According to U.S. Attorney Talbert, Karmann knowingly joined the Ponzi scheme based on the fact that he supervise the hidden circular transfer of funds from 2016 to 2018. As CFO, he prepared and provided false financial statements and instructed his subordinates at the DC Solar’s accounting department to make up location resports when responding to customers’ request. The company obtained more than $600 million in investors’ funds as a result of their scheme.
In November 2021, Carpoff received a sentence of 30 years in prison for conspiracy to committ wire fraud and money laundering. He was also ordered to pay $790.6 million in restitution.
His wife, Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. She is set to receive her punishment on May 10, 2022.
Joseph Bayliss, another co-conspirator was sentenced to three years in prison for securities fraud and conspiracy related to the DC Solar Ponzi sche. He was ordered to pay $481.3 million in restitution.
