"In 2009, Gillispie received $367,456.15 in cash and paid expenses – $234,456.15 more than the $133,000 disclosed to investors. AEHI’s 2009 10-K reported that the company paid Gillispie a flat fee of $133,000 of “other compensation” consisting of an “expense allotment for travel, auto, Idaho living expenses, and entertainment.” Gillispie confirmed in his deposition that these flat payments were meant to pay for such things as his Idaho house. In reality, Gillispie pocketed these purported expense allotments while AEHI separately paid his bills. For example, Gillispie, a Virginia resident until 2009, set up automatic debits from AEHI starting in 2008 so that the company would pay rent on a $500,000 home that he leased in Idaho. The rent on Gillispie’s house was $3,000 per month so, in addition to his “expense allotment,” AEHI paid Gillispie’s landlord $36,000 in 2009 alone. In 2009 Gillispie also double-dipped by submitting $143,456.15 in credit card bills directly to AEHI for payment, and keeping his expense allotment for those same expenses. The bills included expenses for travel to Asia, California, the Bellagio Hotel & Casino in Las Vegas, and the Broadmoor Hotel in Colorado Springs, as well as restaurants, flowers, and $10,718.40 for Broncos season tickets. Aside from the double-dipping, Defendants fail to explain why Gillispie got at least $55,000 of additional undisclosed cash from AEHI in 2009. Defendants’ chart of Gillispie’s 2009 compensation omits a wire transfer to Gillispie for $10,000."
Here's the house:
|AEHI Investor Money Hard At Work. (Not Energy Neutral, Incidentally)|
Lavish lifestyle? Let's see: A 4,600 square foot home for a supposedly single 60-something, with a private indoor pool and 5 car garage to park your Maserati and Range Rover?
Whatever happened to "these fine men who, in their retirement, are working without compensation?"
Q: How does the Dude know this is Don's house?
A: According to the Idaho Secretary of State, someone named Donald Gillispie, at that address, donated $100 to State Controller Donna Jones' campaign on October 21, 2010:
Q: $100?? What a cheapskate!
Shown below are the expense summaries from the SEC. The full exhibits are in document 9, exhibits N-T.
|Note the Acqualina 5-Star Luxury Resort|
Remember this part of that email exchange back in November?
From: AEHI Info email@example.comDate: Wed, Nov 24, 2010 at 10:03 AM
Subject: RE: Investor Questions
That’s wise…he does not take money out regularly…he now takes a salary but often takes less instead…but know he has put it in regularly at times to pay for things….he is one most honest and generous man I know…he was recently was selected as Honorary Wing Commander at the Mountain Home Air Force Base and Idaho Business Man of the Year by American Solutions….background checked by Home Land Security to meet Prime Minister of Korea and undersecretary of Energy in China…..
Right on, Don.