Alternate Energy Holdings (fka AEHI)

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AEHI Case Outlined in Law 360 Report
BOISE, IDAHO - April 13, 2012: Alternate Energy Holdings, Inc. (OTC:AEHI.PK; www.aehipower.com) has been a focus of fraud allegations from the San Francisco office of the U.S. Securities and Exchange Commission since December 2010.

Since that time, the company has received, and continues to receive numerous calls from investors and interested parties alike as to the relevance and truthfulness of the allegations. The company maintains its innocence while continuing to surpass a variety of hurdles, which include local approval to build a nuclear power plant in Idaho, contracting of a key engineering firm to accomplish an environmental study for the federal COL application, and most recently a contract related to the funding of the proposed Idaho project.

However, many media outlets have chosen instead to write about the SEC controversy, which often appears very one sided, until today.

Law 360 just released the article below, which describes what company officials believe is a much more accurate view of the issue at hand. You may also view the article on the Law 360 website at http://www.law360.com.
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Alternate Energy Claims SEC Wants It To Go Bankrupt
By Erica Teichert

Law360, Washington (April 12, 2012, 12:23 PM ET) -- Alternative Energy Holdings Inc. on Wednesday shot back at the U.S. Securities and Exchange Commission's allegations it fraudulently raised money for a $10 billion nuclear power plant, calling the agency's bid to subpoena its business partners an attempt to push it into insolvency.

AEHI says the SEC's subpoenas to Vital Funds Inc., Corporate Strategies LLC, Southwest Escrow Corp. and GT Securities Inc. fall outside the scope of the SEC's complaint that asserts AEHI fraudulently raised millions of dollars for the plant.

The agency alleges the funding - garnered by investors in Idaho and throughout the U.S. and Asia - was the result of improperly manipulating the company's stock price through misleading public statements, and that the secret profits were put to personal use by AEHI CEO Donald L. Gillispie and senior vice president Jennifer Ransom.

But AEHI says the four companies being subpoenaed have no part in the alleged fraudulent funding, and that they have been part of subsequent financial transactions, including one multistage transaction currently pending. If the subpoenas go through, AEHI contends that it would lose the opportunity to stay solvent, according to a memorandum.

"AEHI's advisor in the transaction, GT Securities, a registered broker-dealer, has made it clear to AEHI that, should the subpoenas not be quashed, there is a very strong likelihood that the deal will not be consummated and the opportunity for critical funding lost," AEHI's memorandum said.

The subpoenas to Vital Funds and GT Securities concern a financial transaction in the works that will give AEHI more than €11 million in funding within 30 days and more than €45 million over the next 200 days, according to the memorandum.

The GT Securities subpoena and the SEC's subpoenas to Corporate Strategies and Southwest Escrow seek information on a December transaction that never came to fruition, AEHI says.

But the company claims the subpoenas are further evidence that the SEC wants to eliminate AEHI from the market rather than focus on the allegations at hand.

"They seem instead targeted for the purpose of destroying defendant AEHI's ability to survive, which seems to have been plaintiff's overriding objective throughout this litigation," the memorandum said.

When AEHI went public in September 2006, Gillispie paid promoters to persuade individual investors to buy restricted stock, and encouraged promoters to enter sale orders at the end of certain trading days in order to boost the company's stock price and volume to artificially high levels, the SEC alleges.

In addition, the company issued frequent press releases - at least 87 in 2010 alone - touting its stock, the complaint asserts.

The company also made multiple misrepresentations including claims that its executives had such confidence in AEHI that they had not sold a single share, the suit says. But records obtained by the SEC revealed that Gillispie and Ransom secretly unloaded extensive stock holdings and funneled the money back to Gillispie instead, the complaint contends.

A representative for the SEC declined to comment Thursday.

AEHI is represented by Todd Reuter, Charles R. Mills, Barry M. Hartman, Nicholas G. Terris, Andrew R. McFall and Christine Jochim Boote of K&L Gates LLP.

The case is U.S. Securities and Exchange Commission v. Alternate Energy Holdings Inc. et al., case number 1:10-cv-00621, in the U.S. District Court for the District of Idaho.

--Editing by Eydie Cubarrubia.
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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, 2010. 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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