The former chief financial officer of SolarMax Technology in Los Angeles, Michael McCaffrey, has asserted that his former employer fired him for revealing the company's "fraud and financial improprieties" in connection with its raising of some $60 million in EB-5 funds.
According to a press release from McCaffrey's attorney:
McCaffrey discovered that SolarMax, by engaging in a series of Enron-like "round trip" transactions with sham middleman entities, reported approximately $50,000,000 in phantom revenue on its 2011 and 2012 audited financial statements. In an effort to create a false impression of stronger financial performances and thus to attract investment capital, the suit alleges that SolarMax disseminated these artificially inflated figures to EB-5 investors (mostly in Taiwan and China).
CFO Sues Solar Company, Alleges Financial Improprieties, Fraud, and Mis-use of EB-5 Foreign Investment Funds :
The former Chief Financial Officer of SolarMax Technology, Inc. a renewable energy conglomerate located in Riverside, CA has filed a lawsuit against the company and several of its directors and executive management team, including CEO David Hsu, Executive Vice President Ching Liu, and CFO Simon Yuan.
Litigation Case :