AEHI Truth

An unauthorized collection of the records of Alternate Energy Holdings, inc., its principals and subsidiaries, and their antics, trials, and tribulations

Please, Please, Please, Everyone! Just Calm Down! And Stop Whining!

Thursday, December 4, 2014

Don Gillispie Files Pro Se Motion to Stay, Lists Colorado Address

Today Don Gillispie filed a "Request to Stay" the Final Judgment until the criminal case is completed, so that, according to Don, he can "protect my 5th Amendment Rights."
Also of note is his new address in Colorado Springs: that of Thorne Davis and "Davis Company Commercial Real Estate, Inc."  At one time, Gillispie and AEHI were going to try to put together a "Colorado Energy Park" which, as usual, fell apart.  Now Don appears to be couch surfing with his old buddy until his trial in January.

Update: Judge Sets Aside Order on Final Judgement- Until Briefings are Complete.

Full docket text for document 304:
DOCKET ORDER re [303] Order on Motion for Entry of Judgment, On December 3, 2014, the Court entered an Order granting the SECs Motion for Entry of Final Judgment in this action. (Dkt. 303.) That Order was entered prematurely in light of the parties October 7, 2014 Joint Status Report. (Dkt. 297.) Accordingly, the Court will SET ASIDE its Order of Final Judgment in this action and will reconsider the same after the briefing is completed in accordance with the schedule set forth in the Joint Status Report. Signed by Judge Edward J. Lodge. (caused to be mailed to non Registered Participants at the addresses listed on the Notice of Electronic Filing (NEF) by (lat)

That Status Report says that Defendants have until December 30 to file responses to the SECs Motion for Final Judgment.  So, the Final Judgment is now due out sometime in January- also when the Defendants begin their jury trial in the criminal case.

More to follow….

Wednesday, December 3, 2014

Federal Court Order Granting SEC Final Judgment Motion against Don Gillispie and Alternate Energy Holdings: Permanent Injunction, Disgorgement, and Civil Penalties!

U.S. District Judge Ed Lodge today issued a 13-page order granting the Securities and Exchange Commission's Motion for Final Judgment: (See also the accompanying declaration and 20-page Memorandum in Support of the motion)

Highlights of the most excellent document: (emphasis added)

"The Court … agrees that a permanent injunction is appropriate in this case as the Defendants are likely to commit future securities law violations."

"The Defendants' violations of the securities laws included repeated and multiple acts spanning several years.  Their activities included providing false, misleading, and unaccurate material information in several public announcements issued in connection to securities offerings."

"The Defendants were evasive in their conduct even after this action was filed showing little sincerity or recognition of the wrongfulness of the conduct." (all on page 3 of the Order)

"The Court finds disgorgment is warranted in this case as it will deprive the wrongdoers of unjust enrichment from the ill-gotten gains and serve to deter others from violating securities laws by making violations unprofitable." (p. 5)

"The SEC asks the Court to impose the highest level penalty, third tier, arguing the Defendants' conduct in this case involved fraud or deceit…"   "Having reviewed the record in this matter, the Court finds the securities violations are such that the Defendants are subject to third tier penalties.  The Defendants actions here involved fraud, deceit, manipulation, or deliberate and/or reckless disregard of a regulatory requirement.  The Defendants engaged in a scheme of illegal offerings of securities to numerous public investors using misleading information."

"The Court finds a penalty of $75,000.00 is appropriate.  Defendant Gillispie was centrally involved in the recurrent securities violations which this Court has already concluded were done with the requisite degree of scienter.  Additionally, Defendant Gillispie's conduct suggests little recognition of the wrongful nature of his conduct and/or sincerity of any assurances he may make against future violations. "

"4.  Defendants AEHI and Donald L. Gillispie, and each of them, are jointly and severally liable for disgorging ill-gotten gains of $14,567,030 together with prejudgment interest thereon in the amount of $245,036, for a total disgorgment of $14,812,066.  Defendants shall make payment of the total amount within thirty (30) days of the date of this order."

5.  Defendant Donald L. Gillispie shall pay a civil penalty in the amount of $75,000 … within thirty business days after entry of this Final Judgment…"

6.  Defendant AEHI shall pay a civil penalty in the amount of $300,000

7.  Defendant Donald L. Gillispie is permanently prohibited as of the date of entry of this Order from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exhcange Act…

8.  Defendand Donald L. Gilispie is permanently barred … from participating in an offering of penny stock….

Four years ago, we presented a graph of selected word occurrences in the SEC Complaint.
Here is an updated graph of certain words in the Final Judgment:

Next up:  how will they pay?  And more importantly,

Tuesday, November 18, 2014

Yeah, If You Could Just Come With Us to The Federal Courthouse, That'd Be Great: Don Gillispie's Arrest Warrant

So, the charges were enough that the U.S. Marshals were "COMMANDED to arrest DONALD L. GILLISPIE and bring forthwith to the nearest magistrate to answer INDICTMENT…."

That there's a Federal Arrest Warrant, just like in the old west!

Sunday, November 16, 2014

The Weight of Lies, The Truth Don't Stop: Ballads for Don Gillispie and AEHI

A musical interlude, inspired by Don Gillispie and Alternate Energy Holdings.

The Avett Brothers' "The Weight of Lies" and Dr. Dog's "The Truth Don't Stop"

Disappear from your hometown
Go and find the people that you know
Show them all your good parts
Leave town when bad ones start to show
Go and wed a woman
A pretty girl that you've never met
Make sure she knows you love her well
But don't make any other promises

The weight of lies will bring you down
And follow you to every town
Cause nothing happens here that doesn't happen there
So when you run, make sure you run
To something and not away from
Cause lies don't need an aeroplane to chase you anywhere

I once heard the worst thing 
A man could do is draw a hungry crowd
Tell everyone his name with pride, and confidence
But leaving out his doubt
I'm not sure I bought those words
When I was young I knew most everything
These words have never met so much to anyone
As they now mean to me

The weight of lies will bring you down
And follow you to every town
Cause nothing happens here that doesn't happen there
So when you run make sure you run
To something and not away from
Cause lies don't need an aeroplane to chase you down

The truth don’t stop
It makes you move
Round and round
Like the moon
It’s coming down
The truth don’t stop
It’s really coming
The truth don’t stop
It’s falling hard
The truth don’t stop
Another day
The truth don’t stop
Thunder and lightning
The devil’s done
I paid my dues
But he just won’t quit
He don’t like to lose
It’s coming down
The truth don’t stop
It’s really coming
The truth don’t stop
It’s falling hard
The truth don’t stop
Another day
The truth don’t stop
Thunder and lightning
Let the rain fall
Let the rain fall
Let the rain fall
Let the rain fall
Let the rain fall

Saturday, November 15, 2014

News Roundup for November 15

In the comments on the indictment post, an Alert Reader posted a link to this article, a detailed summary of the case and recent indictments.  It also includes video of the Payette County Commissioners and AEHI's current CEO, Pete Honeysett.

Other News Coverage:

Idaho Statesman

Boise Weekly

Idaho State Journal

Eye On Boise

Idaho Press Tribune

Birds of a Feather Roundup: Sparrows, Labradors, and Wong: Wong Again- New Transcript from 2009 AEHI Hearing.

Here are all the past Birds-of-a Feather articles from AEHI Truth, starting with SEC-sanctioned Source Capital principal and ending up with the letter of support from, among others, Senator Larry Craig:

The Birds That Flock Together  (2010)

Birds of A Feather, Part 2 (2010)

Birds of a Feather, Part III:  Meet ACHD Director Bruce Wong- AEHI Stockholder, Cheerleader, and Former "Military Consultant"  (Dec 2010)

Birds of a Feather, Part IV: Idaho Congressman Raul Labrador Received $2,625 From AEHI CEO Don Gillispie in 2010 Primary  (2011)

Birds of a Feather, Part V:  AEHI Director Duo Flew the Coop  (2011)

Birds of a Feather Yet Again:  Letters of Reference for Indicted Don (2014)

While Don Gillispie and Jennie Ransom were (according to the SEC, FBI, and Department of Justice) perpetuating this fraud upon investors and local governments, they had assistance from many paid shills, among them Martin Johncox and Bruce Wong, now director of the Ada County Highway District.

On April 22, 2009, AEHI presented a rezone request to the Elmore County Commissioners.  Back when the Mountain Home News was still a news source, they did this article on that hearing.
In the transcript below, Bruce Wong demonstrates his sharply honed skills of character discernment by telling all of us what a great guy Don Gillispie is.  Wong took the time to explain the importance of credibility and credentials to the commissioners before they took up the mundane details of the rezone.  Here is Mr. Wong's glorious introduction of Don Gillispie, in which he makes a few seemingly outlandish claims about Don's resume:

MR. WONG:  Good Evening, Commissioners.  My name is Bruce Wong, W-O-N-G.  And it's my pleasure to provide you a brief introduction to Mr. Don Gillispie and a short summary of his impressive credentials and accomplishments in the nuclear energy business.  To begin--
MODERATOR:  Can people hear?
MR. WONG:  Let me start again.  It's still a good evening to you Commissioners.  And, again, my name is Bruce Wong, and it is my pleasure to provide you a brief introduction to Mr. Don Gillispie and a short summary of his impressive credentials in a nuclear energy business.
To begin, Mr. Gillispie is the chairman and CEO of the Alternate Energy Holdings, Inc.
MODERATOR:  Mr. Wong, if I could, is this about zoning?
MR. WONG:  Yes.
MODERATOR:  I mean, it's your time, but I just wanted to let you know that--
MR. WONG:  I think it's important on this request to establish the credentials of the individual that is making the request for you.
MR. GILLISPIE:  Gentlemen, I really think that -- and ladies, excuse me.  I think it's important because if you're going to rezone this property, I believe it's important to know who you're turning the rezone over to and why.  There's a credibility here.  There's been a lot of misinformation, produced by people who oppose us, about us, and I really think it's important to set the record straight.  And we'll take a couple of minutes to do that with Mr. Wong.
MODERATOR:  Okay.  It's just your time, that's all.
MR. WONG:  Thank you, sir.  I appreciate the clarification.
Anyway, as I continue on, handpicked by Admiral Rickover, a father of this country's nuclear Navy, he began his career in nuclear energy management and production as a U.S. naval officer, graduating from the Navy's nuclear power school. Assigned as a nuclear plant operator, Mr. Gillispie was mentored in this critical zero error tolerance duty by the Navy's first nuclear submarine captain, Admiral Dennis Wilkinson.
After his distinguished Navy nuclear submarine service, Mr. Gillispie started working in the commercial nuclear energy business.
During his exemplary career, Mr. Gillispie has personally overseen the permitting and construction of 12 nuclear reactors and directly assisted with six more.  Moreover, he has managed and run as a senior officer seven U.S. nuclear reactors.  As such, Mr. Gillispie has gained wide recognition for his outstanding safety and efficiency ratings or his charge with reviving dormant nuclear reactors.
Transforming the nuclear energy business, Mr. Gillispie has worked for Westinghouse, Duke Energy, and the Tennessee Valley Authority, and has in-depth experience with nuclear-related start-ups to include the INPO in Atlanta, Grace Glens Consulting in Virginia, and NMC in Hudson, Wisconsin.  Of note:  Forbes Magazine awarded NMC best in class renovation in 2001.
As a senior nuclear consultant, Mr. Gillispie has succesfully advised all 104 U.S. and many international nuclear energy staffs on improving safety and efficiency, and subsequently, has received numerous citations and awards for outstanding service, safety, and operating efficiency.  A recognized expert, he has spoken in many international forums of nuclear power, including the international Atomic Energy Agency in Vienna and the U.S. nuclear CEO conference in Atlanta.
Mr. Gillispie has earned a Bachelor of Science degree in electrical engineering from Princeton University and is a graduate of the Senior Executive Program at MIT Sloan School of Management.
Commissioners, Mr. Don Gillispie.
MR. GILLISPIE:  Thank you, Bruce.

Yes, Bruce.  Thank you for showing us how important credibility is and what a great judge of character you are.

Finally, The Moment We've All Been Waiting For: Indictments! Fourteen Counts! Federal Jury Trial January 13!

Just as the Dude was finishing up a three1-beer Friday lunch, he looked down at his phone to see multiple messages from friends2 alerting him to this long-overdue news:  Former AEHI CEO Don Gillispie and Former Key Senior Executive Jennifer Ransom were indicted (indicted!) on multiple federal criminal charges!  Whoa!
Finally.   Frankly, the Dude was wondering just what the hell someone would have to do to get Federal charges filed against them.  Besides speeding, that is.
Today, the Dude was able to review the full 22-page indictment (indictment!), which lists fourteen counts, including securities fraud, wire fraud, conspiracy to defraud the U.S., subscribing a false tax return, aiding and assisting in the preparation of a false tax return, false statements, and failure to signal a lane change3.

Apparently, Don's arraignment (arraignment!) was at 2:30 on Friday the 14th, but no one4 had enough advance notice to be able to get pics of the perp walk (if there even was one).  Jennifer Ransom's arraignment is November 25, and they are both scheduled for trial on January 13.  Apparently poor little Don whined about not having enough money (!) and got himself a public defender to boot.  Here is a screen shot of the docket report from PACER as of this morning:

Of note is the fact that the Government thought Gillispie enough of a flight risk to file a motion for detention (with an exhibit showing he had plans to hightail it to Taiwan) until the January trial.  Apparently, the defense was able to persuade the judge and Don got out- for now.   (If you see a Maserati or Ford Compensator Pickup lurking in the cell phone lane at the Boise Airport, call the FBI)

Documents:  Indictment (!)  Motion for Detention   Exhibit to Motion for Detention

1.  Estimated quantity.  May include whiskey. Details are sketchy after the news broke.
2.  Yes, He has some.
3.  The lane-signal charge may be artistic license.
4.  Of the Dude's few friends.

Birds of a Feather Yet Again: Letters of Reference for Poor Little Don Gillispie, Indicted Former CEO of Alternate Energy Holdings

Some goofball named Tom Doss really thinks that AEHI and Don Gillispie are being picked on, and none of this would have happened to him if those pesky anti-nuke activists hadn't gotten involved.  He's so passionate about it, he even wrote a followup article.

Here's a news flash for you, Tom:  none of this would have happened if Don and company would have simply followed the law and done what they were required to do- like file timely reports, truthful reports, and maybe even tell the truth once in a while in press releases.  Oh, and maybe spend investors' money on actually developing an actual nuclear plant instead of on luxury travel, cruises, jewelry, a Maserati, and personal housing.

It seems that Tom rounded up some twenty-five letters of reference for embattled former CEO Don Gillispie, written around January 2012.  Some of the authors are very interesting: former Senator Larry Craig and a couple of treasure valley mayors, to mention a few.

Here is what the intro page says about the letters:

"The following letters represent more than 25 people from a variety of walks of life; people who are
willing to stand as references for Don Gillispie, current [now former] CEO of Alternate Energy Holdings, Inc.  They are attorneys, mayors, a former senator, doctors, college professors, ministers, a planning and zoning commissioner, nuclear experts and colleagues, an MIT graduate, a variety of national and international business professionals and philanthropists.  These are community leaders, advisors, mentors and professionals. Their long-time experience has helped to hone their own abilities to discern the character of people they meet and with whom they work.  They have several things in common:  They have all known Gillispie for many years. They know him to be an honest and trustworthy person of high regard. They believe in his ability to accomplish projects,  especially those related to the nuclear industry. Some even speak from lengthy experience as long-time nuclear power employees and executives.  Many of the letters also vouch for Gillispie’s integrity; referencing him as a man who should be trusted and a man who is unwilling to break the law in order to accomplish anything."

Read the letters here:

Friday, July 11, 2014

AEHI Attorney Roth Withdraws for Non-payment; On His Own, Gillispie Files WhinyPants "Appeal" to Judge Lodge

According to PACER filings, on July 8, 2014, AEHI and Gillispie's attorney Richard Roth filed a motion to withdraw as counsel for Gillispie's non-payment of attorney fees.
On July 10, 2014,  Don Gillispie filed his own whinypants "appeal" letter.
All Don does is repeat his whining about the mean old SEC picking on a supposedly upstanding citizen, and adds a new claim that "the administration" is targeting a "conservative."
Judge Lodge ruled on the motion to withdraw, admonishing Gillispie and his "Energy Executive Consulting, LLC" that they have 21 days to obtain counsel or face a default judgment.

See the docs here:
Don's Latest WhinyPants Letter:

Roth's Motion To Withdraw:

Lodge's Ruling on the Motion to Withdraw:

Monday, May 20, 2013

AEHI Founder and Former CEO Don Gillispie Dumps All 41,370,500 Shares For A Quarter Cent Apiece.

On May 17, 2013, Alternate Energy Holdings , Inc.  Founder and Former CEO Don Gillispie dumped all his shares in the "company" he used to run, according to this SEC Form 4 filed today:
How much did he sell for?  $0.0025 per share- a quarter cent apiece.  The sale would net him just about $103,426.25, less commissions.

SEC Form 4
Washington, D.C. 20549


Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
OMB Number:3235-0287
Expires:December 31, 2014
Estimated average burden
hours per response:0.5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. SeeInstruction 1(b).
1. Name and Address of Reporting Person*
Gillispie Donald L



2. Issuer Name and Ticker or Trading Symbol 
5. Relationship of Reporting Person(s) to Issuer 
(Check all applicable)
DirectorX10% Owner
Officer (give title below)Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
4. If Amendment, Date of Original Filed (Month/Day/Year)6. Individual or Joint/Group Filing (Check Applicable Line)
XForm filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)2. Transaction Date (Month/Day/Year)2A. Deemed Execution Date, if any (Month/Day/Year)3. Transaction Code (Instr. 8)4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)7. Nature of Indirect Beneficial Ownership (Instr. 4)
CodeVAmount(A) or (D)Price
Common Stock05/17/2013A41,370,500D$0.00250D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)2. Conversion or Exercise Price of Derivative Security3. Transaction Date (Month/Day/Year)3A. Deemed Execution Date, if any (Month/Day/Year)4. Transaction Code (Instr. 8)5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)6. Date Exercisable and Expiration Date (Month/Day/Year)7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)8. Price of Derivative Security (Instr. 5)9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)11. Nature of Indirect Beneficial Ownership (Instr. 4)
CodeV(A)(D)Date ExercisableExpiration DateTitleAmount or Number of Shares
Explanation of Responses:
/s/ Donald Gillispie05/17/2013
** Signature of Reporting PersonDate
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

Federal Bureau of Investigation: Looking for Hot Investment Tips?

Looks like the Federal Bureau of Investigation is looking for hot investment tips would like to hear from any victims who invested in, or received stock in, Alternate Energy Holdings, Inc:

That questionnaire comes from the FBI's "Seeking Victim Information" page:

Monday, August 13, 2012

AEHI Shareholder Class Action Suit Settlement Order and Notice Filed, Settlement Average of $0.0034 Per Share

In the Shareholder Class Action suit against Alternate Energy Holdings, Inc. and its CEO Don Gillispie, recent filings include an almost identical motion from AEHI attorneys K&L Gates to withdraw from that case, for what K&L Gates say is non-payment of over $700,000.00 in legal fees.
Earlier filings of interest are an "Order Preliminarily Approving Settlement and Providing for Notice" and a "Notice of Pendency and Settlement of Class Action".

Highlights of those documents:
There will be a hearing in Federal Court on October 31, 2012 at 3:00 PM to determine if this settlement is "fair, reasonable, and adequate, and should be approved by the Court." (p.3)

Definitions of Class Members, Class Periods:  Roughly, anyone who purchased or otherwise acquired AEHI stock from October 23, 2006 until December 14, 2010. (p.1 of Notice)

The total settlement in gross dollars is $450,000.  According to the Settlement Notice, that's about $0.0053 per share for the "85 million shares estimated to have suffered damages during the Class Period."  They then break that down to $0.0019 for lawyers and administration and $0.0034 per share to the claimant, averaged over all shareholders.  The actual amount depends on the number of claims filed and the amount of damage in each claim, so the amount could be more, or less, for each individual filing a claim. (p. 2 of notice)

If a shareholder think that settlement is total bullshit, the shareholder has the option to request exclusion from the class.  If the shareholder does nothing, and does not file a claim, any future claims are forever barred.  (p.2-3 of Notice.)

15.  Class members shall be bound by all determinations and judgments in the Litigation, whether favorable or unfavorable, unless such persons request exclusion from the Class in a timely and proper manner, as hereinafter provided.  A Class Member wishing to make such request shall mail the request in written form, by first-class mail, postage prepaid, and postmarked no later than sixty-five calendar days after entry of this Order, September 24, 2012, to the Post Office Box address listed in the Notice.  Such request for exclusion shall clearly indicate the name and address of the person seeking exclusion, and that the sender specifically requests to be excluded from the Class (as defined in the Stipulation), and shall be signed by such person.  Such persons requesting exclusion are also required to specify all purchases of the relevant Alternate Energy common stock during the Class Period, including the number and price of shares purchased, the number and price of shares sold during the Class Period, and the date of each such purchase or sale.  It is also requested that such persons provide their telephone number or other contact information.  The request for exclusion shall not be effective unless the request for exclusion provides the required information and is made within the time stated above, or the exclusion is otherwise accepted by the Court.
16.  Class Members requesting exclusion from the Class shall not be entitled to receive any payment out the Net Settlement Fund as described in the Stipulation and Notice.
So, if a shareholder wants out of the Class, the shareholder has a deadline of September 24, 2012, more than a month before the Oct 31 hearing, to do so.
Documents below:

Thursday, August 9, 2012

AEHI Share Price vs. Various Grocery Items

So you're sitting on a stack of these, and wondering what you might be able to get out of them.  In other words, are AEHI shares even worth the paper they are printed on?

AEHI's share price was .01 this morning- one cent per share. It's currently at .02, though it went as high as .04 today. 
So the Dude went shopping, to see just what all a person could and could not get with one share of AEHI Stock:
Then, taking the price per package and dividing by the number of things in the package, the price per single item was calculated:  One Pringle, one tampon, one aspirin, one Skittle, etc.
Next, the major AEHI benchmarks were put in the list, and then sorted from highest price to lowest among the grocery items. Here is the chart with single item prices along with today's AEHI benchmarks:
(Click on image to enlarge)

** Averages as of 8/9/2012. Your results may vary.

Items generally worth more than a share of AEHI at .01, .02 or .03:

A slice of baloney is 40 times more valuable than a share of AEHI. (at .01 per share)

AEHI shares are, however, generally worth more than these things in this picture: (unless you factor in the cumulative net losses.  Then, no.)

Hell, AEHI shares aren't even worth the Dude's check to Ralph's for half and half:

Hell, with that check, the Dude could get 35 shares of AEHI at the current price! 

AEHI Attorneys File Motion to Withdraw as Counsel: Cites AEHI's Failure to Honor Financial Commitments "In Excess of $700,000.00"

On Wednesday, K&L Gates, LLP, filed a Motion to Withdraw as Counsel for Alternate Energy Holdings, Inc.  They cited AEHI's failure to pay "fees and disbursements due in excess of $700,000" that would, according to the motion, place an "undue financial burden" on the firm if they continue as counsel.

While the Board of Directors of AEHI consents to the withdrawal of K&L Gates, the attorneys for defendants Don Gillispie and Jennifer Ransom object to the motion.

From the Declaration of Barry M. Hartman: (emphasis added)

4.  AEHI has failed to honor its financial commitments to K&L Gates LLP in this matter for the months of January, February, March, April, June, and July 2012, resulting in fees and disbursements due in excess of $700,000.  
5.  Since late March, 2012, AEHI has been given repeated and reasonable warning that K&L Gates LLP will withdraw as counsel in this matter unless AEHI fulfilled its commitments.

It appears that K&L Gates does not accept AEHI stock as payment for services.  If Don Gillispie and AEHI had a good any business plan and any hope of ever making a profit breaking even, wouldn't a business savvy law firm accept all the shares they could get from their own client, especially at the bargain barely book value price of $0.02?

Another question:  Why would any legitimate company continue to pay its CEO $46,000.00 per month while failing to pay its own legal bills?

Filing documents below:
Motion To Withdraw as Counsel:

Declaration of Barry M. Hartman:

Memorandum In Support of Motion:

Sunday, August 5, 2012

Keeping Up Appearances, Part II: "Initial Site Improvements"

With long periods of inactivity punctuated only by the occasional motions in the SEC fraud case, AEHI needed some sort of 'news' to share with the 'whining stockholders' and board members.
A while back, it was just the sign at the entrance to the property.
Water?  Of course they have water.  See the reactor cooling pond to the left of the sign?

Most recently, however, the company announced "progress" in the form of  what they call "Initial Site Improvements."

What "improvements?" Dragging a trailer in, making a gate, installing a culvert.

They're pretty good at saying things that are technically true.
Here is their elaborate gating system.  You can also see Don's Ford Compensator Pickup in front of the "Energy Complex" trailer:
Elaborate Terrorist-Proof Gating System with Big Mean Scary Sign.
Nuclear Command Post with Ford Compensator Quick Response Vehicle in background.
Here is their new Facebook cover photo:
Clearly, it's legit!  They have a sign and a trailer.  And a fancy gate and stuff.  
Here is the announcement of all the stuff they are doing so that it looks like they are actually doing something besides paying themselves lavish salaries: (facebook link)  (Link on AEHI websiste)

This sort of thing,  making things appear to be more elaborate or significant than they really are, is nothing new in Idaho.  It's a well-used tactic to get money from investors.

Here is an excerpt from an excellent book, Roadside Geology of Idaho, page 119, Part III, Central Idaho, "Frontier Mining":
Many of those old mines and claims back in the hills were simply stock promotions.  In a word, scams.  The promoters would set up a few small buildings, buy some nice ore samples, and print a batch of colorful stock certificates.  Then they went to one of the big eastern cities, sold the stock, and returned to the Rocky Mountains to enjoy the proceeds.  It was an efficient system:  The investors promptly lost their money without any intermediate fuss over operating a mine.  If you run across what looks like  an abandoned mine, but can't find much sign of spoil heaps, ore minerals, ditches, or haulage roads, you may well be looking at the relics of an old stock scam.  An amazing number of mines never shipped any ore, or even had any mineralized rock to mine.
From Roadside Geology of Idaho, by David. D. Alt and Donald W. Hyndman, Mountain Press Publishing, Missoula, 1989.

Just substitute "foot of transmission line"or "ounce of spent nuclear fuel" in the detritus list and you've got this one in a nutshell.  Same shit, different day.  Old as the hills, or at least as the history of Idaho.

Wednesday, July 25, 2012

SEC Files Reply and "Motion to Strike" AEHI's "Statement of Disputed Material Facts"

The SEC, on time, filed a Reply in Support of their Motion for Partial Summary Judgment.  AEHI, in filing their earlier Response to the SEC's motion, attached a document it called a "Joint Statement of Disputed Material Facts," covering both defendants AEHI and Don Gillispie.
In their reply, the SEC characterized that Statement of Disputed Material Facts as so bad that they filed a motion to strike that statement from the record.


"AEHI’s public filings show a ceaseless trawl for cash beginning in October 2006 (before the first of the 23 PPMs defendants call “offerings”), through the filing of this lawsuit in December, 2010. SUMF ¶ 22.5 In fact, a sideby-side review of AEHI’s monthly stock sales against defendants’ chart of the 23 PPMs selected by AEHI shows no correlation between the sales and the timing of the supposed 23 offerings."

From the Motion to Strike: (emphasis added)
3. Defendants Inappropriately Rely on “Privileges” to Shield Evidence
In a further attempt to limit the Court’s consideration of relevant evidence, defendants rely on privilege arguments that are contrary to law. First, though defendants do not dispute that Gillispie asserted his Fifth Amendment privilege during his April 27, 2012 deposition in refusing to testify substantively to the questions posed, defendants nevertheless claim that his refusal to answer was not made “on the ground that the answer would tend to incriminate him.” The law says otherwise. A person does not have “carte blanche by virtue of the Fifth Amendment’s self incrimination clause to refuse to answer a question,” but can invoke the privilege only if “the answer one would give if one did answer it (and answer it truthfully) must have some tendency to subject the person being asked the question to criminal liability.” “To claim the privilege validly a defendant must be faced with “substantial hazards of self-incrimination, that are real and appreciable and not merely imaginary and unsubstantial.” Accordingly, the only inference that could be drawn from Gillispie’s refusal to answer questions is that the answers would tend to incriminate him.

Here is the SEC Reply:

The SEC's Motion to Strike:

Wednesday, June 6, 2012

SEC Files Motion For Partial Summary Judgment Against Alternate Energy Holdings, Inc., and CEO Don Gillispie

On June 1, the SEC filed a Motion for Partial Summary Judgment against AEHI and CEO Don Gillispie based on a very interesting "Statement of Undisputed Material Facts" which contains multiple references to Gillispie's  assertion of Fifth Amendment rights and the fact that by so doing, he "removes any chance that any other explanation can be offered."  The Memorandum in Support also points out that, "Parties are free to invoke the Fifth Amendment in civil cases, but the court is equally free to draw adverse inferences from their failure of proof.”
The Memorandum goes on to explain, "In any event, Gillispie is now precluded from presenting evidence in opposition as to matters on which he has invoked the Fifth Amendment privilege, including his knowledge." (p.24) (emphasis added)
See the Memorandum in Support

Here is the SEC's Statement of Undisputed Material Facts upon which they base the Motion for Partial Summary Judgment, included below that. The actual SEC Motion:

Tuesday, June 5, 2012

Source Capital Group Exec Scolded AEHI CEO Don Gillispie for "Inappropriate and Misleading" Stockholder Communication

A few more interesting nuggets are found in the latest pile of documents filed in support of the SEC's motion for partial summary judgment.  Alert readers may recall the the post some time ago discussing "DonSpeak" and Gillispie's constant press release claims to "have funding commitments" which he directly contradicted in all of the company's quarterly and annual reports.

On September 9, 2009, AEHI CEO Don Gillispie sent out a shareholder update and stock solicitation (also posted on his "Clean Energy" blog here) which made the claim that that, "“The Idaho reactor, Idaho Energy Complex, is the process of seeking local approval and we expect it by year’s end....   We have a funding commitment from Source Capital for the site."

That particular notification did not sit well with Source Capital Group's "Senior Managing Director of Investment Banking," Richard Kreger, who wrote to Don a few days after the update:

"It was inappropriate and misleading for the company to notify its shareholders that the company has a funding commitment from Source Capital. What the company has from our firm is a commitment to raise capital for the company on a “Best Efforts” basis. Please clear all communications with us before communicating this kind of information with the public.

Here is the document filed by the SEC June 1, which has the email from Mr. Kreger to Don: (go to page 2 of 64, AEHI's "inappropriate and misleading" shareholder communication is right below it.

Interestingly, it was not the first time Mr. Kreger scolded Don for going too far with his "misleading" claims.

Here's the text of a June 5, 2009 AEHI Press Release:

"AEHI signs agreement with Source Capital Group to fund Idaho nuclear site Boise, Idaho, June 5, 2009 – Alternate Energy Holdings, Inc (OTC: AEHI.PK): AEHI signs an agreement to utilize Source Capital Group, Inc. to raise capital for the Idaho nuclear plant site project this week. The funds will cover land, water rights and engineering services to obtain NRC approval to construct and operate an advanced nuclear plant in Elmore County, Idaho. CEO Don Gillispie said, "This is a major step in the process to bring the first commercial nuclear plant to Idaho and the first advanced nuclear plant to the western US that is so in need of clean, low cost base load power to sustain industry and agriculture. We are very pleased to have a company with Source Capital's experience in raising funds for energy projects on board." Richard Kreger, Senior Managing Director of Investment Banking for Source Capital, stated that “Mr. Gillispie and his team have an extensive background in the nuclear power industry and have developed a compelling plan to create a new and much needed energy source for the western United States. We are excited to bring the merits of their vision to investors in an effort to ensure the success of this worthy project.” David Harris, President of Source Capital Group, Inc., affirmed that “clean, low cost energy is one of the most vital areas of focus for our nation’s future. Source is pleased to have the opportunity to leverage its financial services expertise in the energy sector to raise capital for AEHI and this important initiative.”

Mr Kreger sent this admonishment to Don after reading the press release:

“You should have forewarned me about that, number 1. Number 2, I requested that you remove my quote. This is not the way to kick things off. Number 3, I will not speak with reporters at all should they call me as the company is public and I can not disclose material non-public information in regards to this project to anyone not under NDA with the company.”

That email exchange is on page 53 of this document from the SEC filing:

Sunday, June 3, 2012

AEHI CEO Don Gillispie: "Based on the advice of Counsel, I invoke my rights under the Fifth Amendment and decline to answer." - 134 Times!

In a sworn deposition with SEC attorneys on April 27, 2012, Alternate Energy Holdings, Inc. CEO Don Gillispie asserted his Fifth amendment right against self-incrimination no less than 134 times in about an hour and a half.  Many of the questions are very simple, like the first one:  "Mr. Gillispie, are you married?"

Some very interesting developments alongside the SEC case appear to have motivated Don's reluctance to speak.  Page 27 has the most intriguing partial information, some of which has been redacted by the SEC.  Don's attorney says he is "representing him in connection with...." and five lines are blacked out.  He goes on to say "In my experience people who are investigated who are charged criminally may be innocent, and in Mr. Gillispie's situation, I mean, he certainly denies any criminal wrongdoing."
On page 28, the SEC attorney, in explaining the situation, gives us a few more clues:
"Just at the outset I would say that any criminal investigation is not within the purview of the SEC.  It's within the purview of the US Attorney's office here in Boise.  And, of course, if you have questions about that, I would refer you to the US Attorney's office."  Then, three and a half more lines are blacked out.

  Something very interesting is going on alongside both of AEHI and Gillispie's Federal Court cases, which are only civil, not criminal cases.

There are more clues scattered about the record- a reference in an earlier response to a motion to compel in which AEHI refers to the government having "seized computers,"  AEHI filing motions to seal documents which could "cause harm to defendants" if made public, and in a new court case filed in Payette county, (paragraph 51 on page 43, this little nugget:
"Payette County officials not only ignored evidence of fraud that had been presented in US District court, but they also apparently ignored the existence of a federal criminal investigation of the AEHI stock fraud scheme. On February 9, 2011, Payette County received a request for records from Special Agent Melissa Ripley of the U.S. Department of Treasury,  Internal Revenue Service, Criminal Investigation Division." (emphasis added)

Below are the actual deposition and Payette Lawsuit documents:

Thursday, November 17, 2011

AEHI CEO Turning Failure Into Success: How to Not Do Your Homework and Still Get a Big Fat Raise

The Dog Keeps Eating Our Homework, part...what, 5?

This has been covered before, but now it's starting to look like a bad habit:

April 1, 2011:  Instead of the Annual Report due the day before, AEHI filed a "Notification of inability to timely file Form 10-K 405, 10-K, 10-KSB 405, 10-KSB, 10-KT, or 10-KT405"  Why? Because they were "not able to timely compile the subject report without unreasonable effort or expense."

May 17, 2011:  Instead of the Quarterly report due the day before, AEHI filed a "Notification of inability to timely file Form 10-Q or 10-QSB." Again, they offer up the half-assed excuse, "Registrant was not able to timely compile the subject report without unreasonable effort or expense."

June 13, 2011: On the heels of these two failures by CEO Don Gillispie to effectively  manage his company so as to comply with rudimentary SEC filing requirements, the AEHI board takes decisive action:   "On June 10, 2011, the Board of Directors of Alternate Energy Holdings, Inc. approved a fifteen percent (15%) increase in the monthly salary of Donald L. Gillispie, the Company’s President and Chief Executive Officer, from $40,000 per month to $46,000 per month, to be effective as of July 1, 2011."

Taking the Board's clear signal in the form of his 15% raise,  AEHI CEO Don Gillispie and his staff continue as usual, blowing off the next two SEC reporting deadlines:

August 16, 2011:  Instead of the Quarterly Report due the day before, AEHI filed a "Notification of inability to timely file Form 10-Q or 10-QSB" Why again? You guessed it: "Registrant was not able to timely compile the subject report without unreasonable effort or expense."

November 15, 2011:  Instead of the Quarterly Report due that day, AEHI filed a "Notification of inability to timely file Form 10-Q or 10-QSB"  Yeah, they did.  Again:  "Registrant was not able to timely compile the subject report without unreasonable effort or expense."

Four consecutive SEC filing dates deadlines, known well in advance.  Four consecutive failures on the part of the CEO to ensure his company filed those reports by the deadline.

What should we expect? -  he does only get $552,000.00 a year in cash compensation for all that hard work, after all.

Monday, October 10, 2011

Who's The New Guy?

AEHI announced a new hire on October 5th:

Alternate Energy Holdings, Inc. today announced the hiring of J. Peter Honeysett as Director of Nuclear Projects, a newly-created position focused on directing the Payette, Idaho nuclear project and others as they relate to nuclear energy.
A 29-year veteran of the nuclear industry, Honeysett spent his career with Florida Power and Light working in operations at the St. Lucie Nuclear Power Plant in Port St. Lucie, Florida. As a senior licensed operator he has been involved in all aspect of plant operations throughout his career including the responsibility of overseeing operations of both nuclear reactors at St. Lucie.

Where might one have heard about this fellow before?  Here is a letter he wrote in support of AEHI to Payette County during the rezone process:

Look at how closely the press release bio matches Mr Honeysett's own letter.  

Interesting that AEHI didn't announce a job search prior to hiring for this 'newly-created position.' It's also interesting that someone local was not hired. One wonders what happened to all the resumes collected during AEHI's little resume stunt to generate rezoning support a couple of years ago. 

Saturday, July 30, 2011

Motion Sickness, Part II: Discovery Dispute Continues; SEC Files Motion to Compel AEHI to Produce and Preserve Documents

Continuing the saga of the discovery dispute from May, the SEC has now filed a Motion to Compel Alternate Energy Holdings, Inc., and its CEO Don "Idunno" Gillispie to produce the shit the SEC has been asking for since, oh, 'round 'bout Dec 27th or so, give or take . The SEC looks to be none too happy with AEHI's attorneys shenanigans, so the SEC fired this motion off, escalating things a bit:

Motion to Compel
Memorandum in support of Motion to Compel
Declaration of SEC Attorney David Berman 
Exhibits A-F
Exhibit G:  Deposition of Don Gillispie, June 28, 2011.
Exhibits H-P

Interesting look at our CEO with 45 years experience who is somehow worth more than $40,000.00 per month:   
Video of SEC attorneys asking Don a simple question.

Q. Is AEHI China incorporated in the United States?
A. N0.
Q. Is it incorporated in China?
A. They have a Chinese business license. I do not know if they are incorporated in China.
Q. Is AEHI China incorporated in any jurisdiction?
MR. ROTH: In the US, you mean?
Q. BY MR. BERMAN: In any jurisdiction anywhere?
A. I really don't know. I just wanted to have a business license in China because that's
what we needed to be able to do this.
Q. When I say "incorporated," that implies that AEHI China may be a corporation. Let me ask a different question. Does AEHI China have a business form other than a corporation?
A. I don't know.
Q. For example, is AEHI China an LLC?
. I don't think so, but I'm not sure.
Or something called a Limited Company? . It may be that. That rings a bell.
Who would know whether AEHI China -

who would know about the corporate structure of AEHI China?

A. I assume Nancy Shi, since she's the one that set it up.

Q. Is AEHI China registered with the Chinese government in any way other than having a business license?
A. All these documents are in Chinese. I've seen the business license, and you can see "AEHI China" and everything else is in Chinese. I don't know exactly, but I know she had to get all of these pieces of paper to make this an existing entity that could operate in China. So whatever was required of it to get a license from the government, I know it took a business license because I've seen that. I think it may be issued from the government, and it is universal. It is not a city license, per se. We may do one in the state, but they do one for the whole country. I think the answer is yes to that question.
Q. I think you testified you don't have perfect understanding of this. S0 if you don't know, that's fine. I'm just going to ask some clarifying questions.
Does AEHI China have a charter from theChinese government?
A. I don't know.
Q. Does AEHI China report to the Chinese government in the way that AEHI reports to the Securities and Exchange Commission in the United States?
A. I don't know that either.
Q. D0 you know if AEHI China pays taxes in China?
A. I assume so.
MR. ROTH: If you don't know -
THE WITNESS: I don't know.
MR. ROTH: He doesn't want any assumptions. He wants to know what you know.
THE WITNESS: I do not. I don't know.
Q. BY MR. BERMAN: Does AEHI China pay taxes in the United States?
A. I don't know that either.

Q. Does AEHI China report to any ' United States based regulators?
A. I've never heard that mentioned.

Q. Does AEHI China work with any entity other than AEHI?
A. No.
Q. And let me clarify that. I'm thinking maybe I saw some hesitation, and I think know

Other than as a counter party, does AEHI China work on behalf of any other entity besides AEHI?
A. I do not believe so.
Q. Does AEHI China have a physical office anywhere?
A. Yes.
Q. And where is that located?
A. It's in Beijing.
Q. Can you tell me the address in Beijing?
A. Not off the top of my head. It is in the Central Business District.

Q. Does it have any other offices anywhere?
A. N0.
Q. Does it maintain files anywhere outside of its Beijing office? 1
A. I don't think so.

Monday, July 18, 2011

Idaho Samizdat Nuke Notes Blog Article on SEC vs. AEHI

Here's the latest take on the SEC vs. AEHI case from respected nuclear issues blogger Dan Yurman, at his Idaho Samizdat Nuke Notes Blog:

Impact on other nuclear programs in Idaho
AEHI’s now tarnished reputation has been a pain in the neck for the Idaho National Laboratory, which conducts nuclear energy R&D work for the federal government.
An anonymous source familiar with the issues at the Idaho lab told this blog this week via email that having a firm like AEHI in Idaho has often challenged INL's public image.
"We all too often have to defend our own programs and the nuclear industry because of their corrupt tactics, rhetoric, and confusing promises. The sooner AEHI goes away the better."
So much for AEHI's claims of credibility in the nuclear industry.

Wednesday, July 13, 2011

SEC Files Motion to Amend Original Complaint: "AEHI's Securities Lawyers and Investor Relations Firm Resigned Over Their Concerns"

The SEC on July 7th filed a Motion for Leave to Amend Complaint, outlining the SEC's addition of new claims and "further factual allegations describing the time, place, and manner of the defendants' fraud," in their case against Alternate Energy Holdings, Inc., CEO Don Gillispie, and Fomer Key Senior Executive Vice President (and now former President of Energy Neutral) Jennifer Ransom. And her dog Bosco's LLC, too.

Appendix A to the Motion is the Amended Complaint, and Appendix B (immediately following A in the same .pdf in the link) is the original Complaint with the proposed changes shown as strikethrough or underline for deleted or added material.

Lots of new shit has come to light in the amended complaint.  A couple of highlights:

One of the more interesting additions is paragraph 82, on page 20 of the Amended Complaint: (emphasis added)
AEHI Continues to Issue New Press Relaeases
82.  On or around September 22, 2010, after raising the issue with Gillispie and company management, AEHI's securities lawyers and investor relations firm resigned over their concerns about the volume and and nature of AEHI's press releases.

83.  Following these resignations, AEHI continued to issue a new press release almost every business day, including on October 4, 11, 14, 15, 18, 19, 25, 27, 28; November 1, 2, 8, 9, 11, 15, 17, 22, 29; and December 1, 2, 3, 6, 10, and 13, 2010.
On page 12, the SEC adds a new laundry list of Private Placement Memoranda that, according to the SEC, "falsely state" "that they have funding."

If the court grants the Motion for Leave to Amend Complaint, then AEHI will have 14 days to respond to the new allegations in the amended complaint.

As more new shit comes to light, the Dude will post it here.