Wind energy company accused of fraud

A wind energy company is accused of obtaining $2 million in federal stimulus funds fraudulently.

News reports said that the Travis County District Attorney’s office charged Charlie Malouff Jr., founder of CM Energies, along with a former comptroller’s office staffer and grant administrator, with securing execution of a document by deception, a felony for which they can face up to life in prison.

Court filings reportedly said that the pair conspired to illegally obtain up to $2 million in American Recovery and Reinvestment Act money by overselling the company’s ability to deliver wind turbines for a project in the city of Jonestown, Texas. The former staffer allegedly provided information to Malouff about how to fill out the grant application, and Malouff made a series of embellished claims about the ability of the company to manufacture and install the wind turbines.

CM Energies said in a May 6, 2011 KXAN-TV news report that three out of 18 turbines at the Jonestown Wind Energy Project were officially up and running. The turbines were supposed to help power the city’s municipal buildings. The project has not been completed.

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