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Tucson Solar Company Owner Indicted on Multiple Fraud Charges

By on August 29, 2024 0 66Views

The owner of a Tucson-based solar company has been indicted on several federal charges, including bank fraud, wire fraud, and mail fraud. On August 14, 2024, a federal grand jury in Tucson returned an 11-count indictment against Daniel Jarrett Ridlinghafer, 37, of Marana, Arizona. Ridlinghafer, who owned and operated Psalm 112 LLC, doing business as Tucson Solar Pros, is accused of orchestrating a scheme to defraud at least 25 homeowners and two federally insured credit unions.

According to the indictment, Ridlinghafer and his employees engaged in fraudulent activity beginning in January 2021 and continuing through July 7, 2022. The indictment details how they allegedly signed fake contracts with homeowners for the purchase and installation of solar power electrical systems on their properties. Victim homeowners, believing they were working with a legitimate business, paid significant sums for solar systems that were never delivered or installed.

How the Fraud Was Allegedly Conducted

After securing contracts with the victim homeowners, Ridlinghafer would arrange financing through federally insured credit unions, which then provided loans to cover the installation costs. However, the indictment alleges that after receiving payments from these credit unions and homeowners, Ridlinghafer abandoned the projects. The homeowners were left with no solar installations or any of the equipment they had paid for, resulting in an alleged loss of approximately $695,000.

The scheme, as outlined in court documents, did not only affect private homeowners but also posed a severe financial threat to the credit unions that funded the loans for these non-existent solar projects. As a result, both the homeowners and credit unions are alleged to have been defrauded out of hundreds of thousands of dollars, with no solar equipment or installations to show for their investments.

Serious Legal Consequences

If convicted, Ridlinghafer faces severe penalties. Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The charges of mail fraud carry a maximum penalty of 20 years in prison and a $250,000 fine, while wire fraud also holds a maximum penalty of 20 years in prison and a $250,000 fine.

The U.S. Attorney’s Office for the District of Arizona, which is handling the prosecution, emphasized that an indictment is merely an allegation and not proof of guilt. “An indictment is simply a method by which a person is charged with criminal activity,” stated the U.S. Attorney’s Office. “It raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.”

Ongoing Investigation Led by the FBI

The Federal Bureau of Investigation (FBI) is leading the investigation into the case, aiming to gather further evidence and establish a clearer understanding of the full scope of Ridlinghafer’s alleged activities. The investigation has brought to light the complexities of fraud in the renewable energy sector, where federal incentives and financial partnerships can sometimes be exploited.

The FBI has encouraged anyone who believes they may have been a victim of fraudulent activities by Tucson Solar Pros or Daniel Ridlinghafer to come forward. “We are committed to uncovering the full extent of this fraud and ensuring that those responsible are held accountable,” an FBI spokesperson said.

A Broader Concern for Solar Energy Consumers

This case has also highlighted concerns within the growing solar industry. As solar power becomes an increasingly popular choice for homeowners looking to reduce their energy bills and environmental footprint, the public must remain vigilant against fraudulent schemes that undermine consumer confidence in renewable energy solutions.

Consumer advocacy groups in Arizona have taken note of the indictment, urging potential solar customers to thoroughly vet companies before signing any contracts or agreements. “Consumers should be aware of potential scams and do their due diligence when choosing a solar provider,” said a representative from an Arizona consumer rights organization. “Check for licenses, read reviews, and verify the legitimacy of the business.”