Jeff and Paulette Carpoff lived a luxurious life that included NASCAR sponsorships and a car collection of 150 vehicles
In December 2018, the FBI raided the offices of DC Solar as well as the California home of the Carpoff’s. In January 2019, the company filed for banrupcy.
It caused the assets of the company to be sold at auction as they closed their doors.
NASCAR was high affected by the charges. DC Solar was a heavy backer of the sport between race entitlement and team sponsorships. The arrest led to the abrupt closing of Chip Ganassi Racing’s entire NASCAR Xfinity Series team.
DC Solar rented solar generators that powered lighting at sporting events and much more. It started as a legitimate business.
DC Solar generated $2.5 billion in investment transactions between 2011 and 2018. It came a $1 billion cost to investors.
DC Solar: Guilt Plea
Now, Jeff and Paulette Carpoff have entered plea agreements following charges of running a $1 billion Ponzi scheme.
The initial sentence is set at 30 years in prison for Jeff Carpoff. Additionally, 15 years have been set for Paulette Carpoff. Each of those terms are prior to any co-operation.
The Ponzi scheme was in operation from March 2011 to December 2018 per court documents.
DC Solar rented solar powered units across the country. The family allegedly significantly over valued their company to attract new investors.
Upon the investigation, the FBI discovered many of the solar units that DC Solar claimed were rented, were actually not in use.
Funds collected from new investors were used to pay off old investors and high-profile investors in the company.
Four others have also pleaded guilty in connection with the scheme. A possible fifth is scheduled for court on February 11th.
Where did the rest of the funding go?
The Carpoff’s lived a very luxurious life.
Multiple NASCAR sponsorships from teams to races were signed. The family had a car collection of 150 vehicles. They also owned real estate in Lake Tahoe, Las Vegas, Mexico and The Caribbean Islands.
Beyond NASCAR, they also purchased the Martinez Clippers baseball team. They are a minor league team in California.
They did not own any football operations but they did occupy a suite at an NFL stadium.
$120 million in assets have been forfeited. That includes a stake in Whetstone Wine Cellars which is located in Napa’s wine region.
With the plea agreements in place, the Carpoffs will pay restitution to their victims. The funds to be returned will total between $800 million and $1.6 billion.