Altenberg’s business plan included solar projects for commercial and smaller scale industrial users in what he called “the middle market.” He proposed a complex financing scheme for these projects that included a tax-equity investment, traditional debt financing, and traditional equity financing.
During his solicitation of funds, Altenberg represented that Solar Finance was “a leading tax equity expert.” He also represented that he had tax equity relationships with “industry players” including Google, JP Morgan, US Bank, MetLife, and Bank of America — relationships he did not actually have.
Altenberg also represented that he had similar relationships to cover the debt financing component of his financing scheme. Again, those relationships were not as Altenberg represented them. Jefferson and Murphy took into account the pre-existing relationships Altenberg told them of in their decision to invest.
Altenberg needed investments from Jefferson and Murphy to cover the equity financing and get his business model off the ground. And it was supposed to be a short-term, high return investment that took advantage of “revolving equity.”
