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Companies in Utah Solar Fraud Case Filing for Bankruptcy

Submitted by jhartgen@abi.org on

A massive Utah solar fraud case in federal court took a sudden twist on Monday when two companies central in the case filed for bankruptcy or announced their intent to file, the Utah Desert News reported. The bankruptcy claim by RaPower3 is meant to delay, or even possibly derail, the U.S. Department of Justice's motion to appoint a receiver in the case to take over those companies and also to freeze millions in assets. International Automated Systems also announced its intent to file, according to court records, but a full document was not available. That money, the federal government argued, represents unjust enrichment on the part of the companies and the men in charge of them, Neldon Johnson and Gregory Shepard.