FOLLOW US

On September 24 to 26 Joaquin Altenberg finally appeared in Delaware Chancery Court which was proceeded by Vice Chancellor J. Travis Laster. The trial progressed on the issues in the case, but also included testimony about numerous withdrawals by law firms Richards, Layton & Finger and Finger & Slanina due to lack of payment by Altenberg.

When asked about his past attorneys, Altenberg described both prior counsel of performing sloppy work, testifying that they did not listen to him. Altenberg was represented David Wilks of Wilks, Lukoff & Bracegirdle. Evidence was presented that it has been a rough few years for Altenberg after receiving investment funds related to VERT Solar Finance, which is now in bankruptcy.

In addition to being sued in Delaware Chancery Court by Plaintiffs HOMF II Investment Corp. Altenberg has been involved in litigation of disputes with numerous parties who have conducted business with the now defunct solar company VERT Solar Finance. Attorney for the Plaintiffs, Sid Liebesman of Fox Rothschild, drilled Altenberg on many matters related to the dispute, one exchange seemed especially critical:

Q--Your relationship with the investment members ended up in this litigation; true?

A--Yes.

Q--Your relationship with Blue Sky Utility also ended up in arbitration; right?

A--Yes.

Q--And your relationship with Sunrise Energy ended up in arbitration; right?

A--I believe we settled before we got there, but yes, it would have gone that way.

Q--Do you have an understanding that there was an arbitration claim filed by Sunrise?

A--I don't recall that. But I'll take your word for it.

Q--VERT Solar Finance is in bankruptcy?

A--Yes, sir.

Q--The Fund has no money?

A--Yes.

Q--The investment members got nothing?

A--Yes.

Q--VERT Solar Finance took about 2.4 million [of $6.8mm total} from the Fund in fees?

A--Yes.

Q--And then VERT Solar Finance received another $400,000 fee directly from Boviet?

A--That sounds right.

Q--For a project that was funded by the Fund?

A--Yes.

Q--So the amount of the fees taken directly out of the Fund at 2.4 million is about 35 percent of the total amount the investment members paid into the Fund and entrusted you with; right?

A--Yes.

Q--Doesn't sound right, does it?

A--It sounds right to me.

The alleged misappropriation of “construction management fees” was a feature of the trial. Testimony was given that Altenberg has been sued or had conflicts with many of the businesses VERT Solar Finance conducted business with. In addition, Altenberg was questioned concerning allegations of misappropriating funds and putting the solar projects in the name of his company and not in the name of the fund. Vice Chancellor Laster questioned Altenberg directly as to how he collected these fees and whether there was a practice or custom of collecting fees in this manner: