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(USGovernment-News.Com, July 18, 2013 ) Albuquerque, NM -- Excelsior seller of wind energy equipment, Renewable Energy SD, is being sued for fraud by the attorney general's office of Minnesota. Now, the company is filing for Chapter 7 bankruptcy.
On Friday, the company filed for liquidation in the U.S. Bankruptcy Court. Renewable Energy listed a $15.9 million debt with $6.2 million in assets.
Hennepin County District Court originally filed the attorney general's lawsuit, and has alleged that the company enacted fraudulent business practices. According to the suit the owner Shawn Dooling, sold customers faulty wind turbines he created from federal stimulus money that was aimed to boost the economy following the recession.
The company then apparently failed to deliver many of the turbines altogether, while others were erected poorly and failed to perform at all. There are 15 civil lawsuits that have been filed separately against the company.
Renewable Energy SD was forced to stop selling the generators in Minnesota following the attorney general's obtaining of injunctions. The suit is still pending while a judge looks over the case.
A spokesman for the Renewable Energy stated the lawsuit forced the company into Chapter 7 filing.
“The bankruptcy filing was unavoidable because the company was out of business and had no way to fund its defense in multiple court cases,” Renewable Energy attorney Michael McGrath, of Ravich Meyer in Minneapolis, said in an interview Monday.
Renewable Energy customers are still attempting to parse out just how much they deserve in compensation for the accused fraud. One customer admitted to be taken aback by the whole experience with the energy company. “I’ve never run into a scam this big, and I hope never to run into another one like it,” said Gerald Crowell, a farmer near Windom, Minn.
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