Business Crimes Hotline

CALIFORNIA

Air Pollution Credit Broker Arrested for Fraud

Anne Masters Sholtz, the owner of a California company called Sholtz & Associates that brokered air pollution credits, was arrested on seven counts of wire fraud in connection with alleged misrepresentations made to a purchaser of air pollution credits. The air pollution credit trading program is regulated as part of the South Coast Air Quality Management District. According to the criminal complaint filed against the defendant, Sholtz allegedly induced a company called AG Clean Air, a New York-based company that trades in pollution credits, to purchase $12.5 million of the tradable credits by representing that a Mobil refinery in Southern California was willing to purchase the credits for $17.5 million. Sholtz allegedly sent AG Clean Air a payment well short of the $17.5 million purchase price, and then allegedly fabricated faxes and e-mails purporting to show that Mobil was still in negotiations to purchase the credits, and arranged for associates to pretend to be Mobil employees. If convicted on all charges, the defendant faces a sentence of up to 35 years in prison.

California Company Sentenced for Violation of Export Administration Regulations

Berkeley Nucleonics Corporation (BNC) has pleaded guilty to willfully violating a license under the International Emergency Economic Powers and has been sentenced to 5 years' probation and ordered to pay a $300,000 criminal fine for shipping a pulse generator to India. The U.S. Export Administration Regulations (EAR) regulate the export of certain technology to certain countries in the interest of national security, nonproliferation, and other goals. The EAR prohibits the export of pulse generators, which are used to calibrate radar and nuclear instruments, without authorization from the U.S. Department of Commerce. According to the plea agreement filed with the Court, BNC shipped a pulse generator to the Bhaba Atomic Research Center in India, knowing that shipments of such devices are controlled by the EAR, without applying for or obtaining an export license. The prosecution was the result of an investigation by the United States Department of Commerce.

CALIFORNIA

Air Pollution Credit Broker Arrested for Fraud

Anne Masters Sholtz, the owner of a California company called Sholtz & Associates that brokered air pollution credits, was arrested on seven counts of wire fraud in connection with alleged misrepresentations made to a purchaser of air pollution credits. The air pollution credit trading program is regulated as part of the South Coast Air Quality Management District. According to the criminal complaint filed against the defendant, Sholtz allegedly induced a company called AG Clean Air, a New York-based company that trades in pollution credits, to purchase $12.5 million of the tradable credits by representing that a Mobil refinery in Southern California was willing to purchase the credits for $17.5 million. Sholtz allegedly sent AG Clean Air a payment well short of the $17.5 million purchase price, and then allegedly fabricated faxes and e-mails purporting to show that Mobil was still in negotiations to purchase the credits, and arranged for associates to pretend to be Mobil employees. If convicted on all charges, the defendant faces a sentence of up to 35 years in prison.

California Company Sentenced for Violation of Export Administration Regulations

Berkeley Nucleonics Corporation (BNC) has pleaded guilty to willfully violating a license under the International Emergency Economic Powers and has been sentenced to 5 years' probation and ordered to pay a $300,000 criminal fine for shipping a pulse generator to India. The U.S. Export Administration Regulations (EAR) regulate the export of certain technology to certain countries in the interest of national security, nonproliferation, and other goals. The EAR prohibits the export of pulse generators, which are used to calibrate radar and nuclear instruments, without authorization from the U.S. Department of Commerce. According to the plea agreement filed with the Court, BNC shipped a pulse generator to the Bhaba Atomic Research Center in India, knowing that shipments of such devices are controlled by the EAR, without applying for or obtaining an export license. The prosecution was the result of an investigation by the United States Department of Commerce.