.
A TRUE BILL
/s/ [Signature on Reverse]
FOREPERSON
WENDY J. OLSON
United States Attorney
By:
___________________________
RAYMOND E. PATRICCO
Assistant United States Attorney
MARK L. WILLIAMS
Trial Attorney
U.S. Department of Justice, Tax Division
Former execs of Idaho energy company indicted
KTVB 6:01 p.m. MST November 14, 2014
BOISE -- Two former executives of an Eagle-based company that planned to build a nuclear power plant now face federal fraud charges.
The company - Alternate Energy Holdings - won zoning approval three years ago to build a nuclear plant in Payette County, but has not cleared the federal approval process.
Company founder Don Gillispie stepped down as CEO in 2012. He cited health concerns. At the time, federal prosecutors were investigating allegations that he conspired to inflate the market price of Alternate Energy stock.
A grand jury handed up an indictment Thursday - charging Gillispie and former senior vice president Jennifer Ransom with 14 counts, including conspiracy, securities fraud, wire fraud, and lying to the IRS.
The U.S. Attorney's Office says the crimes took place between October of 2006 and December 2010.
Gillispie made his first court appearance today.
aehi (Photo: KTVB)
Leslunier, I hear you – I’m in that boat also. It’s nice seeing others recognize what’s going on here. Here’s another article for you.
http://divineamerica.blogspot.com/2014/09/when-using-your-powers-for-good-expect.html
Not the point I was trying to make. I don't care if your for or against nuclear. Government intervention put this company out of business and hurt many a shareholder. I lost $ 68,000.00 on this POS thanks to our POS in Washington.
The header info pretty much tells the story... $3 billion to build nuclear facility and this stock is at .0002/share...
Besides nobody wants nuclear pollution including showing up in recycled metals.
Someone (EXC I think) is building new NG plants. I bet it didn't cost them 6 billion or even close to it...
Wish some one would bring attention to the BS that goes on in the government
Maybe Dateline NBC.
Send the whole story to them. Can't hurt.
According to this article, the company has got a pretty decent shot if Don gets a trial...
http://www.darkpolitricks.com/2014/09/story-don-gillispie-part-two/
Oh they'll pump the stock to pay the legal bill!!!$$$
Hello, is anybody here?
Has anyone received any money from the $450,000.00 class action settlement? It will be 2 years this July since it was settled.
I am still in AEHI I think the CEO before should have know about LTBR Lightbridge Corp it would be good for this place check it out to see what you think? They had a reverse split I think to get on a larger board. I am not in it because of my age I thought it would take to long for a good out come but they came a long ways since then. Working on nuclear engery that is not so dangerous and cannot make a nucular boom out of it.
Yes I'm still in. Didn't sell but have no thoughts this could be rescued.
There was a class action settlement almost two years ago with a judgement to the shareholders. To this date nobody has received a dime. Very suspicious. Wouldn't waste a penny on this POS.
No SEC filings in a long time. Beware!
Ok thanks for the reply will investigate futher
The 8-K is about the resignation of their accounting firm...
http://www.sec.gov/Archives/edgar/data/1421874/000143774914001745/aehi20140207_8ka.htm
There are much better investment opportunity's out there than this SEC suspended Grey market scam...
Thats a big hit. Time to do some DD and see what's up tomorrow!
Something's going on... New owner j Honeycutt... Updated 8k firing law firm
I dunno...but this is DEFINITELY on my radar for now!
I think I'm going to put back in my order and just sit... WAITING PATIENTLY IN THE CORNER...
So people will intentionally trade $1600 into a stock knowing they will lose all but $40 when it falls back to .0001 to write off $1560??? Seems curious. Even if they were in the max tax bracket that would only really save them maybe $500-600 vs the $1560 they spend...unless they were on the bubble (right on the edge of a different bracket). Highly Unlikely IMO
Hi NOvember...no PM ..yeah I bought many years ago, never sold them. You think it might come back to life??? I haven't heard anything.AEHI
Dead? Two days before you posted (a week ago) someone was ok staking $1600 on a 400k play on this dead stock. Makes you wonder, huh?
I'm trying to get 1 mill @ .0001
Thanks for drawing my attention to this company, defiantly a steal at this price. Webpage looks fancy, although it hasn't seen any recent activity I do feel like you may be onto something big. I'll have to get some fund available and take a gamble with you. If I do throw in I'll try and secure 1,000,000 shares for $100. I can afford to lose that much on .0001's. GL buddy
Looks like this board is dead... Hope it gets a spark... I'm buying on Monday to test the waters
Donald Gillispie sells out...
41,370,500 @ .0025
Form 4
http://www.sec.gov/Archives/edgar/data/1421874/000144586613000684/xslF345X03/gillispieform4.xml
I found this on another board
Back to nuclear power
http://ibankcoin.com/flyblog/2013/02/06/rumored-new-energy-secretary-nuclear-bull/
Does any one know what the status of the class action suit is. Thought the court approved the settlement in Oct.
I know...makes you wonder why they bothered. Trying to save face... AEHI
Pure BS PR. Nothing said about where we are regarding permits, studies, future time frame etc.
What about their attempt to get us relisted??? No news.
Pure BS PR. Nothing said about where we are regarding permits, studies, future time frame etc.
What about their attempt to get us relisted??? No news.
This came out today FWIW
AEHI Sees Path to Completing Proposed Nuclear Power Plant Based on 2012 Industry Success, ISU Nuclear Training Designation a Key Component
BOISE, IDAHO - December 28, 2012: Alternate Energy Holdings, Inc. (OTC:AEHI; www.aehipower.com)says confidence is high in its plans to build a nuclear power plant in Idaho following a number of successes for the nuclear industry as a whole in 2012. Successes include construction commencement on five new reactors and four additional reactor license approvals are expected in 2013 from the Nuclear Regulatory Commission.
New reactors under construction include two in Georgia at the Vogtle Electric Generating Plant, two in South Carolina at V.C. Summer Nuclear Station, and one in Tennessee at Watts Bar Nuclear Generating Station. The four expected NRC approvals include two reactors in Florida with Progress Energy, which is proposing a new plant on a currently undeveloped site, and two proposed reactors at Duke's Lee Station in South Carolina.
Another key component for AEHI is the recent designation for Idaho State University making its Energy Systems Technology and Education Center (ESTEC) the Northwest Regional Center of Excellence for Nuclear Education and Training by the Nuclear Energy Institute (NEI). According to ISU, ESTEC, through ISU's College of Technology will soon begin coordinating the nuclear energy education and training for technicians in a nine-state region.
The achievement is viewed as a beneficial component to the future of AEHI's Idaho Energy Complex, since the Nuclear Regulatory Commission requires a comprehensive plan for training personnel prior to the approval and construction of a nuclear power plant.
In June 2011 Payette County Board of Commissioners granted AEHI its local siting approval to build a proposed nuclear power plant. The recent announcement from ISU now sets the stage for supporting the Federal approval process, which the company plans to enter following a required environmental study that it plans to implement in 2013.
In other national nuclear power news the Department of Energy (DOE) recently awarded Babcock & Wilcox (B&W) in partnership with the Tennessee Valley Authority funding to develop, license, and implement Small Modular Reactors (SMRs) in the United States.
Also negotiations to approve an
$8.3 billion federal loan guarantee for the construction of Southern Company's two new reactors at Plant Vogtle in Georgia is expected to be finalized in the near future. The Federal Loan Guarantee program was established in August 2011.
About Alternate Energy Holdings, Inc. (http://www.aehipower.com) -- Alternate Energy Holdings develops and markets innovative carbon-free energy sources. The company is the nation's only publicly traded independent nuclear power plant developer seeking to build a new nuclear power plant; Idaho Energy Complex is the lead project. Other business units include Energy Neutral(R), which reduces energy demands for homes and businesses using primarily renewables (http://www.energyneutralinc.com) and Green World Water(TM), which markets nuclear desalination reactors primarily to developing countries for production of potable water, power generation and other suitable applications (http://www.greenworld-h2o.com
Safe Harbor Statement: Statements in this press release which are not purely historical, including statements regarding Alternative Energy Holdings', intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. As such, they are subject to risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements. . The forward-looking statements involve risks and uncertainties including, but not limited to, the risk the company may not raise sufficient money to fund the costs and expenses of the COLA application process, the risk that the company may experience delays in the COLA application process and the risk that the COLA application will not receive regulatory approval. Our business could be affected by a number of other factors, including the risk factors listed from time to time in the company's SEC reports including, but not limited to, the annual report on Form 10-K for the fiscal year ended December 31, 2011. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Alternate Energy Holdings, Inc. disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
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The Payette Site
AEHI PROJECTS & PARTNERSHIPS
Idaho Energy Complex - AEHI will be at the forefront of this opportunity as the first publicly traded independent nuclear generating company in the U.S. and will easily outperform large nuclear and fossil type utilities with their inherent bureaucracy.
Green World Water, working in partnership with China National Nuclear Corp, (CNNC) in Beijing, China, is producing the world's first commercially available nuclear seawater desalination system. It creates large amounts of clean water and power at the same time. CCNE employes about 200,000 people in China. http://www.nti.org/db/china/cnnc.htm
"Nuclear energy might be a more efficient method of removing contamination and saltwater because it can do so efficiently and on a large-scale basis without adding to concerns over global warming." Ken Silverstein, EnergyBiz Insider
"Nuclear energy seawater desalination has a tremendous potential for the production of freshwater." Meenakshi Jain, CDM &; Environmental Services and Positive Climate Care, India.
"The development of advanced reactors providing heat for hydrogen production and large amount of waste heat will catalyze the large-scale seawater desalination for economic production of fresh water."
- Dr. B.M. Misra, Co-editor of International Journal of Nuclear Desalination, former head of BARC
Our Nigerian office - Green World Water Africa, recently began production. (www.greenworld-h2o.com)
Energy Neutral focuses on renewable power - using wind and solar power to build homes and commercial buildings that produce more power than they consume. (www.energyneutralinc.com).
Hyperion Power New Energy - the partnership involves a joint venture with Hyperion Power Generation in China to produce and market a mini nuclear reactor about the size of a refrigerator capable of producing 25 megawatts of power. Save and stackable, it can be used practically anywhere including ocean liners, military bases, small towns and even desalination systems.
Website : http://www.alternateenergyholdings.com/
Stock Transfer Company: Interwest Transfer Company, Inc. Transfer Company, Inc
Please call 540-586-9143 or 208-939-9311
or e-mail invest@alternateenergyholdings.com for additional information.
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