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

Former AEHI CEO Don Gillispie

Former AEHI CEO Don Gillispie
OK, everyone, I've got to step out for just a minute. I'll be right back, I promise!

Wednesday, March 30, 2011

Got a Letter in the Mail: the Vultures are Circling

An important looking letter arrived in the DudeNewsWire world headquarters' mailbox the other day, from the respected law firm of Dewey, Cheatham, and Howe, LLP, apparently the latest in an ever-growing list of law firms lining up vultures circling for the best position to pick off what little will be left on the bones of this  fiasco.

One paragraph immediately stood out:

"It was not until December 16, 2010, the complaint alleges, when the SEC instituted a civil action against Alternate Energy and defendants Gillispie and Ransom, that any reasonable investor or class member could have reasonably suspected that the company's statements with respect to Gillispie's stock positions were false and misleading.  Nor could have investors reasonably suspected that the Company and certain of its officers and directors were engaging in a scheme to artificially inflate the Company's stock price."


Any reasonable investor would have looked at the suspicious "Grace Glens Consulting", "IPO Assist", and "Energy Executive Consulting" LLCs and realized they were a perfect way for the CEO to obtain extra stock and cash from the company without scrutiny.  Given that situation, it would be reasonable to conclude that the CEO's stated stock positions were laced with deception- the mechanism to do so was as obvious as a guy walking out of a house with crowbar, a television set, and a sack over his shoulder.

Any reasonable investor would have looked at every single press release, starting with the utterly laughable "lightning harvesting technology" fiasco, laughed his ass off, and moved on.  Nothing the company claimed it was doing ever came to fruition- no lightning farms, no CO2 to baking soda, no fuel additive, no land purchase, nor did any of those ever have a chance of coming to fruition.  No reasonable investor would have considered this continuous stream of hype realistic.

AEHI's own SEC reports practically shout out loud that this is going on- warning investors in no uncertain terms they will likely lose their asses if they invest. This blog has been pointing out how preposterous the company's claims are, and how suspicious its reports, for almost two years.

So, reasonable investors could have known, and should have known, and most did know, better than to invest in this.  The ones who did invest, and lost their asses in spite of all the obvious warning signs, chose to ignore the obvious and believe instead the hype. They were unreasonable, and they should not be entitled to compensation or reimbursement just because they chose to make a terrible investment in spite of very clear warnings.

Dewey, Cheatham, and Howe should probably find another approach.  Like, where the hell did all that money go, exactly?  And as the SEC has shown us, that would be something a reasonable investor could not have known.

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