AEHI Truth

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

2011-11-17T09:53:00.002-07:00

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.

Who's The New Guy?

2011-10-10T06:49:00.000-06:00

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.

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

2011-07-30T08:30:00.002-06:00

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.

Idaho Samizdat Nuke Notes Blog Article on SEC vs. AEHI

2011-07-18T10:55:00.001-06:00

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.

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

2011-07-13T16:11:00.001-06:00

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.

AEHI Facebook Response: CEO Don Gillispie Too Busy To Respond to Former Board Member; "Speak to Someone Else"

2011-05-31T11:11:00.001-06:00

A warning of sorts to Alternate Energy Holdings, Inc.'s newst board member: If you leave, you might not get the answers you were looking for. Oh Well.

Via AEHI's stock pumping Facebook page, former board member Gregory Kane finally gets a reply (a full 12 days later) to his question regarding his 2.5 million share stake in the company:

"Greg, there is no black out on AEHI stock. It is trading, but with a much smaller volume, based largely on price and the fact that there is no market maker on the stock. I cannot comment on how that is coming along, except to say that the proper paperwork has been filed, but what happens next is up to the FINRA approval process. As for Mr. Gillispie, he is very busy with pressing matters that relate to approving and building a nuclear power plant, so your broker will need to speak to someone else in the office."

Like maybe the Key Senior Executive Vice President for Lavish Expenditures?

Since he is a former board member, maybe Mr. Kane's shares are restricted- which could very well mean his shares are 'blacked out'- until the company removes the restriction. One of the emails in the SEC case has Don directing someone to move shares from unrestricted back to restricted. Maybe this former board member is simply seeking to have Don, or his Key Senior Executive Vice President for Administration and Asian American Relations remove the restriction on Kane's shares. But, it appears, the folks at AEHI's World Headquarters are simply too busy to be bothered with such requests.

Here's the screenshot (with unrelated comments snipped out):

Updated: AEHI Announces New Board Member; No Stranger to Luxury, Generosity

2011-05-31T08:02:00.005-06:00

Got this in email at DudeNews Headquarters this morning:

May 31, 2011

For Immediate Release

Contact: Dan Hamilton

AEHI

Tel: 208.939.9311

AEHI Board Approves Dr. Glenda Baskin Glover as Director

Highly Respected and Distinguished African American Woman Joins Board

BOISE, IDAHO - May 31, 2011: Alternate Energy Holdings, Inc. (OTCQB:AEHI; www.aehipower.com) announced today that Dr. Glenda Baskin Glover was approved as AEHI's newest Director by the company's Board of Directors including Chairman and CEO Don Gillispie.

Dr. Glover was carefully considered and approved based on her exceptional background and reputation. She serves as the Dean of the College of Business at Jackson State University in Jackson. Mississippi. She holds a Ph.D. in business and economics and is one of few African American women to hold the economics Ph.D. - CPA - JD combination in the nation.

"I have been following AEHI for quite a while. The company has an exciting business model and an extremely qualified CEO and Board that I believe is on the verge of accomplishing groundbreaking goals in the nuclear industry. Some of those include plans to approve and build a new nuclear power plant in the United States and the company's push to implement nuclear desalination plants around the globe. I want to be a part of it and I believe I have the necessary tools to help further those goals," said Dr. Glover.

"Dr. Glover is a perfect fit for AEHI. She has extensive qualifications as a CPA, an economist, and an attorney. She also has a notable background in energy having worked with Potomac Electric Power Company. I believe she will be an exceptional addition to our Board," said Don Gillispie, AEHI CEO.

Dr. Glover's notable employment history includes the Chair of the Department of Accounting at Howard University, Senior Vice President and Chief Financial Officer of an engineering firm, Tax Manager at Potomac Electric Power Company, and accountant with Arthur Andersen & Company. Glover is licensed to practice law, known as an economic development specialist, regarded as one of the nation's experts on corporate governance, empowerment zones, and is highly sought political strategist. She has provided economic insight to key educational, political, and community issues for major national organizations.

Dr. Glover has served on numerous corporate and national boards such as The Student Loan Corporation - a subsidiary of Citigroup, The Lenox Group, Regions Bank of Mississippi, the Harvard Business School Management Alliance, Board of Examiners for the American Institute of Certified Public Accountants, the MetroJackson Chamber of Commerce, and Chairperson of the Jackson Municipal Airport Authority Board of Commissioners. Other affiliations include the National Bar Association, NAACP, The Links, Inc., and Alpha Kappa Alpha Sorority.

About Alternate Energy Holdings, Inc. (http://www.aehipower.com) -- Alternate Energy Holdings develops and markets innovative carbon-free energy sources. The company is the nation's only independent nuclear power plant developer seeking to build new power plants in multiple non-nuclear states; Idaho Energy Complex is the lead project. Other business units include Energy Neutral(R), which reduces energy demands for homes and businesses (http://www.energyneutralinc.com) and Green World Water(TM), which assists developing countries with nuclear reactors for production of potable water, power generation and other suitable applications (http://www.greenworld-h2o.com).

Safe Harbor Statement: Statements in this press release which are not purely historical, including statements regarding Alternative Energy Holdings', intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. These statements are based on the beliefs of our management as well as assumptions made by and information currently available to us and reflect our current view concerning future events. As such, they are subject to risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: our significant operating losses; our limited operating history; uncertainty of capital resources; the speculative nature of our business; our ability to successfully implement new strategies; present and possible future governmental regulations; operating hazards; competition; the loss of key personnel; any of the factors in the "Risk Factors" section of our Annual Report on Form 10-K for the most recently completed fiscal year; and any statements of assumptions underlying any of the foregoing. You should also carefully review the reports that we file with the SEC. We assume no obligation, and do not intend, to update these forward-looking statements, except as required by law.

###

Looks like she's legit.
In which case, there'll might some changes in practice there at AEHI World Headquarters in Eagle.
Or, the'll have another director bail out in a few months. We'll see.

Update: An Alert Reader found an article in the Jackson Advocate which may shed some light on the selection of the new board member: (emphasis added)

It can certainly be said that Glover really enjoys the finer things in life, such as, expensive clothes, eating at high priced restaurants, taking cruises and jetting around the world seated in first class. However, Glover's humble upbringing of never forgetting where she comes from is oftentimes demonstrated by her anonymous gifts to the least of these.
For example, when she hears of a family being burned out or some other catastrophic event affecting the poor, she may show up driving her signature Jaguar car, bearing gifts of clothing items, furniture or a large check to ease the burden on the affected family. Or, she may give generously to her favorite civil rights organization to help fund their programs and objectives.

Hmm. Sounds familiar.

Perhaps they met at some five-star resort, and maybe Don casually mentioned the troubles he and his Key Senior Executive Vice President face with lawsuits from the SEC and investors.
At which point, maybe the prospective board member would have offered, with a smirk and consdescending tone, "Let me show you how it's done in the real world."

As the Alert Reader pointed out, let's hope Don told her about the $2500 reporting rule if she seeks to indulge her penchant for luxury and generosity on the AEHI dime, at least.

Departed Director: Former AEHI Board Member Can't Seem to Get Answers- Now Just Another "Whining Shareholder?"

2011-05-20T09:31:00.004-06:00

Alert Readers may recall Alternate Energy Holdings, Inc's February Board of Directors ~~shakeup~~ exodus, in which two Directors (28% of the board) resigned effective immediately, according to their timely filed(!) 8-K:

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 7, 2011, Alternate Energy Holdings, Inc. (the "Company") accepted the resignations, effectively immediately, of Mr. Leon Eliason and Mr. Gregory Kane from the Board of Directors of the Company. Mr. Eliason and Mr. Kane have each served on the Board of Directors of the Company since the Company’s inception in 2006. Both Mr. Eliason and Mr. Kane resigned due to personal reasons and not over any disagreement with the Company’s Board of Directors or its management. The Company intends to search for potential candidates to appoint as new directors of the Company to fill the vacancies created by Mr. Eliason’s and Mr. Kane’s resignations.

However, Alert Readers will want to take a look at AEHI's Stock Pumping Facebook Page, where the Dude observed an interesting comment by former Director Greg Kane: (took a screenshot in case the comment gets deleted)

Whoa. A former director's stock broker can't get a call in to Five-Finger Double-Dipping Don? Not even the (Now Conveniently Former) Key Senior Executive Vice President For Lavish Expenditures will return his calls?

But Wait, Dude! Are you sure it's the same guy?

Yep. He even posted the same comment on his own Facebook Page:

Sure enough, the "Eagle-I Nuclear Assistance" company matches Kane's bio from an earlier company 10-K:

Greg Kane, Vice President and Director

A past nuclear plant manager, Mr. Kane has served as Vice President and Board member of the Company since September 2006. Mr. Kane is the President of Eagle “I” Nuclear Assistance, a consulting firm that has provided management consulting to over 25 nuclear programs. Mr. Kane has held that position since 1998. Mr. Kane was previously the General Manager at Virginia Power’s twin unit PWR North Anna Nuclear Plant, where he was responsible for safe operation and budgeting of the station in the all aspects of operations. Mr. Kane has completed the Navy Nuclear Program.

It looks like this former Director might be trying to unload the shares he got stuck with during his tenure, and has run into some sort of snag, and now Don Gillispie won't return the broker's phone calls.

How much stock did Kane get stuck with?

According to this Form 4, about two and a half million shares:

No wonder Kane's a little miffed at his broker being blown off- that's somwhere near a quarter million dollars given the recent .08-.13 share price range.

And, it's no wonder Don Gillispie and his Convenietly Former Key Senior Executive Vice President are blowing off the guy's broker- they sure don't want to have to tell the other shareholders that a former board member is trying to unload his stake, or part of it.

One gets the sense that perhaps not all is well at AEHI Interplanetary Headquarters...

New Filings in AEHI SEC Lawsuit: Motion Sickness and Discovery Disputes

2011-05-18T13:18:00.000-06:00

On April 8, Alternate Energy Holdings, Inc. filed a Motion For Summary Judgment in the SEC's ongoing case against the company. In it, and its attached Memorandum in Support and Statement of Undisputed Facts, the company essentially repeats claims made in their answer to the SEC's complaint, and leans a bit more on the assertion that (Now Conveniently Former)Key Senior Executive Vice President Jennifer Ransom was Actually Just Someone Hanging Around The Office And Answering Phones, and that she relied upon the advice of counsel in her failing to file any, like, paperwork or anything, as she unloaded a million shares of AEHI stock while filing her nails and arranging cruises, limousine service and trips to China. But the Dude digresses.

'Round about April 26th, the Judge issued an order adopting the parties' stipulation to response dates, discovery timelines, and on the 27th issued an order setting July 18, 2011, 9:00 AM as the hearing date.

Apparently, things went awry in the discovery process, and the parties whined to the judge via correspondence. No dice, said the Judge. Move me.

Thus was born yesterday's Motion to Vacate, which was accompanied by an interesting Memorandum in Support and three exhibits: Exhibits A, B and C. The most interesting is Exhibit A, a memorandum from SEC attotrney David Berman to AEHI's lawyers, indicating AEHI's reluctance or refusal to produce relevant emails and documents in time for the SEC to be able to use them in a deposition tomorrow! (May 19th) Check out some of the names and topics referred to in the memo: (emphasis and embedded links added)

Re: Securities and Exchange Commission v. Alternate Energy Holdings, Inc. etal., Case No.

Rich and Dick,

I write regarding the privilege log that you sent us last night for the documents produced by Pillsbury Winthrop Shaw Pittman. It is evident that defendants have directed Pillsbury to withhold a number of documnents that are clearly not privileged - either because of the basic nature of the documents, or because of the privilege waiver in this case, or both. Moreover, notwithstanding my previous request, defendants have not provided any explanation in the log as to why they believe the documents are privileged after the Waiver. Accordingly, we must ask that defendants reconsider their position and produce all responsive, non-privileged documents immediately, and in no event later than this Monday, May 16. This time frame is necessary to mitigate prejudice to the Commission, given that we are deposing Louis Bevilacqua - the Pillsbury partner at the center of defendants’ privilege waiver - on May 19 in Washington, D.C. in preparation for our response to defendants Summary Judgment Motion.

Because Mr. Bevilacqua’s deposition is scheduled for this coming Thursday, We do not have the time to identify each and every deficiency in the 163 page privilege log. Therefore, We have summarized below a few core categories of documents that have been improperly withheld.

A. Communications that are not privileged because they copy third parties.

A communication between a lawyer and his client is not privileged if a third party is present or copied. See generally In re Grand Jury Investigation, 974 F.2d 1068, 1071 n.2 (9th Cir. 1992) (test for privilege includes requirement that communication be “made in confidence.”). This is clearly the case for a large percentage of communications reflected in the log. For example:

PWSP00008-11 - Email copies David Waldman of Crescendo Communications

PWSP 000119-124 - Email copies Richard Kreger of Source Capital Group, Inc

PWSP 000533 - Email between Gillispie and Richard Hammond of UBS. Not only is no attorney party to the email, the email relates to “sale of Jenníe’s shares.”

PWSP 000540-541 - Email copies Martin Johncox and Cooper.

PWSP 000569 - Email copies Louis Shi, Jack Wynn, Tom Doss, Eric Cooper and Eddie Smith.

PWSP 001073 Email copies Jack Wynn.

PWSPOOOISO7-1509 - Email is between Gillispie and Richard Hammond of UBS (no attorney is party to the communication).

PWSP 0003003-4134 - More than 1,000 pages of letters are between Brian Buck of Pillsbury and Interwest Transfer Company (no client is party to the communication).

B. Documents that do not contain legal advice or Work product.

Documents are only privileged if they contain: (a) attorney-client communiications providing or reflecting legal advice, and/or (b) attomey work product created in anticipation of litigation. See . generally re Grand Jury Investigation, 974 F.2d at n.2; Admiral Ins. Co. v. US. Dist Ct., 881 F.2d 1486, 1494 (9th Cir. 1989) (citing Fed. R. Civ. P. 26(b)(3)). Cf United States v. Martin, 278 F.3d 988, 999 (9th Cir. 2002) (“The fact that a person is a lawyer does not make all communications with that person privileged.”) (internal citation omitted). Defendants have nowhere disclosed on which theory they are relying for the documents on the log. In fact, many of the documents on the log appear to fall into neither category. For example:

PWSP 0002953-2991 - Pillsbury invoices to AEHI

PWSP 00029923002 - Retention agreement between AEHI and Pillsbury

PWSP 0004250-4251 - Email summary is “Discussion regarding new counsel”

PWSP 007652-7656 Email summary is “Discussion re Pillsbury termination”

PWSP 007665 - Email summary is “Discussion about Revised Pillsbury legal bill”

C. Documents that are not priveleged because they are subject to defendants’ voluntary privilege Waiver.

Defendants have affirmatively claimed that Ms. Ransom is not liable under Section 16 of the Exchange Act because she relied on the advice of her counsel at Pillsbury when, in 2010, she chose not to publicly disclose her sale of a million AEHI shares. Defendants have rested this claim on the assertion that Mr. Bevilacqua was “the most knowledgeable and experienced person who had personal knowledge of Ms. Ransom’s title and obligations.”

A defendant “cannot be allowed, after disclosing as much as he pleases, to withhold the remainder.” Weil v. Inv. Indicators, Research & Mgmt., Inc., 647 F.2d l8, 24 (9th Cir. 1981) (quoting VIII J. Wigrnore, Evidence 2291, at 636). Said another way, defendants here cannot use the privilege as both a “sword” and a “shield.” And yet, this is what they appear to have done. The Pillsbury privilege log reflects that defendants have withheld documents related to the very same subject matter on which they have affirmatively waived privilege, and other documents that are necessary for the Commission to respond to their claim of reasonable reliance on counsel. For example:

PWSP 002120-2143, 00374-443 100 pages of email discussions between AEHI and Pillsbury regarding the filing of Forms 3 and 4 under Section 16 of the Exchange Act- the very statute under which Ms. Ransom is charged.

PWSP 002144-2149 - Emails relating to insider stock purchases and AEHI’s insider trading policy. These matters implicate the same disclosure issues and legal analyses that are at the center of defendants’ privilege Waiver.

PWSP 000573, 581-582 - Emails relating to “due diligence,” presumably regarding AEHI. These are plainly relevant to the question of what Mr. Bevilacqua knew (and was told) about AEHI and its management structure.

PWSP 000632-1019 - Almost 400 pages of emails relating to the drafting of AEHI’s 10-Q. These are plainly relevant to the question of what Mr. Bevilacqua knew (and was told) about AEHI and its management structure.

PWSP 006700-6735 - Same.

PWSP 004495-4497, 5691, 5693-5760, 5774-5775 - Emails relating to AEHI Private Placement Memoranda. These are plainly relevant to the question of what Mr. Bevilacqua knew (and was told) about AEHI and its management structure. For example, several AEHI PPMS describe Ms. Ransom as a “key member of management.”

AEHI's "Management Structure?" Ha! Four hundred pages of emails about a 10-Q? No wonder they were late. AEHI's Insider trading policy? What's a policy?

This is definitely getting more interesting.

More updates as they are filed on PACER.

AEHI Quarterly Report: First Revenue of $169K; $660K Admin Expenses; Net Loss of $653K; $20.2M Net Loss Since Inception

2011-05-17T14:16:00.002-06:00

Alternate Energy Holdings, Inc., led by priority-impaired CEO Don Gillispie, filed its SEC 10-Q for the first quarter of 2011 today, after previously announcing they would not be able to file by the deadline of the 16th due to not being able to file by the deadline of the 16th.
At least they had a good reason.

Highlights:

Turning Lemonade into Lemons

First ever revenue: $169,000, Cost of Sales 161,588; gross profits (drumroll please)........ $7,412!
Wow.
Till you see the Operating Expenses of $660,656.

Let's see: They were able to sell $161,588 worth of bullshit for $169,000 and it only cost them $660,656 to keep the doors open and lights on to facilitate generating profits that will somehow rival Exxon Mobil?.

And since inception, AEHI's management has managed, in not quite six years, to generate a net loss of 20.2 Million Dollars to finally show a whopping $7,412 profit!

$7412/$161,588= 4.5%. Shitty profit margin.
Here's the consolidated income statement from the late(est)-filed AEHI 10-Q:

Ouch.

Interesting apparent contradiction:

On page 13, "Notes To Consolidated Financial Statements", the Company says:

"During 2011, Alternate Energy Holdings, Inc. -Did not issue any common stock for services or cash."

However, on page 20, the Company says:

Financing Activities
Net cash used in financing activities increased by $3,906,446 for the three months ended March 31, 2011 as compared to the same period in 2010. The increase in funds used by our financing activities was primarily due to issuance of shares of stock for cash during the three months ended March 31, 2011.

Which is it? Did they or did they not issue common stock during the three months ending March 31, 2011?

Spent nearly a quarter million dollars in legal fees in three months:

Lawyer Up!

AEHI's Quarterly Report Late; Updates: Issues Puff Piece, Lost Homework Excuses In Lieu of Timely Report

2011-05-17T07:34:00.005-06:00

According to the SEC's instructions for Form 10-Q, AEHI's latest quarterly report, for the period ending March 31, 2011, should have been filed on May 16th:

A quarterly report on this form pursuant to Rule 13a-13 or Rule 15d-13 shall be filed within the following period after the end of each of the first three fiscal quarters of each fiscal year, but no report need be filed for the fourth quarter of any fiscal year:
a. 40 days after the end of the fiscal quarter for large accelerated filers and accelerated filers (as defined in 17 CFR § 240.12b-2) ;and
b. 45 days after the end of the fiscal quarter for all other registrants.

Here we go again.

Wasn't an agreement by AEHI and CEO Don Gillispie to comply with the securities laws part of the bargain by which they regained access to the cookie jar?

Update 7:30 AM: While they're busy not preparing required reports to give investors the information they need to make intelligent decisions, the staff at AEHI's Interplanetary Headquarters apparently does have the time to create yet another of their bullshit-laden puff pieces in an attempt to help the sagging stock price:

AEHI Subsidiary, Green World Water(TM), Invited to Algeria with U.S.-Algeria Business Council

Alternate Energy Holdings, Inc. (OTCQB:AEHI; www.aehipower.com) announced today that AEHI subsidiary Green World Water(TM) has been invited as one of just 30 companies to travel to Algeria to discuss potential partnerships with high-ranking government officials and international industrialists in Algiers and Oran. The trip is part of the U.S. Algeria Business Council, of which Green World Water has been a member since 2010.

Here we go again.

And Again.

UPDATE 10:36 AM: AEHI Just filed another "NT" ~~late filing~~ lame excuse form 10-Q:

They have time to try to pump sunshine up our asses, but they don't have time to fulfill their obligations to shareholders in a timely manner. Just the thing everyone looks for in a competent CEO, don't you think?

Notification of inability to timely file Form 10-Q

PART III - NARRATIVE
State below in reasonable detail the reasons why Forms 10-K, 20-F, 11-K, 10-Q, 10-D, N-SAR, N-CSR or the transition report or portion thereof could not be filed within the prescribed time period.

The Registrant is unable to file the subject report in a timely manner because the Registrant was not able to timely compile the subject report without unreasonable effort or expense. The Registrant fully expects to be able to file within the additional time allowed by this report.

Let's break that down:

1. The SEC requires the Registrant (AEHI) to state in reasonable detail the reason why the report could not be done on time.

2. The Registrant's "reasonable detail" of the reason is this:

We couldn't file the report on time because we couldn't compile the report on time.

Is that reasonable detail?

Is this kind of shitty work product what one would expect of a CEO with "45 years of experience?"

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Dude Book Review: Three Cups of Deceit

2011-05-05T10:55:00.000-06:00

Jon Krakauer's new article/e-Book Three Cups of Deceit: How Greg Mortenson, Humanitarian Hero, Lost His Way, has some very interesting tales of Mortenson's misuse of funds, misuse of trust, and an aversion to being held accountable for his actions while claiming to build schools in Afghanistan as described in his book Three Cups of Tea. Page 68 has an analysis which will sound all too familiar to followers of the AEHI saga: (emphasis added)

"During the past several months, as I came to grasp the magnitude of Mortenson’s deceit, I felt ashamed at being so easily conned. How could those of us who enabled his fraud—and we are legion—have been so gullible? Ted Callahan attributes the uncritical acceptance of Mortenson and his shtick to the seemingly endless war raging in Central Asia. “The way I’ve always understood Greg,” Callahan reflects, “is that he’s a symptom of Afghanistan. Things are so bad that everybody’s desperate for even one good-news story. And Greg is it. Everything else might be completely fucked up over there, but here’s a guy who’s persuaded the world that he’s making a difference and doing things right.” Mortenson’s tale “functioned as a palliative,” Callahan suggests. It soothed the national conscience. Greg may have used smoke and mirrors to generate the hope he offered, but the illusion made people feel good about themselves, so nobody was in a hurry to look behind the curtain. Although it doesn’t excuse his dishonesty, Mortenson was merely selling what the public was eager to buy."

The book is a great read- it is filled with many, many more specific examples which have an uncanny similarity to AEHI's antics over the past couple of years.
The Dude recommends.

Annual Report Highlights, Part II: Employee Reductions, Don's House Now An Executive Office and Slumber Party House, Land Price Up 67%!

2011-04-09T10:15:00.000-06:00

After getting busted by the SEC, Alternate Energy Holdings, Inc. has made a few changes in how they report certain items in their Annual report. Highlights below:

Downsizing:
2009 Annual Report:
Employees
The Company and its subsidiaries have 15 full-time employees. In addition, nine officers and directors provide certain services dedicated to current corporate and business development activities. In the future, the officers will devote services on a full-time basis and six independent directors will serve part-time up to ten hours per week.

2010 Annual Report:
Employees
As of March 31, 2011 the Company and its subsidiaries have 7 full-time employees. In addition, because we are an early stage company, we also retain at any given time the services of five to ten third party contractors or consultants, including our CEO, who provide management, engineering, surveying, construction and other services in support of the project and our other business units.

Fix the double-dipping by reclassifying the house:
2009 Annual Report:
Item 2. Properties
The Company’s operations are principally located at 911 E. Winding Creek Dr., Suite 150, Eagle, Idaho 83616. The Company currently pays $1,300 as monthly rent for the use of this office. Once the construction of the Idaho Energy Complex is completed, the plant will become the Company’s primary facility.

2010 Annual Report:
Item 2. Properties
The Company’s operations are principally located at 911 E. Winding Creek Dr., Suite 150, Eagle, Idaho 83616. The Company currently pays $2,000 as monthly rent for the use of this office which is renewable annually. Once the construction of the Idaho energy complex is completed, the plant will become the Company’s primary facility. The Company also rents a 4,000 square foot home in Eagle, Idaho, at a current rental of $3,000 per month. This location is used as additional office space by Company executives and for lodging and meetings when third parties are visiting the Company from out of town. Any personal use of the home by any Company executive is treated as additional compensation to such executive.

That would appear to be the house featured in the exhibits to the SEC complaint- the house the company was paying for while Don received a housing allowance at the same time.
Conveniently, the company now tries to claim it is an additional corporate office.

Ada County Assessor's file on 2554 N Saddle Mountain Way

See the "Zone Code: R1 in the image above? That creates a problem with the company using that house as a business or professional office: it's a prohibited use in a residential zone, according to the City of Eagle Zoning table. From "how to read the table:"
To determine in which district a specific use is allowed:

A. Find the use in one of the land use groups;

B. Read across the chart until either "P" or "C" appears in one of the columns;...if no letter appears the use is prohibited.

Going down the list, we see commercial offices (business and professional), hotels, motels, "professional activities", circuses, laundries, clubs or lodges- none of those are permitted uses in a residential zone, or on property zoned R-1 as the property at 2554 N. Saddle Mountain is. So, if the house is being used primarily as an office for a commercial enterprise, it is a zoning violation. Otherwise, it's just Don's house.

Site Land price increases by Ten Million Dollars:
2009 Annual Report:
The Site
After a three-year search, the Company has, through Idaho Energy, located a primary site (the “Site”) in Payette, Idaho that will cost approximately $15.0 million, including the acquisition of water rights. This location is well suited for the licensing, construction and development of a nuclear power reactor.

2010 Annual Report:
The Site
After a three-year search, the Company has, through Idaho Energy, located a primary site (the “Site”) in Payette, Idaho that will cost approximately $25.0 million, including the acquisition of water rights. The Company believes this location is well suited for the licensing, construction and development of a nuclear power reactor.

2009 Annual Report
Land Purchase Agreement
There is an agreement between the Company and the current site owner for the purchase of the land (the “Land Purchase Agreement”) and a draft agreement for the water rights and additional land, which is expected to be executed as a final water rights agreement by the end of March 2010. Once completed, the agreement will transfer title to Idaho Energy upon constructive receipt of an approximately $5.0 million cash payment for the land plus $10.0 million for additional land with water rights.

2010 Annual Report
Land Purchase Agreement
There is an agreement between the Company and the current site owner for the purchase of the land (the “Land Purchase Agreement”) and an agreement for the water rights and additional land for backup site. Once completed, the agreement will transfer title to Idaho Energy upon constructive receipt of an approximately $5.0 million cash payment for the land plus $20.0 million for additional land with water rights. A 4% deposit was previously paid to hold the land for up to twelve months, which was subsequently extended for an additional twelve months to through the end of 2011.

Cost of Overseas Operations quadruples:
2009 Annual Report:
The Company estimates the cost of operation for its four corporate subsidiaries will be approximately $750,000 per year.
2010 Annual Report:
The Company estimates the cost of operation for its four corporate subsidiaries will be approximately $3,000,000 per year excluding phase 1 of the Project.

Whoops, there goes a hundred grand up in smoke:
2009 Annual Report:
At December 31, 2009, the Company had a $100,000 deposit held in the escrow with Perkins Coie to fund a potential joint venture project to develop and manufacture a hybrid engine in China.

2010 Annual Report:
Deposit represented monies held in escrow for a potential joint venture project that will develop and manufacture a hybrid engine in China. The funds were released from escrow and replaced with a note receivable that was deemed to be uncollectible and of no value at December 31, 2010.

Who? Never Heard of Her: Scrub, scrub, scrub!
2009 Annual Report:
Jennifer Ransom, Senior Vice President of Administration and Corporate Secretary
(The Key Senior Executive Vice President's name appears thirteen times in this report)

2010 Annual Report:
Jennifer WHO? The Former Key Senior Executive Vice President's name now appears only once, listing her in a table as "Jennifer Ransom, owner of 5% or more" with the incredible seventeen million shares she received for what the company now claims is really expensive office help.

More in another post.....

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Alternate Energy Holdings' Annual Report Filed: $19.575M Cumulative Net Loss, Loses 38K On Energy Neutral Home, Company's "Internal Controls Not Effective Due to Material Weaknesses"

2011-04-06T16:37:00.002-06:00

Alternate Energy Holdings, Inc., today finally filed their Annual Report, SEC Form 10-K, for the period ending Dec 31, 2010.
Among the highlights:
For the period, still zero revenue, and a cumulative loss pushing twenty million dollars:

Built an "Energy Neutral Home" and lost 38K, almost as much as they spent on cruises and travel:

But the really interesting part was the company's admission of their shitty control and recordkeeping:

Direct quote from page 35 of AEHI's SEC Form 10-K"

"A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. As a result of this evaluation, we concluded that our internal control over financial reporting was not effective as of December 31, 2010 because of the material weaknesses set forth below.

The following is a summary of our material weaknesses as of December 31, 2010:

Appropriate Documentation Not Retained

Controls established to obtain proper authorization and documentation of expenditures, valuation and recording processes for shares issued for services were not operating effectively. Documentation for some shares issued for services was missing.

Also, there are transactions recorded for services provided where an invoice to substantiate the expense could not be located. Invoices have not been retained to support expenditures reported as required by the Company.

As of February 2011, the Company has put an internal policy in place whereas the CFO is now pre-approving all invoices and stock issuances with the proper support of the CEO's approval of the expenditure. As of March 2011, the Company is providing a monthly listing of any new stock issuance to the Board of Directors for their review and authorization. Due to the current SEC investigation we are also providing the SEC, on a monthly basis, all expenditures over $2,500 with the proper documentation to support the expenditure."

So, NOW (As of March, 2011) they are doing what they should have been doing all along?

Why did it take SEC involvement to get them to do what any legitimate company should have been doing from the outset?

.

The Dog Ate Our Homework (Again!): AEHI Annual Report Deadline Missed; Files "Notification of Inability to Timely File Form 10-K " Instead

2011-04-01T14:37:00.001-06:00

Alternate Energy Holdings' annual report, SEC Form 10-K, was not filed when due on March 31st. A day later, AEHI files this interesting notice: (emphasis added)

PART II - RULES 12b-25 (b) AND (c)

If the subject report could not be filed without unreasonable effort or expense and the registrant seeks relief pursuant to Rule 12b-25(b), the following should be completed. (Check box if appropriate)

[X]

(a)

The reasons described in reasonable detail in Part III of this form could not be eliminated without unreasonable effort or expense;

[X]

(b)

The subject annual report, semi-annual report, transition report on Form 10-K, Form 20-F, 11-K , Form N-SAR or Form N-CSR, or portion thereof, will be filed on or before the fifteenth calendar day following the prescribed due date; or the subject quarterly report or transition report on Form 10-Q or subject distribution report on Form 10-D, or portion thereof will be filed on or before the fifth calendar day following the prescribed due date; and

PART III - NARRATIVE

State below in reasonable detail the reasons why Forms 10-K, 20-F, 11-K, 10-Q, 10-D, N-SAR, N-CSR or the transition report or portion thereof could not be filed within the prescribed time period.

The Registrant is unable to file the subject report in a timely manner because the Registrant was not able to timely compile the subject report without unreasonable effort or expense. The Registrant fully expects to be able to file within the additional time allowed by this report.

Hmmm. Too much trouble to file their reports on time? "Unreasonable effort or expense" would be required to be a fully reporting company that welcomes scrutiny and has always filed its reports on time before?

Like this doozy: "AEHI is in compliance with all reporting to the SEC and is designated as fully reporting, and would not be trading on OTBQX if not." Or: "The only filings that were late was when we changed attorneys earlier this year and couple form 4s I think were late but in the required quarter we never have we missed an important filing like a 10Q or 10K…that summarize happenings and we use lots of press releases to keep people informed…"

Sure, Don. Sure.

.

Pacer Today: SEC vs AEHI Litigation Plan Filed; Proposed Trial Start Dates June -July 2012

2011-03-30T18:02:00.000-06:00

This just in from PACER today:
The parties have filed a "litigation plan" pursuant to an order issued on March 15, outlining several Key Milestones, indicating this will go on for a very long time- if it comes to trial at all, it won't be until June 1st at the earliest:

The "Pre-ADR Discovery" date and the "ADR Conference" of July 8th are significant in that "ADR" means Alternative Dispute Resolution- mediation which could lead to some sort of a settlement. Thus, the case could be settled as early as August 2011, but if it goes to trial, not until well after June, 2012.
The case has also been referred to US Magistrate Judge Ronald Bush:

And so it goes.

.

Got a Letter in the Mail: the Vultures are Circling

2011-03-30T10:47:00.001-06:00

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."

Bullshit!

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.

AEHI on the Business Effect of Global Nuclear Incidents

2011-03-13T12:59:00.002-06:00

From Alternate Energy Holdings, Inc's "Nukes are the Answer" article, Sept 21, 2010:

"You don't have to look far beyond the recent news to see the dangers and costs of the energy we depend upon."- AEHI CEO Don Gillispie

Very well stated, Don.

How will the recent disasters in Japan affect AEHI's business?

One answer can be found in the Company's own annual report, the 2009 10-K, on page 19:

"A nuclear incident anywhere in the world could revive nuclear plant opponents."

"While there is a global renaissance underway for nuclear energy, its current popular support could evaporate quickly. It has been 30 years since the Three Mile Island accident and 20 years since Chernobyl. These events are gone from the memory of most citizens, but a new incident could reawaken old fears and raise public opposition. Public opposition could lead to political opposition and failure of regulatory agencies to grant necessary permits and licenses."

Now that we have seen exactly what happened to Japan's nuclear power plants after an earthquake in excess of magnitude 8, it is entirely possible that current nuclear plant safeguards and assurances will be called into question and possibly reevaluated to insure they are as safe as has been continually claimed.

Meanwhile, public and political support will probably evaporate quicker than the seawater being poured on the melting reactor cores in Japan.

.

AEHI's Stewardship of Unfrozen Assets: A Great Big Raise for the CFO

2011-03-01T12:37:00.001-07:00

This just in from the "No Way! Shut UP! They did NOT!" department:

Alternate Energy Holdings, Inc. Filed an SEC form 8-K today announcing a new way to get rid of those remaining millions in the bank: a big fat raise for the Chief Financial Officer, from $0- to $180,000 per year.

On February 23, 2011, the Board of Directors of Alternate Energy Holdings, Inc. (the “Company”) approved an increase in the salary of Rick Bucci, the Company’s Chief Financial Officer, from $0 per month to $15,000 per month, to be retroactively effective as of February 1, 2011.

To summarize, AEHI will pay:

CEO Don Gillispie's salary: $40,000 per month, $480,000 per year (still no 8-K on that, by the way)
CFO Rick Bucci: $15,000 per month, $180,000 per year.

to administer a company with a total revenue of $0.00 for four consecutive years.

Kind of makes one wonder what the Key Senior Executive Vice President is making now, doesn't it?

Whatever happened to "These fine men, working without compensation"?

Due out March 31: What will probably be the most interesting annual report (10-K) in AEHI history. Stay tuned!

PACER Today: AEHI Files Answer To SEC Complaint

2011-02-25T18:17:00.002-07:00

Alternate Energy Holdings, Inc. today (February 25th) filed its answers to the SEC Complaint, which, according to PACER (as of today) was actually due on February 10th.
In it, AEHI demands a jury trial, and denies most of the allegations in the complaint.
Full 14-page Document is here. Not much to learn without having alongside the original SEC complaint filed December 16, here.

Quick summary of AEHI's response: that River in Egypt.

Denial.

Timing Is Everything: AEHI CEO Don Gillispie, His "Whining Shareholders," and "A Big Mess"

2011-02-23T07:41:00.013-07:00

Understanding the full meaning of some of the recently unsealed emails becomes easier when the rest of the pieces are put together: filing dates, closing prices and the like.

Here is a late-filed SEC Form 4, to get things started. AEHI CEO Don Gillispie was awarded 3,000,000 shares of stock for services.

Note this award, and the subsequent eyewash stunt purchase of 37,500 shares, which put his total holdings at 42.6 million shares. Here's what someone who sure sounds a lot like Don once said when questioned about his stock award compensation:

"Stock is not salary...there is no W-2 or withholding. Also, his stock is restricted and he can only sell limited amounts...looking at the AEHI situation doubt he could live on it if he had too."

On June 24, 2010, the closing price of AEHI stock was .50, making this stock award worth $1.5 million. It would not be until this SEC Form 4 was filed on Sept. 29, 2010, three months after the fact, that shareholders would learn about this lavish executive compensation.

Another point to remember is that stock is not always a fungible good- these three million shares all have a specific acquisition date- and they were restricted. But the 39 million he had before the award all had different acquisition dates also- and many were eligible for the restriction to be lifted. Thus, Don would, through this award, be able to dump 3M shares without affecting the total amount of his holdings- he's awarded 3M, then files to sell 3M- no change.

Let's take a closer look at what happened before and after those three months, now that we have some emails to help illuminate our perspective. And sunshine is a great disinfectant, is it not?

May 20, 2010: AEHI issues this odd-sounding press release:
AEHI Provides Update to Investors on Trading Status
Remains in Full Compliance with All SEC Reporting Requirements

BOISE, IDAHO - May 20, 2010 - Alternate Energy Holdings, Inc. (OTCQB: AEHI) today announced that its common stock temporarily ceased quotation on the Over-the-Counter Bulletin Board (OTC BB), but continues to quote on the OTCQB. AEHI has been, and remains, in full compliance with all SEC reporting and filing requirements.

The Company believes the change in status with regard to the OTC BB was due to the actions of a small Idaho market maker (Pennaluna), who had initially filed the Form 15C-211 on behalf of the Company, and decided to no longer provide a 'bid/ask' quote on the OTCBB platform. Unfortunately, Pennaluna did not notify the company as would be expected.

"It is unfortunate we did not have prior notice to this market maker's decision, however, due to our listing on the OTCQB, we do not anticipate this change will have an effect on our investors' ability to buy or sell shares. In addition, there are numerous market makers currently making markets in AEHI stock on the OTCQB, and we are in discussions with several of these larger firms to submit the required regulatory filings in order to resume dual quotation on the OTC BB," said Don Gillispie, AEHI CEO. "One of our near term goals is to list on a senior national exchange, and this development will not affect our pursuit of this goal."

May 21 2010: Key Senior Executive Vice President Jennifer Ransom emails broker to initiate sale of stock, with intriguing reference to "a big mess" and "innocent but big mistakes":

June 3, 2010: Key Senior Executive Vice President Jennifer Ransom files a planned sale of 500,000 shares.

June 5, 2010: Don presses broker to expedite the sale of Jennie's shares, stating "...it has an impact on the company if delayed....not to be repeated"

June 14, 2010: Presses lawyer for paperwork on Jennie's apparently still incomplete stock sale, referring to an "urgent need for the funds.":

June 24, 2010: Gillispie awarded 3 million shares (worth on that date $1.5 million) , bringing total stake to 42.6M shares.

June 28, 2010: Four days after getting his own 3 million shares, Gillispie directs broker to "reactivate" Ransom's sale, with "careful instructions not to drop the price (selling near the ask)" Shades of the 2007 emails.

July 1, 2010: Six days after awarding AEHI CEO Don Gillispie $1.5 million worth of AEHI stock, the company approves his new salary: $40,000 per month, or $480,000 per year. Undisclosed to (the likely to whine about such things) stockholders until revealed in SEC complaint filed in December.

July 14, 2010: In an email with the subject "Selling Jennie's stock," Don mentions a need to "give you [his broker] my stock soon..."

July 18, 2010: Don directs broker to stop selling Jennie's stock and start on Brian Webb's:

August 9, 2010: AEHI share price hits $0.90 for the first time since the May price spike brought about by Nick Hodge's infamous May 2010 "unauthorized photo" pump piece.

August 10, 2010: Gillispie files to move from restriction 3M shares a planned sale, of 7% of his holdings.
Share price hits $1.00 that day, but closes at .78. A 3M share stake over those two days fluctuates in value from $2.3 to $3 million.

August 13, 2010: AEHI CFO Rick Bucci writes letter to UBS Mortgage verifying CEO Don Gillispie's new salary:

August 23, 2010: Ransom files yet another planned sale, 500,000 shares.

September 3, 2010: Clearly in response to reactions to the filing of his planned sale, Gillispie directs broker to "Please return all to restricted. The stockholders are whining."

September 8, 2010: Despite his recognition of "whininng" stockholders, AEHI CEO Don Gillispie gives his broker another nudge, hoping the broker is "selling Jennie's shares in this hot market period...thanks":

September 29, 2010: AEHI finally files the SEC Form 4 covering Don's 3M share award of June 24, as well as his eyewash stunt purchase of 37,500 shares at 80 cents.

September 30, 2010: Company issues infamous press release:
BOISE, Idaho, September 30, 2010 - Alternate Energy Holdings, Inc. (OTCBB: AEHI; OTCQB: AEHI) (www.aehipower.com), a developer and marketer of innovative clean energy sources based in Eagle, ID today noted that several members of the board and the senior management team recently purchased shares of AEHI, including Don Gillispie, CEO.
"Recent insider purchases and the fact that neither I, our CFO, board members, nor any officers who have day-to-day line responsibilities for running the company have sold a single share since the Company's inception speak to our strong confidence in the outlook for the business," said Don Gillispie, CEO of Alternate Energy Holdings. "Near-term, we anticipate two important catalysts for our business: the anticipated final local approval of our nuclear power plant site in Payette County; and the potential sale of a nuclear desalination plant to one or more overseas buyers."

December 14, 2010: SEC Suspends trading of AEHI Stock.

December 16, 2010: Send Lawers, Guns, and Money: The Shit Has Hit the Fan

February 22, 2011: Investor and AEHI Facebook Page fan expresses concern about lack of recent company info. In response to another's suggestion that he call the company, he reports,

"down another .2 cents today. No news,no nothing. Very frustrating in my opinion. I guess there waiting till it goes to 0 to shed some news. This is not right to us investors. Will be selling my 50,000 shares ASAP. Good luck to the rest of you. And Mike, I got the run around when I called." Current screenshot below, as the company is notorious for removing any posts that dare to question, or sound like "the shareholders are whining." Ha.

Welcome to the last three years of trying to get anything resembling a straight answer out of these clowns.

Coming Soon From AEHI Truth: Fun New Board Game!

2011-02-22T17:30:00.001-07:00

AEHI Truth announces a soon-to-be-released, fun new board game:

Fun for all ages! Simple instructions; what few rules there are need not be followed to win!

Players race to help CEO Don and his Key Senior Executive Vice President acquire jewelry, cruises, cars, houses and cash as they navigate a purely imaginary land of zoning hearing hazards, pesky anti-nuke protesters, and busybody Federal Regulators in their quest for fame, fortune, and fantasy fission!

Appropriate for all ages and intellects- no reading comprehension required- so simple, even County Planning and Zoning Commissioners, Idaho Legislators, naive day-traders, small children and some pets can play.

Expected release date: mid-March 2011.

Thomas Jefferson on AEHI Truth

2011-02-20T17:57:00.000-07:00

Found an article containing the quote below, which describes what this blog has been about since its inception:

In Defense of Mockery
by Iris Vander Pluym

"We should always attack stupid ideas, regardless of how nice a suit the proponent is wearing at a press conference. Mock. Point. Laugh. State facts. Satirize. Call a lie, a lie. Mock again. Laugh again. Point to facts again. Repeat. Repeat again. Repeat yet again, until everyone thinks twice before ever uttering anything so destructive, ignorant and idiotic in public."

"Ridicule is the only weapon which can be used against unintelligible propositions.". -Thomas Jefferson

"Someone has to hold them accountable"- AEHI CEO Don Gillispie

Documents Unsealed in SEC's AEHI Case: CEO Don Gillispie Complains "The Stockholders Are Whining"

2011-02-18T17:07:00.003-07:00

The SEC today filed notice in its still-pending case against Alternate Energy Holdings, Inc, its CEO Don Gillispie and Key Senior Executive Vice President Jennifer Ransom that several exhibits initially filed under seal in December do not actually require sealing.

Here then, courtesy of PACER today, are those documents, for your perusal:

What Don really thinks of investors who dare to question him:

Document 7 has the interesting emails from Don about propping up the stock price:

Document 13 has more emails of Don and Jennie, and this announcement that Don (remember that fine man "working without compensation?") has just gotten a raise:

The rest of the documents are below:
Document 8
Document 9
Document 10
Document 12

AEHI Case Update: February 14th SEC Litigation Release

2011-02-16T08:57:00.002-07:00

According to the SEC's Litigation Press Releases webpage, the SEC issued a press release on February 14th about the still-pending civil litigation against Alternate Energy Holdings, Inc:

That last sentence is very important: "The court has not ruled on the merits of the SEC's action. The parties are engaged in pre-trial discovery with a trial date remaining to be set."

This is far from over, and will almost certainly get much more interesting before it gets boring again, apart from these brief lulls in activity.

PACER Today: Friday's Stipulation becomes Monday's Order

2011-02-14T10:59:00.002-07:00

Judge Lodge today issued and signed the written order unfreezing (liquefying, then?) AEHI's funds, "...during the pendency of this litigation..." (emphasis added) Which means the somewhat heavy-set woman has not delivered her song. Or, as Yogi Berra would say, "It ain't over 'til it's over." The point here being: this case is far from over.

Also significant in the order is paragraph after paragraph (five paragraphs to be exact) effectively telling AEHI CEO Don Gillispie and his Key Senior Executie Vice President, "even though you say you didn't do any of this stuff, stop doing it and don't do it again.":

"1. Defendants Alternate Energy Holdings, Inc. (“AEHI”) and Donald L. Gillispie,and their respective officers, agents, servants, employees and those persons in active concert or participation with any of them, who receive actual notice of this Order, by personal service or otherwise, and each of them, agree that they shall not, in the offer or sale of any securities, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, directly or indirectly :
A. employ any device, scheme, or artifice to defraud;
B. obtain money or property by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading;
or
C. engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser;..."

and so on and so on, for four more paragraphs.

Hmmm. Why would a legitimate enterprise, completely above board and with nothing to hide need to be Ordered to do these things by a Federal Judge?

And why would a perfectly legitimate and above board company have to submit a monthly accounting requiring such specific definitions of transfers, sales, exchanges......here, see for yourself:

AEHI CEO Don Gillispie's Whinypants Sequel: The Affidavit

2011-02-12T17:50:00.002-07:00

Back before all the new shit came to light, AEHI CEO Don Gillispie wrote a pathetic whinypants letter to The Idaho Attorney General, the Governor, and a bunch of other elected officials, one of which was a recipient of Don's generosity, in the form of a $2625 campaign contribution.

That went well, as we know now.

In AEHI's January 14th response to the Order to Show Cause, Don filed a 46-page reprise to his initial foray into the genre, taking the whinypants letter to depths of pathos heretofore unseen. New to this version of the tale are these little snippets which caught the eye of the Dude: (pages 17 and 18)

No way, man! Really? The AEHI Truth Blog is named in the Federal Documents? The Dude is named in the Federal Documents? Wow- that really ties the story together, don't you think?

The Dude's reaction to this new shit was caught on film here.

Q: Well?
A: No. For the umpteenth time, Don, No. The Dude is not either of the guys you keep blaming, or the "anti-nuke" group you sued.

More analysis on the WhinyPants affidavit to follow.

SEC vs. AEHI: Stipulation from February 3rd Show Cause Hearing

2011-02-11T17:36:00.001-07:00

The proposed stipulation ordered by the Judge after the oral argument in the February 3rd hearing was filed today: (just a sampling of the pages from the link)

Why should they have to be told not to violate various securities laws?

AEHI vs. SEC Case: No Responses Yet (8:15 am)

2011-02-11T08:15:00.003-07:00

As of 8:15 AM, Feb 11, 2011, the US District Court PACER system does not list any response from Alternate Energy Holdings, Inc. to the Civil Complaint filed by the SEC on December 16, 2010: (see "date of last filing," "deadlines" and the time stamp on the receipt below)

Here is a copy of the Judge's order (paragraph 5 below) specifying February 10, 2011 as the due date for AEHI's responses:

There are a number of reasons this could be the case: Maybe they are working on a settlement. Maybe the response was of such a volume that it has not all been scanned and entered yet. Or maybe the company credit card is run up with $2499 cruise purchases for everyone and no one thought to, like, maybe, file the documents and stuff.

On the previous deadline for the defendants, January 14th, the Dude checked PACER at about 8PM, saw no new filings, and went back to drinking some most excellent beer. But when he awoke early on January15th, what to his PACERing eyes should appear, but 8 new documents, and all very clear! (sorry)

Not the case this morning, however. And so we shall wait.

Departure of Director Duo: Vote of (no)Confidence?

2011-02-10T09:53:00.003-07:00

It can get a little tiresome reading all the bullshit in AEHI's press releases, but it does have its rewards. Last week's release, which gloated about their renewed access to the corporate cookie jar, also contained this little gem:

"Shortly after funds were frozen, Don Gillispie and Jennifer Ransom temporarily stepped down from their respective roles as CEO of AEHI and President of Energy Neutral™. It is anticipated following a vote of confidence from the AEHI Board of Directors, expected early next week, that both Gillispie and Ransom will resume their former positions."

"resume their former positions?" Ummmm..... maybe they meant "resume the duties of their former positions?" Still, ummmmmm......never mind, the Dude digresses. Back to the topic:

Jesus! Not another board meeting!
You think Board meetings are bad? Wait 'till we get our Federal Subpoenas!

That was Friday, February 4th. "Early next week" is now this week, specifically, it was Monday, Tuesday and maybe half of Wednesday, February 7, 8, and 9. Today is Thursday, Februrary 10th. It's now late "next week," and AEHI has not yet issued one of their (in)famous press releases on the "vote of confidence" that they anticipated "early next week".
What's more telling though, is what did come out of the Board of Directors early this week: the abrupt resignations of two of them- Leon Eliason and Greg Kane. Given all the new shit that has come to light, the "personal reasons" claim in the 8-K doesn't quite ring true.

While the Dude was not invited to attend the board meeting, it was a simple matter to reconstruct how it likely went down on Monday:

(Note: the following script is pure fiction. your results may vary)

Meeting Chair: Ok, let's call this meeting to order. Item One; restore Super Awesome CEO Don Gillispie and Key Senior Executive Vice President Jennie Ransom to their cool jobs and give them back the awesome corporate credit cards. All those in favor say, "aye".

Soon-to-Quit Director 1: "Are you people high?"

Chair: You're supposed to say "AYE", not "high". Now, all in favor of giving Don and Jennie their awesome jobs, houses, cars, and credit cards back say AYE.

Soon-to-Quit Director 2, (aside to Director 1): This is unbelievable. If they're not high, then we must be.

Chair (angrily, in an effeminate and somewhat high-pitched voice): STOP saying HIGH! You're supposed to say, "AYE," NOT "high!" Now say "AYE" just like we ALWAYS do! Just like Don said we're supposed to, or we'll get in trouble. SHHH, here he comes!

Directors 1 and 2, exhibiting a level of intelligence not seen since the departure of Director James Taylor in 2008: Screw this shit, we quit.

Director 1: Say whatever you idiots want about why.
Director 2: And you are all high. Neener.

Director 1, to Director 2: Let's go get a beer.
Director 2: Sounds great! Let's call the SEC- maybe we can cut a deal.
Director 1: Then we can go fishing. For purely personal reasons!
Director 2: Hahahaha! Personal Reasons! Hah! That's a good one!

-end-

Birds of A Feather, Part V: AEHI Director Duo Flew The Coop

2011-02-09T12:34:00.010-07:00

This just in from an SEC filing today:

"On February 7, 2011, Alternate Energy Holdings, Inc. (the "Company") accepted the resignations, effectively immediately, of Mr. Leon Eliason and Mr. Gregory Kane from the Board of Directors of the Company. Mr. Eliason and Mr. Kane have each served on the Board of Directors of the Company since the Company’s inception in 2006. Both Mr. Eliason and Mr. Kane resigned due to personal reasons and not over any disagreement with the Company’s Board of Directors or its management.

The Company intends to search for potential candidates to appoint as new directors of the Company to fill the vacancies created by Mr. Eliason’s and Mr. Kane’s resignations."

Here's a draft ad to help the company fill these vital positions so Don and Jenny can get that company credit card up and running again:

Dynamic Nuclear Startup Seeks Directors
Fast Growing, fast spending, and fast talking nuclear company seeks to fill two positions on the company board of directors. Successful applicants will pretend to exercise corporate oversight while ignoring large wheelbarrows of cash, jewelry, cruise tickets, and post-it notes being shoveled into Maseratis, Range Rovers, and Platinum Ford F150(Compensating Edition) Pickups. Candidates should be blind, deaf, and functionally illiterate to avoid uncomfortable situations involving angry shareholders, regulators, and SEC investigators. Board members receive as compensation these handsome stock certificates which are also suitable for framing. Speaking of framing, the CEO didn't do it and you shouldn't ask. And the last guys left because they wanted to go fishing more, we swear. And don't forget, we have the fifth amendment, just in case you might need it in the future.

Submit resumes to: That hastily erected tent on the street corner staffed by ~~a pretty blond face~~ our Key Senior Executive Vice President for Streetside Resume Booth Staffing:

Key Senior Executive Vice President for StreetCorner Resume Tents Jennifer Ransom and (now former) Chief Press Release Writer Martin Johncox work over a crowd with promises of jobs in a nonexistent plant.

Key Senior Excecutive Vice President for NonExistent Job Resume Submissions Jennifer Ransom accepts resume for nonexistent job in nonexistent plant. Note nearby purse brimming with cruise tickets, keys to Range Rover.

SEC vs AEHI Case Update: Amicus Cuckoo Briefs; Don Gillispie, Jennifer Ransom, and AEHI's Responses Due Tomorrow

2011-02-09T10:58:00.003-07:00

Alternate Energy Holdings, its CEO Don Gillispie, and Key Senior Executive Vice President Awaiting Reinstatement and Access to Company Credit Card Jennifer Ransom's Responses to the SEC Complaint are due tomorrow, February 10th. They will be posted here as soon as they are available, with analysis and snark following shortly thereafter.

In other case news:

All Rise! Hear Ye! Hear Ye! Oyez!, etc., etc....
Comes now ~~some Whack Job~~ another typical AEHI shareholder, filing two more hilarious amicus ~~curiae~~ cuckoo briefs (here and here)with the US District Court in the SEC's case against AEHI. These briefs were filed February 7th and 8th by someone who claims to hold the "Office of the Constitutional Law Advocate for the People," weighing in from his Kangaroo Court Compound in Pennsylvania. In his briefs, "Constitutional Law Advocate" (and owner of 30,000 AEHI shares) Jesse ~~Matlock~~ Matlack Townsley, Jr. claims the SEC itself is unconstituional and urges the court to nullify it and its actions, or "..the People will be forced to take action to alter or abolish this National Government directly, which could lead to major confrontations and serious bloodshed."

Copies of amicus ~~curiae~~ cuckoo briefs

Wowsers! He strenuously objects to the SEC case!

What would drive ~~this poor shareholder~~ our learned constitutional scholar to file such a drastic and inflammatory brief? (Other than those 30,000 shares, that is.) Perhaps he has it in for the SEC after his little brush with them in 1995. Or maybe it's because of this other little SEC dustup in 2005, related to this brouhaha with the National Futures Association. (hearing results here). Here are some excerpts, which will sound strangely familiar to those who have been following AEHI all along:

Verrry Interesting.

Here is a posting signed by a "Jesse Townsley" discussing how (like Don and his Dry Reactor Design) he created the "profession" of "Constitutional Law Advocate" out of thin air (and a bit of stretching the Declaration of Independence):

Posted by Jesse Townsley on 8/31/2010 7:11:28 AM
If we are waiting for the citizenry to wake up and become truly patriotic Americans in the mold that was originally created by our founding documents, I am afraid we will be waiting until hell literally freezes over.
The fact is that the hearts and minds of most Americans leans to how much largesse they can derive from the public treasury, and freedom, liberty, and personal responsibility are subjects quite foreign to their belief systems.
However, we are still technically a constitutional republic, with three departments of government: i.e. executive, legislative, and judicial, each of which is supposed to watch the others closely for signs of usurpation of powers not granted to them. This responsibility has been shirked by each, and so we have no one in authority who is watching our backs. But, the courts are derived directly from the Constitution, and each judge swears an oath to uphold and defend the constitution. We need to force them to do it.
I have created a new profession which I have named "Constitutional Law Advocate". This is a kind of "super lawyer" who has shunned the present day laws schools in favor of wielding the law of the Constitution as a weapon. While this post was not described in the Constitution per se, its need can be implied from the mandate in the Declaration giving the People the right to throw out any government that does not protect their Rights to Life, Liberty, and the Pursuit of Happiness.
I am currently testing this concept in three lawsuits I have instigated against the Pennsylvania DOT regarding the Uniform Motor Vehicle Code. I believe the Code is illegal because it takes away the right of citizen-drivers to make rational decisions and substitutes the judgment of "law enforcement" in its place. This very action reduces driver responsibility and increases the accident rate, among other evil results. My plan is to force the Judge in the appeals court to accept that he must, under his own oath, pay heed to his responsibility to protect the Rights of the People, and not to protect the power of the government.
I have three cases scheduled to be heard on September 28th. It will be interesting to see how the judge handles my attack on what amounts, at the present time, to a 'kangaroo court'.
Wish me luck!

Verrry Interesting.....

SEC vs AEHI: Green Laser Reviews Analyzes the "Pump"

2011-02-08T06:26:00.000-07:00

A website called Green Laser Reviews has an excellent article on the AEHI stock price. The intro to the article reads:
What’s going on with formerly heavily promoted Alternate Energy Holdings Inc. (PINK:AEHI)?
This former darling of the green energy crowd was suspended from trading last December, with its CEO under SEC investigation for securities fraud.
Responding to numerous reader requests, we’ve reconstructed the rise and fall of the stock… and how it relates to a specific newsletter promotion…
by J. Christoph Amberger, editor, Green Laser Reviews
Baltimore, MD—How come that scams are so obvious? Especially after charges are filed and you have the benefit of 20/20 hindsight…
We reported on the SEC’s crackdown on Alternate Energy Holdings Inc. (PINK:AEHI) back in December, when the stock was suspended from trading.

Read the rest of the article here.

AEHI Asset Freeze Lifted: Company Back in "Business?"

2011-02-04T11:57:00.008-07:00

The ink was barely dry on the Judge's order lifting AEHI's asset freeze when the company sent out another of their classic press releases: "AEHI Back in Business After Federal Judge Releases Company Funds":

Shit! There Goes the Rest of Our Money!

Celebrations are running wild; reports of Limousines with open sunroofs and topless revelers throwing empty Cristal champagne bottles at passers-by are merely unfounded rumors at this time.

Any celebrations may be a bit premature, however.

The original SEC complaint, filed December 16th, sought fifteen actions from the court. The temporary asset freeze was but one of those fifteen, and although that freeze was lifted by the Judge yesterday, the other fourteen are still pending, with answers to that complaint due from the defendant on Thursday, February 10, 2011.

So while the company may claim to be 'back in business,' the fact remains there are fourteen other actions still pending against the company, Gillispie, Ransom, and their LLCs, and it will be six more days before we see what they say in their replies.

Among the remaining fourteen requests for relief: The SEC asks the court to enter orders: "...barring Gillispie from serving as an officer or director of any public company..."(III), "...barring Gillispie and Ransom from participating in an offering of penny stock..."(VI), "...requiring Defendants and Relief Defendants to disgorge their ill-gotten gains..."(IX), and "... requiring Defendants to pay civil penalties..."(X).

It's important to remember that this case is in a very early stage and that none of those very serious requests for injunctive relief have yet been addressed by the court, let alone answered by the defendants.

And what of this "back in business?" "Business," to the average person, implies some sort of transactional commerce, where a company generates some revenue which it eventually turns into profits to be distributed to shareholders via dividends. AEHI, on the other hand, in its own filings no less, clearly states, "AEHI has never had any revenues." Never. Any. Revenue.

They are not "back in business," because they never generated any revenue before. All the salaries, all the trips, all the expenses of the company were coming directly out of the pockets of investors and into the pockets of the recipients of the company's largesse. All the SEC did with the freeze was temporarily halt the massive hemhorraging of investor's cash. They are now more correctly "back to spending investor's money" rather than "business." It will be interesting to see if a company with zero revenue will continue paying its CEO $40,000 per month with investors' money. At least now the investors can take heart that a second set of very large eyes will be examining these expenditures from now until the next hearings on this matter.

Here are copies of the pages of the original complaint:

US Federal Court: Showtime!

2011-02-03T08:52:00.016-07:00

Don helping unload some important charts and graphs that will help show how all this was just a big misunderstanding.

US Federal Building, Boise ID

3:30. Judge orders assets unfrozen, but AEHI must report monthly to SEC any expenditures over $2500. Like trips to China. And they have to comply with all the SEC rules, like, you know, filing reports correctly and on time.

The Dude called this one wrong, but of course the story continues.

2:20. Attorneys have been in with Judge for about 40 minutes.

12:10 Recess till 1:30

12:07 Uh oh. Roth gets a frowny look from the Judge during a question about The Bellagio. Asks Roth whose money was being spent. And make that 18 on the submisso-meter.

11:55. Roth is back up, not more than 5 minutes in and he's already done it. Submit count now 16. He does tell us that Fickes used the word Maserati 5 times. But Roth used it three times. Maserati. Maserati Maserati Maserati. Decided to hell with the seal on exhibits RR and UU, shows us that they are cashier's checks and since he claims the SEC mislabeled them as AEHI checks that somehow makes the SEC case fall apart. Nope.
Make that 17 I-submit-to-yous. Maserati.

11:40. The Judge has looked very interested during the SEC presentation, unlike when the AEHI attorney was talking. Just sayin'.

11:30 shows another email where Gillispie tells a broker to sell 200,000 shares of Ransom's, but emphasizes to the broker to sell no more than 5000 shares at a time so as not to affect the stock price.
SEC Attorney Is Mark Fickes, who by the way, has said "I submit to you" only once this half hour.

11:15 Skewering them on the contradictory claims about Ransom. First the company claims she is a Key Senior Executive Vice President and Big Shot Worthy of Limousine Service, and now that they have been(quoting the SEC attorney)"caught with their hands in the cookie jar," they make self serving claims that she doesn't count as an officer when she made otherwise reportable stock sales.

10:55 Court back in session.
Here comes the SEC attorney Fickes.
And here come all the emails, Don telling someone named Billy to push the stock price up to a dollar, in preparation for press releases. Ooops. 8 emails.

10:56 Recess! Where is the playground?

10:54. Judge asks a question! To Roth: "What are you saying are new SEC allegations in all the new shit?"
Roth: Waaaah!
Ding! Submit counter up to 15.

10:48. How a Federal Judge can pretend to be interested for this long? His boredom is starting to show, as Roth reads already printed case law to him, adding nothing by way of oral argument. Submissive count now 13, three in two minutes alone.
Roth starts whining about all the new shit that came to light last Friday, calls it 'sandbagging'. He knew the deadline. The Dude had enough time to read it all. What does the attorney get paid to do?

10:30 'I Submit to you' count now at 10. Roth talks about the hushed-up and now in arbitration UniStar suit, claiming they will get 5 million.
Finally, an intesting claim about the company by Roth: "They haven't even spent 3 million dollars." Wow.
Note to future lawyers: Don't use a case history named Wanke if you want to be taken seriously.

10:16. Now Roth refers to some checks in sealed exhibit RR, which he will not let the audience see. Claims they are checks for 190,000 that are not AEHI checks, apparently contradicting the SEC. We shall see.

10:10. The Dude didn't come all the way to the Federal Court to hear the AEHI attorney essentially read the response memorandum out loud. Looking forward to the SEC smackdown, which at this point cannot come soon enough. These seats are very uncomfortable.

9:57 Jennie tries tearing up a bit to show the judge how caring she is. Good thing she grabbed some tissues.
Submissiveness count now at 6
The SEC attorneys look positively bored. Wouldn't be surprised to see them start playing FreeCell on their computers any minute.

9:55 OK, he said it again. We will now begin the 'I submit to you' counter with a current guess of 5.

9:54. Roth says 'I submit to you' so many times he can now be called clinically submissive.

9:51 Based on Roth's performance at this point, The Dude is going to call this one for The SEC. Roth is completely unconvincing, and is only repeating what he said in the original response.

9:40 Roth is now falling back on the quibbling words used to describe Ransom's role- first she is a Key Senior Executive Vice President, now they claim she merely helped arrange supplies in the office storage cabinet. Of course, she did that so well she got about a hundred grand a year, just like all other office supply managers, right?

Roth is arguing nothing more than what is already in their previously filed answer. He is claiming there was no 'Pump' committed by AEHI, conveniently ignoring the blizzard of air-filled company press releases about their now-exposed trips to China and other nonsense.

Roth also seems to think this is a zoning hearing- 'every mayor in payette county supports this project'

Roth impresses the Judge by Pronouncing Owyhee as 'oihee'.

Starting out with Richard Roth, who will argue to show cause why the order should not be granted. Then the SEC will reply.

9:30. Here come de Judge!
This ain't a planning and zoning hearing anymore, that's for sure.

9:15 Some random pleasantries amongst attorneys which leads them to guess this will take about 90 to 120 minutes.

Update 9:10 AM: SEC attorneys arrive with a big Box O' Evidence. Perhaps that will outweight the Chart O' Numbers?

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

2011-02-02T12:31:00.012-07:00

The Dude wrote about this contribution right after AEHI CEO Don Gillispie wrote his famous whinypants letter about all the meanies picking on him.

Good Buddies?

Thanks for the $2625.00 , Don!

You're welcome, Raul! The shareholders will never miss it!

Psst- could you get that pesky SEC off our backs? Love Ya!

According to FEC records, AEHI CEO Don Gillispie made two separate contributions to Labrador's campaign, oddly, both on March 24, 2010, and both for the 2010 Primary Election:

Problem is, that looks like $225.00 too much:

How much is the limit? $2,400, According to the FEC:

Contribution Limits
An individual may give a maximum of:
* $2,400 per election to a Federal candidate or the candidate's campaign committee. Notice that the limit applies separately to each election. Primaries, runoffs and general elections are considered separate elections.

And now that it looks like most of Don's money was actually being siphoned off investors, the question now becomes, "When are you going to give the money back, Rep. Labrador?"

Investors, and maybe even the SEC, would like to know.

.

New on PACER Feb 1st: Order Granting Sealed SEC Motion

2011-02-01T10:10:00.006-07:00

When the SEC filed its response memorandum on January 28th, it also filed a Sealed Motion, using sealed exhibits (see Doc. #42 below):

Apparently yesterday, that sealed motion was granted:

Still don't know what that sealed motion says, but will post it as soon as it's available.

Oh yeah- about all those "letters" listed in the record? Those are from shareholders, living in the largest river in Egypt, who think a US District Court and the Federal Judge are some sort of County Planning and Zoning commission to whom they can whine about the mean old SEC and the Snake River Alliance. Not really worth posting or addressing, although this one from the Editor-in-Chief of the BSU Arbiter is a typical, albeit painful, example of the childlike understanding most naive 'supporters' have of this case:

Typical Shareholder-in-Denial-and-Clinging-to-Hope Letter

.

AEHI Key Senior Executive Vice President Jennifer Ransom: Spend, Speed Racer, Spend!

2011-02-01T07:16:00.003-07:00

From the SEC Response Memorandum filed January 28, Document 9, Exhibits P-T

Speed Racer Jennifer Ransom's $250,000 Spending Spree, courtesy of AEHI Investors:

Note the Five-Star resorts all match AEHI CEO Double Dipping Don Gillispie's. And note how Don's Key Senior Executive Vice President for Exquisite Spending Habits needs a Limousine to get to the Acqualina Resort in style.

But hey, she'll help you get your resume turned in for a job you will never get. Right before she races to the bank to take out the money you invested so they could bring us all jobs, jobs, jobs!

What's up with spending $1100 on Clear Investigative Advantage? That's kind of creepy.

And just how much has this particular Key Senior Executive Vice President Who is Now Nothing More Than Head of Office Supplies been paid over the last couple of years, according to the SEC? Oh, you know, just regular office help wages of about $427,000 dollars. Or So.

Spend, Speed Racer! Spend!

This is worse than the Dude imagined.

SEC on Executive Compenastion: Meet AEHI CEO "Double Dipping Don" Gillispie

2011-01-31T07:01:00.015-07:00

From Page 5 of Friday's SEC Response Memorandum: (citations omitted here) (embedded links added)

"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)

A real estate listing for the house indicates it has a private indoor pool. The Zillow listing reflects the 500K price in the SEC Memorandum.

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!
A: Yes.

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 info@aehipower.com

Date: Wed, Nov 24, 2010 at 10:03 AM
Subject: RE: Investor Questions
To: [X]
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.

SEC Response: AEHI's Lies, Lies, and Damned Lies

2011-01-30T17:19:00.001-07:00

First, a word from our author: "New Shit Has Come to Light"

From page 12 of Friday's SEC Response:

Let's hear that analysis by Fleetwood Mac again.

.

SEC: AEHI Key Senior Executive VP Jennifer Ransom "Raced To Her Bank" December 16, Withdrew 140K

2011-01-30T09:48:00.003-07:00

Page 9 of the SEC's Reply Memorandum has these interesting snippets:

" Defendants Withdrew Investor Funds After the TRO.[Temporary Restraining Order]

After the Court signed the TRO Order on December 16, 2010, but before the Commission
could effect service, Ransom raced to her bank and withdrew a total of $140,000 in funds subject
to the asset freeze. Specifically, on December 16, Ransom transferred $20,000 from her Bosco
account to her personal checking account, Waldron Reply Decl. ¶45, Ex. EE at SEC_MW
001223, and paid her property management company $38,936.75. Id. at SEC_MW 001218. The
next morning, Ransom withdrew $40,000 from her joint checking account with Gillispie, id. ¶46,
Ex. FF at SEC_MW 000896, and $40,000 from her Bosco account. Id."

AEHI CEO Don Gillispie at various times has denied allegations that Jennifer Ransom, his Key Senior Executive Vice President for Asian-American Relations, was also his girlfriend. Yet, here we see, according to the SEC, they have (had?) a joint checking account.
Right, Don. Despite your assertion you paraded her around with you on trips to just to impress the "less-technical" Asian businessmen with blond fetishes, it's also a well known fact that 60-something "Retired Nuclear Execs" like to have a "pretty blond face to look at"- which better explains your joint checking account with her and which, according to the SEC, is now $40,000 lighter thanks to her documented ~~driving~~ racing skillz:

State of Idaho Recognizes AEHI Key Senior Executive Vice President Jennifer Ransom's Racing Skills

From a traffic monitoring camera, December 16:

AEHI Key Senior Executive Vice President For Quick Bank Runs Jennifer Ransom On Her Way to Grab Some Cash December 16th

AEHI CEO Don Gillispie in SEC Deposition: Asian Cultural Awareness and Jennie Ransom's Assets

2011-01-29T11:27:00.013-07:00

Don's a sharp one when it comes to shameless exploitation of his "company assets'"

Sarah Silverman couldn't have said it better. Except when she does it, she's joking.

Here are some photo highlights of one of their trips to China:
Caption contest, anyone?

An Alert Reader pointed out Don could use some sensitivity training. Here is our cultural sensitivity commentator, Walter Sobchak on "preferred nomenclature."

UPDATE:

At least one expert on Asian Cultural preferences heartily disagrees with Don's assessment, and somewhat accurately describes the Key Senior Vice President's qualifications:

SEC Responses, Sealed Motion Filed

2011-01-28T19:08:00.004-07:00

Today the SEC filed their "REPLY MEMORANDUM IN SUPPORT OF MOTION FOR PRELIMINARY INJUNCTION AND OTHER ANCILLARY RELIEF"
Document is here.

Lots of interesting details of monthly expense and travel allowances in the exhibits below.

Document 41 is the declaration of one of the Attorneys investigating the case:
Here is a snapshot from the PACER website (links are to the documents saved on Google Docs)

Document Selection Menu
Select the document you wish to view.

Document Number: 41		9 pages	25 kb

Attachment	Description
1	Exhibit A-E	60 pages	2.1 mb
2	Exhibit F	63 pages	2.9 mb
3	Exhibit G-I	20 pages	389 kb
4	Exhibit J Part One	36 pages	2.2 mb
5	Exhibit J Part Two	22 pages	1.4 mb (added link 2/2)
6	Exhibit K Part One	39 pages	2.3 mb
7	Exhibit K Part Two	24 pages	1.3 mb (added link 2/2)
8	Exhibit L	28 pages	2.8 mb
9	Exhibit M-Z	39 pages	1.6 mb
10	Exhibit AA	33 pages	1.2 mb

Also filed is this interesting Motion Filed Under Seal:
Full docket text for document 42:
SEALED MOTION Mark Philip Fickes appearing for Plaintiff Securities and Exchange Commission. Responses due by 2/22/2011 (Attachments: # (1) Sealed Exhibits BB-FF)(Fickes, Mark)

Wonder what that is?

UPDATE 2/2: Added the two missing links, the second halves of Exhibits J and K.

SEC AEHI Case: AEHI Files Memoranda, Affidavits, Asks For More Time on Homework

2011-01-15T09:22:00.001-07:00

Downloaded from the PACER website, saved, and posted to Google Docs so you don't have to pay .08 per page to see them:

Defendant's Memorandum in Opposition (27 Pages)

Affidavit of Don Gillispie (46 pages!... same old windbag. Get to the Point, Don)

Affidavit of Jennifer Ransom

Affidavit of Rick Bucci

Affidavit of Brian Webb

Affidavit of Pinnacle ~~Shills~~ Digest (how much did that cost?)

Affidavit of Some Guy Who Sold Them A House, and Probably Now Wishes He Hadn't

Oops, That Big Report That Was Due Today Still Isn't Done. Can We Have More Time?

Update:
Summary of today's AEHI filings: "Did Not!"

Request for tunes from a reader: A video of Fleetwood Mac touring AEHI's latest proposed "greenfield" site

AEHI SEC Case Updates

2011-01-12T09:19:00.000-07:00

SEC Case Update:

Not much new to report since Warren Zevon summed it up so nicely for us. Couple things of interest, and some upcoming dates, reports and documents from which will be posted as soon as they are available:

January 11th: Application for admission Pro hac vice of New York Attorney Richard A Roth.

January 14th: Responses Due!

January 28th: SEC Replies to AEHIs responses.

February 3rd: Showtime! Save the Date! Maybe a tailgate party in the parking lot of the Federal Building?

AEHI Business Model Lives On- and Will Probably Always be Around

2011-01-12T09:10:00.000-07:00

A few posts back, AEHI Truth posted a picture sequence of AEHI CEO Don Gillispie doin' a little preachin':

Looks like some enterprising fellow in Dubai took a page from the old AEHI playbook:

Dubai jails 'wizard' who promised rain of cash.

For another similar story, check out this account of the incredible Charles K Ponzi, a fascinating, very detailed and well written account by Mark Knutson.
Particulary interesting in light of recent events are nos. 3 and 4 below:

The Tale:
1. Preface: Difficile est Ponzi non scribere

2. The Scheme: Early crimes; The postal coupon scheme

3. The Run: The beginning of the end

4. Bankrupt: Financial and criminal mop-up

5. Epilogue: Further adventures of Ponzi

A thorough understanding of Ponzi's operation, and others' reactions to the accusations, makes it easier to understand how our current one was perpetrated so brazenly and for so long, and why folks are still defending them, as in this letter to the Statesman on Sunday:

"Before you activists convict them, let them prove themselves. As for the Maserati, Don has had that car for at least five years! Quit accusing them of wrongdoing. You are doing anything to destroy these fine people, and it’s got to stop. All supporters please keep supporting AEHI through this hard time."

No matter the evidence to the contrary, these folks simply have to believe. Why?

Someone recommended this book to me:

Mistakes Were Made (But Not by Me): Why We Justify Foolish Beliefs, Bad Decisions, and Hurtful Acts,
by Carol Tavris and Elliot Aronson.

The AEHI saga ought to be its own chapter in that book.

A huge thanks to the person who recommended that book, by the way.

AEHI Stock Resumes Trading; Actual Footage of AEHI Stockholder; In Depth Analysis of Investor Behavior

2010-12-29T12:15:00.000-07:00

Trading of AEHI shares resumed today, with the price opening at about .06 and currently hovering at about .10, down from its pre-suspension price of .57

One hopeful AEHI investor was recently filmed expressing his optimism when the chances of the company surviving the SEC charges were explained to him:

Ron White may have summed up a better explanation of today's trading:

"You can't fix stupid."

How They Make Bad News Sound Good: AEHI Provides Business Update and Recap of Key Milestones

2010-12-23T08:10:00.000-07:00

Been missing AEHI's almost daily barrage of press releases? Here's one to catch us up from where they've left us hanging since December 13th.

(note- satire ahead)

AEHI Provides Business Update and Recap of Key Milestones; Major Progress Only Slightly Delayed Towards Local Approval of Nuclear Reactor; Nothing Really Wrong Around Here; CEO and Senior VP Announce Hard-Earned Vacations

(Source: DudeNewsWire) BOISE, Idaho, December 23, 2010 (via RUBE NEWSWIRE) -- Alternate Energy Holdings, Inc. (OTCQB:AEHI) today provided a business update for the fourth quarter of 2010.

Key Events and Milestones:

- Dec 14th: AEHI was offered a temporary suspension to the trading and selling of company stock by a helpful and gracious Securities and Exchange Commission. "We're really grateful to the SEC for giving us this opportunity to stop, take a breather and catch up on orders," said AEHI CEO Don Gilllispie. "The shares were flying off the shelves faster than we could print them at these ridiculously low prices, so this will give us an opportunity to get a few hundred million more printed off before people start buying them up again in anticipation of our phenomenal returns."

Dec 15th: Undaunted by the temporary suspension of stock sales, Payette County leaders weighed in with their continued support: "We appreciate the hard work our government watchdogs are doing in paving the way for even more investors to participate in our County's economic well-being," said a beaming Payette County Planning Commissioner.

- Dec 16th: The SEC and the Federal Court in Boise invited AEHI and its Key Executives Don Gillispie and Jennie Ransom to present AEHI's unique business model to the U.S. Court. "This rarely-issued invitation couldn't come at a better time for AEHI, what with all these Key Milestones right up around the corner," said AEHI CEO Don Gillispie.
"The opportunity to showcase my company's assets in a well-appointed wood paneled room in Boise's exclusive downtown Federal Building shows what business acumen and good decorating taste the Federal Judge and SEC attorneys have", echoed highly essential and Key Senior Vice President Jennifer Ransom. "We will also be accepting the court officials' resumes just before the presentation, and since we ran out of both stock and little green stickers, we hope these gift baskets will show our appreciation for their support," added Ransom from the front seat of her Range Rover.

-Dec. 20th: The AEHI offices at 911 E Winding Creek Drive in Eagle were a flurry of activity Monday, with Key Company Officials booked solid all day signing Key Agreements with and on behalf of AEHI affiliates and subsidiaries in preparation for AEHI's business presentation to the Federal Judge and Key SEC Officials. I've got so many successful companies, I can't keep them all straight," joked AEHI CEO Don Gillispie, while signing the groundbreaking agreement with AEHI and Don's own Energy Executive Consulting, LLC, which will also be presenting to the Court. Court messenger service personnel attended the five signing ceremonies that day on behalf of the Honorable U.S. District Judge Edward Lodge, who was unable to attend due to prior commitments. "We are happy to have these agreements signed and can now announce yet another Key Milestone Date for the Company: Feburary 3, 2011, when Jennie and I make our presentation to the actual official U.S. Government." "Save the Date!" added an ecstatic Ransom from her well-decorated office as she perused invitation announcements on the internet.

-Dec 20th: After a whirlwind week at the Interplanetary Global AEHI Headquarters in Eagle, an exhausted and emotionally spent CEO and his Key Senior Vice President announced they would be taking some well-deserved and hard-earned vacation time. "Signing Groundbreaking Agreements which lead to Key Milestones is really, really hard work," according to Key Senior Vice President Jennifer Ransom.
"This little peach right here has really been workin' her tail off," said AEHI CEO Don Gillispie of his Senior Vice President. "You wouldn't believe what Jennie brings to the table in the running of highly successful businesses like ours. Now we've just got to take a little time off to be ready to hit the ground running with this fast moving train. We'll be back after an indefinite period of time," added a beaming Gillispie.

Safe Harbor Notice:
AEHI has no money, no plan, and no hope whatsoever of doing a damned thing with your investment except spending it on our lavish lifestyles like jewelry, cruises, and expensive sports cars. Your mileage may vary. If you don't like it, go invest somewhere else. Don't ask us too many questions and don't say we didn't tell you so. Neener. Now hand it over. All of it.

AEHI Removes Officer, Director Bios: Trying to Cover Tracks? Seems A Little Late For That

2010-12-21T12:25:00.002-07:00

From the Global Headquarters of the "self-described Idaho Nuclear Power Company" Alternate Energy Holdings, Inc., we have this announcement on the Company Information page:

Company Leadership

For security purposes we have temporarily removed the names and backgrounds of our CEO and Board of Directors following recent allegations from the Securities and Exchange Commission.

Don't worry about not having access to those bios anymore, though. Through the magic of Google, we cut, pasted and saved those bios from Google's cached copy of AEHI's webpage on December 10, 2010:

Donald Gillispie
Mr. Gillispie has over 45 years experience in construction, operations and maintenance of nuclear power plants. He is widely considered one of the more experienced senior executives still working full time to help the United States reemerge as the world’s leader in nuclear power.
Gillispie received his undergraduate degree in electrical engineering at Clemson University, where he graduated cum laude. He later completed the senior executive program at the MIT Sloan School of business.
His real interest in nuclear power began in the military. He completed the Navy Nuclear Power School, became a nuclear operator, and served aboard the SSBN, Francis Scott Key.
Since that time, Gillispie has served in a number of positions in the nuclear industry. He worked on the startup of Beaver Valley Unit 1 in Shippingport, Pennsylvania. He worked on the construction and startup of Duke Energy’s first three nuclear units at Oconee Nuclear Station in South Carolina. While working for Tennessee Valley Authority, Gillispie was involved in the construction, startup and operations of three nuclear facilities. And while working with the Institute of Nuclear Power Operations he was a manager of engineering and director of restart respectfully for the turnaround of the Rancho Seco and Pilgrim nuclear power plants.
Gillispie helped found a cornerstone program for the Institute of Nuclear Power Operations (INPO), which is the safety watchdog to all U.S. nuclear utilities. He also helped startup the Nuclear Management Corporation (NMC), a nuclear operating company in Wisconsin, which operated up to eight nuclear power plants with 5,000 employees. Incidentally, NMC was awarded best in class by Forbes.com in 2001. And as owner of Grace Glens, a private nuclear-technical management consulting company, Gillispie consulted with some of the largest nuclear utilities in the United States, advising senior executives on commercial nuclear power operations.
As part of a three-man executive team, Gillispie assisted in overseeing the 2007 reopening of Browns Ferry Nuclear Plant unit three in Alabama before moving to Idaho to be near AEHI's first nuclear project. Its reopening was attended by President George W. Bush.

Leon Eliason
A past President of two nuclear utility business units and former AEHI Chairman, has served on the Board of AEHI since inception. Mr. Eliason is a professional in the utilities field, with thirty-three (33) years of experience in operations, maintenance, engineering, and management of Nuclear, Fossil, Solar, and Hydro Power Plants. Most notable, he served as President of the Nuclear Business Unit and Chief Nuclear Officer for Public Service Electric and Gas, Newark New Jersey – where he was responsible for all operational and support activities including fuel, technical support, business planning, and financial support for two generating stations.

John Franz
John Franz, a past Vice President of a nuclear utility, has served on the Board of AEHI since February 2007. Since leaving the nuclear utility, he has been a consultant for 12 nuclear power plants and 2 consulting firms, including practice INPO Accreditation Boards and membership on Nuclear Safety Review Boards. Mr. Franz has 36 years of diverse experience in the licensing, start-up, operation, and management of nuclear power plants. Most notably, he led a troubled plant to top NRC and INPO ratings, as well as directed a plant restart effort following a mandated NRC shutdown.

Ken Strahm, Sr.
A past President of the nuclear industry watchdog organization INPO, has served on the Board of AEHI since inception. Prior to his retirement, Mr. Strahm was employed by the Institute of Nuclear Power Operations (INPO) in Atlanta, Georgia, where he served as the Director of the National Academy for Nuclear Training and later as President of the Institute.

Greg Kane
A past nuclear plant manager, has served as Vice President and Board member of AEHI since inception. Mr. Kane currently is President of Eagle “I” Nuclear Assistance, a consulting firm that provides, or has provided, management consulting to over twenty-five (25) nuclear programs. Mr. Kane previously held the position of General Manager at Virginia Power’s twin unit PWR North Anna Nuclear Plant, where he was responsible for safe operation and budgeting of the station in all aspects of activities. Under Mr. Kane’s leadership, the plant achieved top industry evaluation scores and one of the lowest power production costs in the United States.

Ralph Beedle
A past Senior Vice President of the Nuclear Energy Institute, has served on the Board of AEHI since inception. Mr. Beedle retired after serving as Senior Vice President and Chief Nuclear Officer of the Nuclear Energy Institute – where, in addition to his operational management duties, he interacted regularly with the U. S. Nuclear Regulatory Commission and other federal agencies, as well as members of Congress.

Rick Bucci
A Certified Public Accountant and former CFO, has served as Chief Financial Officer of AEHI since September 2007. Mr. Bucci has practiced accounting and tax for 20 years; his diverse background includes hotels, construction, real estate development and banking. Additionally, he has served previously as CFO of two corporations. His experience includes tax planning and preparation, audit services, financial statement preparation and presentation, bank financing and various consulting engagements. Also, Mr. Bucci is a Certified Public Accountant licensed to practice public accounting in New York State.

James Taylor (Advisor to Board)
Former Chief Operating Officer of the U.S. Nuclear Regulatory Commission (NRC), has served on the Board of AEHI since inception. During his career, he was recognized by both Presidents Bush and Clinton with Presidential Distinguished Executive Rank Awards in 1989 and 1994. Mr. Taylor additionally held the position of Chief Financial Officer during his years of NRC employment and has served on Nuclear Safety Oversight Committees at nine (9) utilities operating nuclear power plants.

Mike Sellman, Director
Mike Sellman, Director, a past CEO and founder of the Nuclear Management Company that operated 8 nuclear reactors in the Midwest. He also served as a nuclear site vp and plant manager during his career. He has served on the board of Nuclear Energy Institute, Institute of Nuclear Power Operations and American Nuclear Society. Mr. Sellman is an international nuclear consultant and advises Idaho National Laboratories. He began his career in the Navy Nuclear Program working on Admiral Rickover's staff.

Other Company Management:

Jennifer Ransom
President of Energy Neutral™. Ms. Ransom was past owner of Ransom Insurance and has management experience in accounting, insurance and retail.

Nancy Shi, President, AEHI China Ltd
Ms. Shi has over 20 years experience in the financial industry including past assistant professor, School of Economics and Management, Tsinghua University and co-founder Shenzhen Mission Investment and Development Co. Ltd. (China).

Members of the AEHI Executive Committee are as follows: Don Gillispie (Co-Chairman), Leon Eliason (Co-Chairman), Ken Strahm, and Ralph Beedle.

It's too late now to try to bury all the steaming piles you've left strewn about the information superhighway, Don. Way too late.

AEHI: How Do We Scam Thee? Let Us Count The Words

2010-12-21T09:07:00.001-07:00

The Snake River Alliance ended up in a lawsuit because their mean ol' executive director used the word "scammer" to describe them. Ol' Don Gillispie really went nuts on them in his blog, too, whining about how those mean greenies were harming the company by reducing the value of its stock and defaming its officers.

By that account, the meanies at the SEC must be in a heap o' trouble.

Let's see just how much.
Taking the seventeen-page SEC complaint and using the word search feature, we can see how many times the SEC used certain words to describe Alternate Energy Holdings' 'business' operation.

Here's a handy chart:

Ouch!

New Reader Contest! See how many of these words you use can use in one sentence.

AEHI: Post Game Analysis, Part I

2010-12-19T15:20:00.003-07:00

If you can stomach it, watch Don's pitch job here.

Stop at any point, and skip to the nice analysis and summary of the aftermath here:

AEHI Stock: Burn After Buying?

.

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

2010-12-18T12:45:00.006-07:00

Hitting the news recently is Ada County Highway District's appointment of Bruce Wong as Director.
From the Boise Weekly article:

"Wong’s resume may boast a corny promise to drive a “culture of winning,” but he has a long list of accomplishments. ... He served as military consultant for the Idaho Energy Complex..."

Whoa there. Consulting our chart of companies, we see that "Idaho Energy Complex" is actually just another name for Alternate Energy Holdings, Inc., as a 100% owned subsidiary. Maybe being affiliated with AEHI wasn't as popular on December 17th as it was on December 13th?

Another quote, from the BW article:

“I will give you all 100 percent every day, guaranteed. I have no second agenda. I have no third agenda—I never have, I never will,” said Wong.

Hmm. "The [retired Col.] doth protest too much, methinks" (apologies to Bill S.)

According to the 10-12G filed by AEHI October 8th, 2008, we see Mr. Wong listed no less than nine times as recipient of AEHI shares:
Wong, Bruce C.   40,000   $0.10    $4,000.00 12/21/2007
Wong, Bruce S.   32,000   $0.20    $6,400.00       11/5/2007
Wong, Bruce S.   40,000   $0.10    $4,000.00       1/22/2008
Wong, Bruce S.   20,000   $0.10    $2,000.00       2/28/2008
Wong, Bruce S.   20,000   $0.10    $2,000.00       3/21/2008
Wong, Bruce S.   20,000   $0.10    $2,000.00       4/24/2008
Wong, Bruce S.   20,000   $0.10    $2,000.00       5/19/2008
Wong, Bruce S.   20,000   $0.10    $2,000.00       6/23/2008
Wong, Bruce S. 250,000   $0.10    $25,000.00    7/16/2008

That's 462,000 shares of Alternate Energy Holdings, which on December 13th was worth just over a quarter million dollars. That was his ownership position on October 8th, 2008, though. It may be less, or it may be more by now.

Recently, Wong went to bat for Don Gillispie and Alternate Energy Holdings, Inc. with Payette County, submitting these letters, in one of which he offers his "...opinion as a stock holder in the company..." and in the other refers to his "...unquestionable support for both AEHI and their nuclear power plant initiative...," (links are to the .pdf documents on the Payette County P and Z document site, multiple pages in length)(click on the images below to enlarge):

He also testified at the December 2nd Payette Planning and Zoning Hearing on behalf of Don Gillispie and AEHI. With a substantial amount of shares at stake, that sure sounds like an "agenda", doesn't it?

Most recently, he and his one time employer Don Gillispie were at the Operation Warmheart event in Nampa:
From the KTRV video coverage:

Here's Mr. Wong introducing the event:

and below, in the second row, is that famous combover atop the head of none other than AEHI CEO Don Gillispie: (that also might be the mop of one Dan Hamilton on Don's left, as well)

And here's a picture of Five-Finger Don trying to schmooze it up with the Air Force, two days before they would discover he's in a heap of trouble: (photo from AF website here)

Stay tuned for more of Wong's "unquestionable support for AEHI" later.

PIPEs Report: Roswell Capital Says AEHI's $150 Million Funding Agreement Automatically Terminated

2010-12-17T11:43:00.000-07:00

Yesterday's article on the PIPEs Report had this little nugget about the Roswell Funding agreement:

"On Nov. 22, Roswell Capital Partners, through its Centurion Private Equity LLC fund, agreed to provide $150 million in equity line financing to Alternate Energy.
That agreement will be terminated, Roswell said in an emailed statement to PIPEwire today. The SEC's charges against Alternate Energy trigger terms in its financing contract that will cause it to automatically be cancelled, Roswell said."

Yup. Here it is:

2.3.2 Termination of Right to Put. The Company’s right to initiate subsequent Puts to the Investor shall terminate permanently (each, an “Automatic Termination”) upon the occurrence of any of the following:

(a) if, at any time, either the Company or any director or executive officer of the Company has engaged in a transaction or conduct related to the Company that has resulted in (i) a Securities and Exchange Commission enforcement action, or (ii) a civil judgment or criminal conviction for fraud or misrepresentation, or for any other offense that, if prosecuted criminally, would constitute a felony under applicable law;

What are we up to now, four or five of these triggers?

This time, though, Roswell itself states the trigger applies.

Razzle! Dazzle!.... Fizzle!

2010-12-17T10:40:00.001-07:00

Updated photo of the USS Gillispie, after it's brush with the USS S.E.C.:

USS Gillispie, apparently in Dire Straits

What A Long, Strange Trip It's Been

2010-12-17T09:02:00.001-07:00

From the "Where do you get your facts?" department: Two years worth, here:

The Dude's Steaming Pile of AEHI Documentation.

This pile of documentation will soon generate more BTUs of energy than was ever generated by Alternate Energy Holdings, Inc.
We will keep the stock certificate as a little memento.

AEHI: The Musical!

2010-12-17T07:24:00.001-07:00

Let's hear from AEHI's new legal advisor, Warren Zevon:
"Send Lawyers, Guns, and Money; The Shit Has Hit The Fan"

Another version here.

This song never gets old, and really fits this occasion, doesn't it?

AEHI to Build Bogus Nuclear Powered Ski Lifts?

2010-12-17T07:05:00.000-07:00

From the Platts website:

"US SEC charges AEHI with fraud in bogus nuclear plant project

New York (Platts)--17Dec2010/603 am EST/1103 GMT"

At this point, it really would come as no surprise to us that AEHI had also contemplated building a plant at Bogus Basin Ski Resort.
Unless Platts possibly, maybe, meant something else by the term "bogus"?
Wonder how that speaking engagement at the Platts Conference is looking now?
Wonder how long will it take Platts to remove Don from this speaker's list?

Financing Nuclear Construction Projects:

Gerry Garfield, Partner, Day Pitney LLP
Don Gillispie, Chairman and Chief Executive Officer, Alternate Energy Holdings
Bob Percopo, Executive Vice President, Chartis Insurance
John J. Reed, Chairman and Chief Executive Officer, Concentric Energy Advisors
James Asselstine, Managing Director, Barclays Capital
Ray Rothrock, Partner, Venrock

SEC: AEHI Manipulated Stock Price Through Misleading Public Statements

2010-12-17T06:34:00.002-07:00

A great example of the way AEHI CEO Don Gillispie is alleged to have manipulate stock prices comes from the KTRV Fox-12 Newsroom. Take it away, Dan Burgundy:

Posted: May 14, 2009 8:14 PM MDT

Eagle, Idaho -- Growing concerns are coming from the company hoping to build a nuclear power plant in Elmore County that someone has been manipulating their stock prices.
They believe someone is stooping to new and illegal lows to derail the proposed plant from moving forward.
Since the idea was created to build a nuclear power plant on some farmland in Elmore County, employees at the Snake River Alliance have been on the offensive, hoping to stop Alternate Energy Holdings from being successful.
"AEHI has tried to twist Elmore County's comprehensive plain like a pretzel to make it seem like plopping a nuclear reactor in the middle of farmland is a good idea for the county," said Andrea Shipley, Snake River Alliance.
It's a war of words for the most part, and the Snake River Alliance isn't the only group involved, but now Don Gillespie at AEHI says someone is trying to stop the proposed plant by manipulating the stock market.

Gillespie says he's noticed strange downward spikes in AEHI stock on days when something like a press release would normally cause an increase.

"So we'd expect on those days people to buy because the stock was going to start lifting and right in the middle of that would be one of these crazy small sales. And it was almost a pattern that started occurring with our news. So we started watching and then we'd do the news. Our stock would start to lift and then we'd get one of these sales," said Gillespie.
...
Whoever's doing it is taking a hit financially, but they have caused the stock to drop by about 70 percent on some occasions, and Gillespie says he thinks he knows the culprit. That's after a few months ago, when he told someone that he was about to report the matter to the authorities.
"Low and behold it stopped for almost two months. And now it's picking back up again," said Gillespie.
He didn't report the issue back then, but now Gillespie says he has no choice.
"They've thrown a rock through our window in an old office that we had in Mountain Home, left nasty messages on my home recorder. I mean it's all kinds of little shenanigans, but now we're into more serious things, more law breaking," he said.

Here are some more examples of the fawning coverage AEHI got at KTRV, which now looks a little different in light of the SEC complaint:
April 2009: Rezoning For Nuclear Power Plant
June 2009: Nuclear Power Plant Funded
May 2010:Home May Pay Its Own Utility Bill

According to the SEC complaint filed yesterday, Don Gillispie knows exactly what the hell he's talking about when it comes to intentional stock manipulation:

According to the SEC, "Gillispie's scheme to manipulate the market is working."

Make that "was."

Back to you, Dan:
The Rest of KTRV and Dan Hamilton's fawning coverage of AEHI here.

And this little gem from AEHI's Press Release Factory:

Dec 04, 2009 11:51 ET

Dynamic KTRV Fox 12 News Anchor to Join AEHI Team

Bringing Nine Years of Knowledge on Current Issues to the Table, He Will Assist AEHI on Achieving Many Short and Long-Term Goals Already in Motion

BOISE, ID--(Marketwire - December 4, 2009) - Alternate Energy Holding, Inc. (PINKSHEETS: AEHI): Today proudly announces Dan Hamilton will be joining AEHI as of January 1, 2010. Mr. Hamilton will be in charge of handling the daily public relations functions including company spokesperson responsibilities as well as the ongoing endeavor of building a nuclear power plant in Payette County.
Hamilton became a well-respected and seasoned journalist and television news-anchor during his nine years tenure at Fox 12. In the past, Hamilton reported on and closely covered various media departments; including crime, state politics, even in sports, for example, the Boise State Bronco's sensational win over Oklahoma in the 2007 Fiesta Bowl.
"I have full confidence in Dan's intelligence, skills and ability to get the job done," said Don Gillispie, AEHI Chairman and CEO. "Dan will be a welcome addition to our already seasoned and highly-effective team."
"He is a well-respected journalist who brings with him a wealth of knowledge on a variety of issues, including that of nuclear power," said Gillispie. "Dan has thoroughly studied the issue since we first announced our plans to build in Idaho, so it's easy to see how he will also be a great resource for those who want to learn more about what nuclear power can produce in terms of energy, revenue, and new jobs for Payette County, and by extension, the state of Idaho."

SEC BRINGS FRAUD CHARGES AGAINST AEHI, DON GILLISPIE, JENNIFER RANSOM

2010-12-16T12:15:00.004-07:00

Let's look at that AEHI Facebook statement one more time:

Dec. 15th: "First, it is important to note that there is no accusation of wrongdoing by the SEC."

From the (today's) Front Page of The U.S. Securities and Exchange Commission Webpage:

SEC BRINGS FRAUD CHARGES AGAINST SELF-DESCRIBED IDAHO NUCLEAR POWER COMPANY

Washington D.C., Dec. 16, 2010 – The Securities and Exchange Commission today charged a self-described power company in Idaho with fraudulently raising funds for a $10 billion nuclear power project. The SEC is seeking an emergency court order to freeze the assets of the company and two executives. The SEC alleges that Alternate Energy Holdings Inc. (AEHI) has raised millions of dollars from investors in Idaho and throughout the U.S. and Asia while fraudulently manipulating its stock price through misleading public statements that conceal the secret profits reaped by its CEO Donald L. Gillispie and Senior Vice President Jennifer Ransom. Gillispie has touted the company as a tremendous investment opportunity that could rival Exxon Mobil in profitability, despite the fact that AEHI has essentially no revenue and minimal operations. The SEC suspended trading in AEHI stock earlier this week. “In light of AEHI’s ongoing efforts to raise funding while promoting itself through a daily deluge of press releases, we needed to take immediate action to get to the bottom of the company’s misleading statements,” said Marc Fagel, Director of the SEC’s San Francisco Regional Office. “Documents we have obtained to date indicate a scheme to personally enrich the CEO at the expense of investors.” According to the SEC’s complaint filed today in federal district court in Boise, AEHI’s fundraising was facilitated by a scheme to drive up the company’s stock price, both through frequent press releases (at least 87 in 2010 alone) and efforts of paid stock promoters to manipulate the stock price. The SEC alleges that the company has made multiple misrepresentations, including claims that its executives had such confidence in AEHI that they had not sold a single share of company stock. Records obtained by the SEC show that Gillispie and Ransom have instead secretly unloaded extensive stock holdings and funneled the money back to Gillispie. The SEC’s complaint also alleges that AEHI reported to the SEC and investors that Gillispie’s compensation was $133,000. However, Gillispie has actually reaped approximately six times that amount in 2010. The SEC’s complaint charges AEHI, Gillispie, and Ransom with violations of the anti-fraud provisions of the federal securities laws, and names as relief defendants two companies controlled by Gillispie and Ransom (Executive Energy Consulting LLC and Bosco Financial LLC). In a motion filed simultaneously with the enforcement action, the SEC seeks emergency relief for investors including an asset freeze and a temporary restraining order enjoining the defendants from further violations of the securities laws. The SEC’s case was investigated by Kristin Waldron, David Berman, Heather Marlow, and Tracy Davis of the San Francisco Regional Office. The SEC acknowledges the assistance of the Idaho Department of Finance and FINRA in this matter. The SEC’s investigation is continuing.

.

Reader Reviews

2010-12-16T10:53:00.000-07:00

What readers have had to say about AEHI Truth over the last year or so:

"Excellent and relentless evisceration"- R.S., Boise

"Very interesting, insightful, and entertaining blog"- Anon.

"Very nice!"- Anon.

"Simply amazing stuff on this blog!"- Anon.

"Come on, this is a bit harsh"- Joe Lucid

"I arrived here following links from the newspaper article and I can honestly say this is the most childishly presented crap I have ever read."- J.I., Idaho Department of Commerce, Idaho Office of Energy Resources, Wind Task Force Member.

"Very, Very nice!!"- Joe Lucid

"Nice research!"- Anon.

"Good blog - Someone suggested looking into AEHI, and after coming across your blog, I'll continue to do research before going any further!"- Anon.

"please please please...what are you so worried about. there is so much red tape and regulation that goes on any more that there could not possibly be any "wrong doings" in the nuclear market. anyway, aren't you concerned about the environment? if you did your research, you would find that nuclear energy is the cleanest form of energy on the "planet"...
---one person, of most, that support our environment unlike you (sir miss)"- Anon.

"...really funny/snarky/informative-especially the links and extra info"- "MHGreg"

SEC Plays Twenty(Two) Questions with AEHI- What Are They?

2010-12-16T10:03:00.003-07:00

Yesterday's Idaho Mistakesman article on the SEC's action to halt AEHI trading had an interesting statement attributed to AEHI CEO Don Gillispie:

"Gillispie said the SEC sent him a letter asking him to answer 22 questions. He said he was confident he could answer them to the commission’s satisfaction."

Will the SEC make those questions public? How about Alternate Energy Holdings' "we're an open book" CEO Don Gillispie?

Twenty-two questions. That seems like a lot of questions, and they are apparently serious enough that the SEC acted to halt trading to, in their own words, "serve the public interest and protect investors."

AEHI, on their stock-pumping Facebook page, wrote this late in the day of the suspension: (actually almost 1AM the 15th):

"We will be issuing a press release on this soon, but we are waiting to see what we get from the SEC once we are able to speak to them."
[Waiting to see what we get from the SEC? You already know- Don talked to the Mistakesman reporter that day and stated the SEC had 22 questions. And what's up with the "once we are able to speak to them?"- nice try at buying time while you cook up a cover story to keep the daytraders calm.]

"First, it is important to note that there is no accusation of wrongdoing by the SEC."
[This takes the cake for misleading statements. Here is what the SEC itelf says on its webpage about temporary trading suspensions:]

"Why would the SEC take such action when it knows it will hurt current shareholders?
Because a suspension often causes a dramatic decline in the price of the security, the SEC suspends trading only when it believes the public may be making investment decisions based on false or misleading information. Suspensions give notice to current and potential investors that we have serious concerns about a company. A suspension may prevent potential investors from being victimized by a fraud."

[Does anything in that paragraph above even hint or imply that "...there is no accusation of wrongoing by the SEC"? Just the opposite.]

"...[name of online entity we like to whine about] has recruited enough like-minded people to send in a host of bogus complaints (based on his online written accusations).

Now we have the SEC that is asking questions that seem to mirror those complaints.
[I thought you were "waiting to see what we get from the SEC"? Now you know what the questions are and to you, they match concerns raised here and elsewhere? Which is it, Don? And if the complaints were 'bogus', why would the SEC take the drastic step of suspending trading?]

"While many [Namely, the US Securities and Exchange Commission] see this as a negative, I look to the positive. We are an open book. [Then tell us what the 22 questions are] We have been a fully-reporting company since becoming public and we look forward to answering any official questions. "[You keep saying that, but when people ask those questions, you give evasive and misleading asnwers when you aren't questioning the motives of the inquirer. Try answering them honestly the first time, and the SEC won't have to resort to the drastic step of a trading suspenstion to get you to do what you ought to have done in the first place.]
"Why? Because once completed, which according to the SEC should be done in two weeks, we believe we will have satisfied every question and with enough proof to put these issues to bed permanently." [Again, why should it take the drastic action of Federal Regulators to make you be the "open book" you repeatedly claim to be? And what's with the "we believe"? That's the kind of wishy-washy, hedging language you use when you really aren't sure how things are going to turn out.]

The next day, AEHI published a press release on the stock-pumping Facebook page. Unlike the press release that went out everywhere else, this one has an interesting preface, aimed at something pointed out on this blog:

"Below is our news release about the temporary suspension of trading. As an aside we would like to point out our funding commitment with Roswell Capital Partners is still valid (http://tinyurl.com/roswellaehi). Roswell has now waived the section of the contract that indicates we can’t have a series of consecutive days in which we are not actively trading."

Really? Note to AEHI shills and media whores: Show your work, via an 8-K, or a copy of the modified contract specifically waiving that clause, and AEHI Truth will gladly post it. But not before. And has Roswell agreed to waive all the other apparent triggers as well? Invest(igat)ors want to know.

And then there is this little gem, appended to the bottom of the statement:

"The words "believe," "expect," "anticipate," "project," "target," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events, including our ability to list on a national securities exchange. These statements are based on the beliefs of our management as well as assumptions made by and information currently available to us and reflect our current view concerning future events. As such, they are subject to risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements.

Essentially- "We intentionally hedge our statements so we can't be held to them," and "your results may vary."

Well put, Don.

SEC Trading Suspension- What Does It Mean?

2010-12-14T16:26:00.002-07:00

Lots of questions arise from today's action by the Securities and Exchange Commission to suspend the trading of Alternate Energy Holdings' stock. Luckily, the SEC has a webpage with answers to some of those questions. Some highlights from that page:

When can the SEC suspend a stock from trading?
When it serves the public interest and will protect investors, the SEC may suspend trading. For instance, the SEC may act when public information about a company is not current, accurate, or adequate. The SEC has acted when serious questions arose about a company's assets, operations, or other financial information.

What happens when the ten-day suspension period ends? Will the SEC issue a statement about the status of the company after the suspension has ended?
No. The SEC will not comment publicly on the status of a company when the ten-day suspension ends because the company may still have serious legal problems. For instance, the SEC may continue to investigate a company to determine whether it has defrauded investors. The public will not know if the SEC is continuing its investigation until the SEC publicly announces an enforcement action against the company.

Will trading automatically resume after ten days?
It depends on the market where the stock trades. Different rules apply in different markets.
For stocks that trade in the OTC or the over-the-counter market, trading does not automatically resume when a suspension ends. (The OTC market includes the Bulletin Board and the Pink Sheets.) Before trading can resume for OTC stocks, SEC regulations require a broker-dealer to review information about a company before publishing a quote. If a broker-dealer does not have confidence that a company's financial statements are current and accurate, especially in light of the questions raised by the SEC, then a broker-dealer may not publish a quote for the company's stock.
In contrast to OTC stocks, stocks that trade on an exchange or Nasdaq resume trading as soon as an SEC suspension ends.

If the suspended stock resumes trading, why is it trading at a much lower price?
The trading suspension may raise serious questions and cast doubts about the company in the minds of investors. While some investors may be willing to buy the company's stock, they will do so only at significantly lower prices.

Why would the SEC take such action when it knows it will hurt current shareholders?
Because a suspension often causes a dramatic decline in the price of the security, the SEC suspends trading only when it believes the public may be making investment decisions based on false or misleading information. Suspensions give notice to current and potential investors that we have serious concerns about a company. A suspension may prevent potential investors from being victimized by a fraud.

If there is no market to sell my security, what can I do with my shares?
If there is no market to trade the shares, they may be worthless. You may want to contact your financial or tax adviser to determine how to treat such a loss on your tax return.

Where can I get information about trading suspensions?
You can find a list of companies whose stocks have been suspended by the SEC since October 1995 on our Web site.

SEC Trading Suspension: News and Blog Roundup

2010-12-14T12:43:00.005-07:00

Lots of new stories popping up all over the place:

Boise Weekly

Idaho Statesman

Sun Valley Online

Argus Observer

Streetsweeper

Idaho Business Review

InAudit News

Dan Yurman's Idaho Samizdat (pro-nuclear, by the way). He has been as skeptical of the company as the Dude, and for a lot longer. Lots of expertise, and many past articles that highlight the improbability of his "project". The Dude has been remiss in not quoting this blog all along. Mea Culpa.
From Dan's posting today:

Highlights of blog coverage of AEHI

April 2010 – Payette approves land use
January 2010 – KEPCO reactors not certified in US
June 2009 – AEHI gets another banker
June 2009 – Nuke suit stopped
December 2007 – AEHI claims $150 M for start up
April 2007 – Idaho’s invisible nuclear power plant

More links posted as they pop up.

UPDATES:
Streetsweeper has a new article here.

SEC's AEHI Stock Trading Suspension: The Fallout

2010-12-14T12:29:00.000-07:00

What happens when stock trading is suspended for 14 days?

Take a look at the "$150 Million Funding Committment" documents:

2.3.2 Termination of Right to Put. The Company’s right to initiate subsequent Puts to the Investor shall terminate permanently (each, an “Automatic Termination”) upon the occurrence of any of the following:

...

(j) the suspension from trading or failure of the Common Stock to be listed on an Approved Primary Market for a period of three (3) consecutive Business days;

Whoops.
Or is it WPPSS?

SEC SUSPENDS AEHI STOCK TRADING

2010-12-14T08:13:00.005-07:00

From the SEC: http://sec.gov/litigation/suspensions/2010/34-63535.pdf
(and a big thanks to Joe Lucid for the tip!)
UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 Release No. 63535 / December 14, 2010

The Securities and Exchange Commission (“Commission”) announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange Act”), of trading in the securities of Alternate Energy Holdings, Inc. (“AEHI”)), of Eagle, Idaho at 9:30 a.m. EST on December 14, 2010, and terminating at 11:59 p.m. EST on December 28, 2010.

The Commission temporarily suspended trading in the securities of AEHI because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the stock sales of certain AEHI officers, the status and viability of funding to build a nuclear reactor, and executive compensation.

The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.

Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5777. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to AEHI securities until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.

If any broker, dealer or other person has any information which may relate to this matter, he should contact Michael S. Dicke or Tracy L. Davis of the San Francisco Regional Office of the Securities and Exchange Commission at (415) 705-2500."

A quick check of the Pink Sheets OTC page shows AEHI with a Skull-and-Crossbones symbol and the label "Caveat Emptor":

Buyer Beware. Ya Think?

The Idaho Statesman has a story here.

AEHI: The Movie! Academy Award Winning Screeplay by Mel Brooks

2010-12-10T10:02:00.000-07:00

People often ask just what the hell Alternate Energy Holdings, Inc, and their CEO, Don Gillispie are up to, if their plans to build a nuclear power plant have almost no chance of coming to fruition, especially after their unbroken record of failures followed by lawsuits.

It looks almost as if Mel Brooks was predicting the future when he wrote his Academy Award-winning screenplay, The Producers. The similiarities are both hilarious and troubling.

If you haven't seen the film, or it's been a while, here is the plot summary from Wikipedia:

"Max Bialystock (Zero Mostel) is a failed, aging Broadway producer who ekes out a living romancing lascivious wealthy elderly women in exchange for money for his "next play". Nebbishy accountant Leo Bloom (Gene Wilder) arrives at Bialystock's office to do his books and discovers there is a two thousand dollar overage in the accounts of Bialystock's last play because he raised more money than he needed. Bialystock persuades Bloom to hide the relatively minor fraud; and, while shuffling numbers, Bloom has a revelation, which Bialystock immediately puts into action. They will over-sell shares again but on a much larger scale and produce a play that will close on Opening Night. No one audits the books of a play presumed to have lost money, thus avoiding a pay-out and leaving the duo free to flee to Rio de Janeiro with the profits. Leo is afraid such a criminal venture will fail and they will go to prison; but Max eventually convinces him that his drab existence is no better than prison.

After reading many bad plays, the partners find the obvious choice for their scheme: Springtime for Hitler: A Gay Romp with Adolf and Eva at Berchtesgaden. It is "a love letter to Hitler" written in total sincerity by deranged ex-Nazi Franz Liebkind (German for "Frank Lovechild"), portrayed by Kenneth Mars. They convince him to sign over the stage rights, telling him they want to show the world "the true Hitler, the Hitler with a song in his heart." To guarantee that the show is a flop, they hire Roger De Bris (Christopher Hewett), a director whose plays "close on the first day of rehearsal". The part of Hitler goes to a charismatic, but only semi-coherent, hippie named Lorenzo St. DuBois, aka LSD (Dick Shawn), who can barely remember his own name and had mistakenly wandered into their theater during the casting call. After Bialystock sells 25,000 percent of the play to his regular investors (dozens of lustful little old ladies), they are sure they are on their way to Rio.

The result of all of this is a cheerfully upbeat and utterly tasteless musical play purporting to be about the happy home life of a brutal dictator. It opens with a lavish production of the title song, "Springtime For Hitler", which celebrates Nazi Germany crushing Europe ("Springtime for Hitler and Germany/Winter for Poland and France"). Unfortunately for Bialystock and Bloom, their attempt backfires as, after initial dumbfounded disbelief, the audience finds LSD's beatnik-like portrayal to be hilarious and misinterpret the production as a satire. Springtime For Hitler is declared a smash-hit, which means, of course, the investors will be expecting a larger financial return than can be paid out.

As the stunned partners turn on each other, they are confronted by a gun-wielding Franz Liebkind, who is enraged by LSD's portrayal of Hitler. He says they have broken the Siegfried Oath, which they took in a deleted earlier scene. In desperation, the three band together and blow up the theater to end the production. They are injured, arrested, and tried. In spite of Leo's impassioned statement praising Max, the jury finds them Incredibly Guilty and they go to prison. There, they run the same scam, creating a new Franz Liebkind musical starring their new colleagues. It is entitled Prisoners of Love."

The Dude can't make it any more clearly than that.

AEHI CEO Don Gillispie Comments, Agrees With Blog On Half-Truths

2010-12-08T12:02:00.001-07:00

“We understand the importance of updates on our funding process and we welcome the coverage. We just ask for a complete picture of relevant facts; half-truths are just as damaging to the public’s right to know as outright lies.”- AEHI CEO Don Gillispie

Well put, Don.

Now, the rest of the story:
That quote was actually from AEHI's "Idaho Energy Newsletter" number 23, July 8, 2009, and was part of an article in which Don whined (what's new?) about an AP story he thought was misleading.

Boo Hoo.
Boo F. Hoo.

As Don Gillispie would want, here is the rest of the newsletter article, because, as he puts it, "half truths are just as damaging as lies."

from Martin Johncox mjohncox@cableone.netreply-to
martin@alexanderandassociates.com
to Idaho Media martin@alexanderandassociates.com
date Wed, Jul 8, 2009 at 12:19 AM
subject Idaho Energy Newsletter #23 - AP errors, nuclear projects advance
7/8/09
Greetings,
This newsletter is a product of Alternate Energy Holdings Inc. (www.alternateenergyholdings.com), which has proposed the Idaho Energy Complex, a large advanced nuclear reactor with low cooling water requirements located about 65 miles southeast of Boise, in Elmore County. Company officials plan to submit a Combined Operating License Application to the Nuclear Regulatory Commission in 2010. The approval process is expected to take three years and cost $80 million. Construction could begin as soon as late 2012 and finish with power generation beginning in late 2016.
AEHI has signed an agreement with Source Capital Group Inc. to raise money for land, water rights and engineering services to obtain Nuclear Regulatory Commission approval to construct and operate a nuclear plant in Elmore County, Idaho, estimated to total some $70 million.
We’re on Twitter @aehi. Our Facebook page is at http://groups.to/nuclear. You may also be interested in Don Gillispie’s blog at www.cleanidahoenergy.wordpress.com. Don, the CEO of AEHI, gives his take on energy-related issues and we invite you to visit and comment.
Please call or write if you have any questions,
Martin Johncox
Alternate Energy Holdings Inc.
208-658-9100
Associated Press keeps important facts out of AEHI financial story
A June 29 Associated Press story intended to update readers on AEHI’s funding omitted crucial details and contained at least one gross factual error. Last year, AEHI and Powered Corp. announced plans to jointly develop reactors. The June 29 AP story (http://bit.ly/bqk9P) mentioned that Powered is dissolving, but failed to point out that AEHI June 6 announced a funding agreement with Source Capital Group (http://tinyurl.com/r49zt7). The AP story also botched describing a funding agreement with New York lender Cobblestone, stating that AEHI had a “deal” to “to build bed and breakfasts and mini-warehouses” – a statement that is factually inaccurate and bizarre, said AEHI CEO Don Gillispie. “We understand the importance of updates on our funding process and we welcome the coverage,” said AEHI CEO Don Gillispie. “We just ask for a complete picture of relevant facts; half-truths are just as damaging to the public’s right to know as outright lies.”

Again: Well put, Don.

This Just In: AEHI Files Form D To Sell $151M Offering

2010-12-07T13:10:00.000-07:00

This Just In:
Alternate Energy Holdings today filed a Form D, a "Notice of Exempt Offering of Securities". (more about Reg. D offerings here.)
Highlights:

"Year of Incorporation/Organization:
X Over Five Years Ago"- Gettin' kind of old to be callin' yerself a 'new startup', aren't ya?

"5. Issuer Size
X No Revenues"- Ouch. Five years. No Revenue. Ouch.

"6. Federal Exemption(s) Claimed:
X Rule 506." See SEC Page on Rule 506 of Regulation D.

"7. Type of Filing
X New Notice X First Sale Yet to Occur"

"13. Offering and Sales Amounts
Total Offering Amount $151,440,768 USD"- this looks like could be part of the Roswell Affair.

More to follow.

AEHI's Flyer in Investor's Business Daily- Making Claims and Seeking Investors

2010-12-07T11:00:00.003-07:00

The LucidAEHI Blog has an interesting post about a flyer AEHI distributed in Investor's Business Daily.

A few interesting claims are made in the advertisement: (all emphasis added, except where noted)

"As an independent, privately owned enterprise, AEHI is building sustainable power today, while avoiding the bureaucracy and complacency which dominates the industry."

"In partnership with CNNC in China, AEHI is producing the world's first commercially available nuclear seawater desalination system"

"Be a part of it. Turn this page to learn about investment opportunities." (Emphasis in original- possibly an AEHI Truth First!)

After the ~~mark~~ ~~dupe~~ potential investor turns the page, he is greeted with:

"Green World Water, working in partnership with CNNC in China, is producing the world's first commercially available nuclear seawater desalination system. It creates large amounts of clean water and power at the same time. Our Nigerian office, Green World Water Africa, recently began production."

Note the constant use of the present tense, "is building," "today," "is producing," "creates." And "recently began production."

Compare that purposeful use of the present tense in advertising with the careful wording in their latest 10-Q (filed two days after this flyer was distributed):

"....is a development stage enterprise", ..."in the process of acquiring and developing a nuclear plant site..." But, according to the ad, "AEHI is building sustainable power today".

Bullshit. By their own admission, they aren't building shit....yet. Wait- maybe that's all they are building today- shit. Bullshit, that is.

Check out this doozy regarding the cockamamie Green World Water "enterprise":

"Through our subsidiary, Green World Water™ Inc., we are identifying opportunities in developing countries to construct nuclear power plants that will, as a byproduct of energy production, desalinate water and provide potable water to communities where potable water is not readily available. We expect to develop commercial nuclear reactors on oceanfront sites, particularly in Latin America and western-friendly Middle Eastern countries and Africa, to co-generate clean energy and desalinate water. We believe that we can utilize available nuclear technology to address electrical energy needs while simultaneously producing fresh water from ocean intake. The Company has signed an agreement with China National Nuclear Corporation, or CNNC, a state-owned enterprise in China relating to the production of desalinization reactors in China to market on a worldwide basis. The agreement grants AEHI, through GWW, rights to market desalination reactors (CP-W 650 and 1100) outside of China for 10 years in exchange for a commission of 2 to 10% depending on the final negotiated price. We have currently signed Memoranda of Understanding, or MOUs, with one international company in India relating to the commencement of discussions regarding the feasibility of desalination nuclear reactors. We have recently opened an office in Lagos, Nigeria to promote the sale of GWW products.

Ronald Reagan said it best: "There you go again."

Again, they aren't "producing" (present tense) anything-yet. They have "signed an agreement" to market these reactors, on commission- like a used car or insurance salesman.

Alert Readers should grab a pen, an envelope and a stamp- because that's the only way AEHI will let you see exactly what that agreement says:

From AEHI's 10-K, Exhibit 10.3: Agreement to cooperate in the development of Joint Venture Agreement with the Nuclear Power Institute of China. -12/12/09: Incorporated by reference from the exhibits included in the Company’s Form 8-K filed with the Securities and Exchange Commission dated December 17, 2009. A copy can be provided by mail, free of charge, by sending a written request to:
Alternate Energy Holdings, Inc., 911 E. Winding Creek Dr., Suite 150, Eagle, ID 83616.
As soon as the Dude can get a scanned copy, it will be posted here.

Check out the rest of that 10-Q statement above: "We have currently signed Memoranda of Understanding...relating to the commencement of discussions regarding the feasibility of desalination nuclear reactors."

What the f....?

They need a Memorandum of Understanding just to commence discussions? And these discussions are regarding the feasibility of such a thing?

According to the ad, they "are producing" something that "creates" clean water.

According to the SEC, they might be able to market such a thing, if it even exists, and may talk to some folks in India about its feasibility.

Which is it, Don?

Investors ought to know.

.

A Reader Question About Gillispie Divorce

2010-12-06T14:16:00.002-07:00

An Alert Reader asks the following questions:
Very interesting, insightful, and entertaining blog. [Thank you!]
What, may I ask, do you hope to accomplish?
In the section on "Compliance with Section 16(a) of the Exchange Act" you refer to Don's "ex-spouse". What leads you to believe he is divorced?

Excellent questions, but epecially the second one.

Is he actually divorced?

Way back in 2009, AEHI Truth wondered about the 8,800,000 shares CEO Don Gillispie owned jointly with his spouse, and what would become of them in their then-pending divorce. At the time, the Bedford County, Virginia court register showed there was a property settlement agreement and order as of May 19, 2009.

Looking today at Virginia court records, (click the circuit court for Bedford County):

As Bob Seger would say, it's "Still the Same." Just the Property Settlement Agreement, and no final divorce decree is shown.
Yet, when we examine AEHI CEO Don Gillispie's very late SEC Form 5 (filed March 25, 2010, but due Feb 16) we see this interesting annotation:

"Explanation of Responses:
1. Donald Gillispie and Martha Gillispie(ex-spouse) held 8,800,000 shares in a joint account, of which 7,700,000 shares were transferred to Martha Gillipise, and 1,100,000 shares were transferred to Donald Gillipie as a result of their divorce settlement." (emphasis added)

Note the date of the second transaction listed- 5/08/2009, and the code "J4". This means that on May 8, 2009, Don Gillispie disposed of 7,700,000 shares of AEHI stock by transferring them to his "ex-spouse" (direct quote from Form 5) "as a result of his divorce settlement." This transaction was required to be reported on Form 4 "before the end of the second business day following the day on which a transaction...has been executed," which was May 12, 2009. (The J4 code means it is an "other disposition" (J) and "should previously have been reported on Form 4") (See Form 5 Instructions here.)

Don Gillispie and AEHI also use the term "ex-spouse" in the 10-K admitting the lateness of that and other Forms 5:
From page 36 of the 2009 Annual Report:
"Donald Gillipsie, president, Chief Executive Officer, Chief Operating Officer and Chairman of the Company, did not file a Form 5 on the timely-basis, with respect to the common shares awarded to him as compensation, and shares distributed to his ex-spouse from a jointly owned account, in the fiscal year ended December 31, 2009." (emphasis added)

The court records and these two fiilngs seem to be at odds. The question again presents itself:
Is he actually divorced?

More important than his marital status, though, is the disposition of those 7.7 million shares of AEHI.

Consider: as part of his divorce settlement, he transferred ownership of 7,700,000 shares to his "ex-spouse"- worth $616,000 on the day of the transfer (at .08 per share). Presumably, somewhere in the math of the property settlement agreement, he needed to kick in around $616,000 to make it equitable. And what did he choose to give up? 7.7 million shares of his own company.
How does that square with this recent (Sept 30th) self serving AEHI press release:

"...neither I, our CFO, board members, nor any officers who have day-to-day line responsibilities for running the company have sold a single share since the Company's inception..."- AEHI CEO Don Gillispie

Functionally, transferring shares to someone else to satisfy money owed or potentially owed in a settlement operates the same way as a sale. If he really wanted to "speak to our strong confidence in the outlook for our business," wouldn't he have retained the 7.7 million shares in the company that is "like a son to him" (especially at the now-bargain price of .08 per share) and instead paid his "ex-spouse" the $616,000 in cash?
Look at what Don recently said in yet another press release:
"So if investors get in at the current stock price, which is about 60 cents and they are comfortable waiting awhile, the returns could be pretty phenomenal. - Donald L. Gillispie"

So Don had the chance to "stay in" at .08 and instead chose to "get out" to the tune of 7.7 million shares, which today would be worth $4,620,000.00.

Would have been a "pretty phenomenal" return, don'cha think?

Alert readers in Virginia may want to pay a visit to the Bedford County Circuit court and have a look at the original documents on file there. Especially interesting will be the financial statements used to create the property settlement agreement.

Investors ought to know the whole story.

Don's Got a Busy Day Today

2010-12-02T06:53:00.008-07:00

Tentative Schedule:
7:50 AM: Issue vacuous, self-serving press release about a few daytraders' written supporting testimony for AEHI for tonight's P and Z hearing in Payette.
10:00 AM: Issue vacuous, self-serving, and rehashed old press release in attempt to manipulate stock price.
12:20 PM: Lunch with minders and assistants.
12:30 PM: Ask minders what he's supposed to say and how he's supposed to say it when asked questions by those pesky busybodies
1:30 PM: ~~Head to Court for Pretrial Conference in lawsuit to get $50,000 company check back:~~

Whoa!- Case Settled!

1:30 PM: Ask minders what he's supposed to do next, and what a "tweet" is.
3:30 PM: What the hell, let's issue another press release.
4:00 PM Update Facebook page to quell rising tide of unease among day-traders
5:00 PM Find leftover roll of stickers from Elmore County to hand out at Payette Planning and Zoning Hearing, helping to further rancor and division in a once-quiet community:

5:05 PM: Check closing stock price to see what flurry of press releases to send out the next morning.
7:00 PM: Show up to hearing, make sure minders are ready to keep stories as straight as possible. Water? No Problem! Cooling? It's Magic, right? Jobs? You Betcha! Razzle! Dazzle!

9:00 PM- Relax and unwind after yet another long day of shoveling shit.

.

AEHI CEO Don Gillispie Explains The Physics of Lightning Farms, Or: Yet Another Caption Contest!

2010-12-01T18:27:00.005-07:00

Gillispie ~~defending his Master's Thesis at MIT~~ explaining his latest scheme to potential investors.

"Ya see, if you gimme twenty bucks, I'll make it rain. Yeah, that's it. It'll rain $20 bills. You can't go wrong!"
Or else he'd make one hell of a televangelist....
Oh. Yeah. He does.

A Warning- or An Accurate Description?

2010-12-01T08:22:00.001-07:00

Ran across this warning recently:

"[AEHI] is a penny stock company." "...the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include :

control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer
manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases
“boiler room” practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons
excessive and undisclosed bid-ask differentials and markups by selling broker-dealers
the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the inevitable collapse of those prices with consequent investor losses

Gasp! Say it ain't so! Tell us happy thoughts, Don! AEHI ain't a penny stock, is it? These are the words of some rabid anti-nuke-California transplant, aren't they? Don?

Nope.

Those words are right from page 24 of Alternate Energy Holdings' SEC Form 10-K for the year ended 12/31/2009, filed on March 31, 2010.

But wait- there's more!

Remember AEHI's claim to be "completely above board" and that they "have never missed or been late on a filing"?

And remember the email exchange with "info@aehi.com"?

"The only filings that were late was when we changed attorneys earlier this year and couple form 4s I think were late but in the required quarter we never have we missed an important filing like a 10Q or 10K…that summarize happenings and we use lots of press releases to keep people informed…"

(compare that last part with the second bullet above!)

First, they claim to have "never been late or missed"- when talking to spooky day-traders on the stock-pumping Facebook page, that is. When talking to a potential investor who has been alerted to challenges to that claim, the company "info" rep (likely Gillispie himself) finally cops to "a couple form 4s I think were late" in a lame attempt to salvage credibility.

What the investor should have done, and what Gillispie should have done, and what the Facebook stock pumping page author should have done, was read AEHI's last 10-K, pages 36 and 37:

Compliance with Section 16(a) of the Exchange Act
"...the Company has determined that the following Reporting Persons have failed to comply with the Section 16(a) of the Exchange Act on a timely basis:

Donald Gillipsie, president, Chief Executive Officer, Chief Operating Officer and Chairman of the Company, did not file a Form 5 on a timely-basis, with respect to the common shares awarded to him as compensation, and shares distributed to his ex-spouse from a jointly owned account, in the fiscal year ended December 31, 2009.
Gregory E. Kane, Vice President and Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him in the fiscal year ended December 31, 2009.
John Franz, Vice President and Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him in the fiscal year ended December 31, 2009.
Rick J. Bucci, Vice President and Chief Financial Officer of the company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Jennifer Ransom, Senior Vice President and Secretary, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Leon Eliason, Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Kenneth A. Strahm Sr., Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Ralph Beedle, Director of the Company, did not file a form 5 on a timely-basis, with respect to the common shares awarded to him as compensation in the fiscal year ended December 31, 2009.
Mike Sellman, Director of the company, did not file a form 3 when he initially became a Reporting Person of the Company." [and he still hasn't, according to the SEC filings page for AEHI]

Wow. So it isn't just some rabid anti-nuke claiming those filings were late. It was AEHI and its CEO, Don Gillispie who declared those filings late, by signing that 10-K:

He can't even remember what's in his own filings. Or maybe, doesn't want people to know what's in his own filings.

Here's a fun quote from AEHI's own webpage:

"Most companies have Mission Statements, at AEHI we have principles."

Sure you do, Don.

News Flash: Get your story(ies) straight before you start talking about "principles".
.

Responses from "info@aehi.com" Analyzed- Where to Start?

2010-11-29T12:35:00.011-07:00

This is part one of an analysis of the post below- where AEHI responds to an investor's questions.

A couple of readers who have had personal email exchanges with AEHI CEO Don Gillispie state that the responses are almost certainly from Don himself as they match his style of writing and using strings of periods between "thoughts"

The first response starts out with a by-now familiar theme- blaming the 'rabid anti-nukes', or 'opponents', rather than focusing on the actual issue raised. In this case, the potential investor asks for the company's explanation of a check for $50,000 and for the many late filings as outlined in previous entries. The responder claims it is "misinformation" and "incorrect filing dates" and then continues the fallacious ad-hominem argument without showing how, even if true, that could change the facts surrounding either the check or the filing dates.

The responder then makes a shocking claim regarding the $50,000.00 check:

AEHI CEO Don Gillispie is "...entitled to be reimbursed in cash over $1 million if he wanted to take it for startup costs..."

When asked how the liability of a potential cash reimbursement of "over $1 million" is recorded, we get this amazing response:

"...it was offered orally, but he never claimed it so it is not on the books as the company needs the money..."

One searches in vain through company financial reports since inception to find a recorded liability of $1,000,000.00 due to an officer. Wouldn't generally accepted accounting principles mandate a company with an oral agreement to reimburse the CEO $1,000,000.00 record such a liability so that shareholders know the true picture of the company's solvency?

Only once since the company began reporting to the SEC has such a transaction and liability been recorded. Reported to shareholders on three quarterly reports in 2009, it was far less than $1 million (and it was well after the infamous "I can take money whenever I want" 50k check of January 25,2008)
From the March 31, 2009 10-Q:

See how the existence of a $1,000,000.00 "amount due to officer" would affect the balance sheet?
Now we see the clear motivation for the CEO to make it "...not on the books as the company needs the money"

But isn't that "unethical, deceptive and misleading", to use Don Gillispie's own words, to understate a potential liability of the company to make the balance sheet look better?

Or, is it the case that there is no such agreement, oral or otherwise, for the CEO to simply walk away with $1,000,000.00 whenever he wishes? Perhaps the more likely scenario is the "oral agreement" was a post-hoc justification for someone whose hand was caught in the cookie jar?

Here are the other balance sheets, which only indicate an "amount due officer" the now-paid-off $50,000 from 2009:

10Q Balance Sheet 6/30/2009

10Q Balance Sheet 9/30/2009

10-K (Annual Report) Balance Sheet 12/31/2009- Note "Amount Due Officer" is gone.

Here is the end-of 2008 balance sheet covering the period when he helped himself to $50,000 of the company's money:

10-K Annual Report Balance Sheet 12/31/2008 - Note no "amount due officer"

10-12G (Initial Registration Statement Balance Sheets for 2007 and 2006- also no "amount due officer"

Either there is an off-the-balance-sheet agreement that Don gets to take $1,000,000.00, or there isn't.

1. If there is such an agreement, then multiple reports to shareholders and the SEC have materially misstated the company's liabilities, to the tune of "over $1 million" (as claimed in the email).

Also, if there is such an agreement, "oral" as claimed in the email, or otherwise, another, possibly more serious, problem surfaces. According to the recently filed 8-K announcing the funding agreeement with "Centurion Private Equity LLC", the ability of AEHI to raise funds by selling shares (the "put agreement") terminates under certain conditions:

"2.3.2       Termination of Right to Put. The Company’s right to initiate subsequent Puts to the Investor shall terminate permanently (each, an “Automatic Termination”) upon the occurrence of any of the following:
(h) the Company has breached any covenant in Section 5, Section 6, Section 8 or Section 9 hereof;"

A couple of very significant and applicable of those covenants made by AEHI are:

"5.10.       Indebtedness; Solvency . The Company’s Quarterly Report on Form 10-Q for its fiscal quarter ended June 30, 2009 sets forth, as of June 30, 2009, all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments through such date. For the purposes of this Agreement, “Indebtedness” shall mean (a) any liabilities for borrowed money (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements, indemnities and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto)..."

"5.23        Material Agreements . Except as set forth in the Commission Documents, neither the Company nor any Subsidiary of the Company is a party to any written or oral contract, instrument, agreement commitment, obligation, plan or arrangement, a copy of which would be required to be filed with the SEC as an exhibit to an annual report on Form 10-K (collectively, “ Material Agreements ")"

If there is an agreement "off the books" for Don to take "over $1 million" (as stated in the email from info@aehipower.com), then the two covenants made by AEHI in sections 5.10 and 5.23 appear to have been breached.

However:

2. If there is not such an agreement, then (again), what was Jennie Ransom doing writing a $50,000 AEHI check for Don's private land transaction? Is this what shareholders can expect in the way of stewardship of the company's money? What if Don wants a new boat, airplane, or rocket ship?

Which is it, Don?
Investors want to know.

AEHI "Info Line": Dodges Questions, Admits Late Filings

2010-11-24T16:36:00.000-07:00

Below is a really interesting email received today. The name of the guy Don keeps blaming for authorship of this blog has been omitted. The name of the emailer and his email address were omitted at his request. Emphasis has been added to highlight some of the more outlandish things. Editorial commentary will be on a later post.
For now, enjoy- Don Gillispie, CEO, and AEHI, as they really are:

Dear "AEHI Truth Blog" Author:
Below you will find an email exchange I had earlier today with someone from Alternate Energy Holdings, Inc., in an attempt to get their side of, or answers to, the questions you raise regarding the $50,000 check and the late filings.
As you will see, the answers I was given were troubling from the perspective of a potential investor- they did not treat my inquiries with respect, choosing to launch an irrelevant ad hominem attack at the author rather than answer my questions directly. The responder then described a suspicious 'oral agreement with the board' for the CEO to take over One million dollars in cash whenever he wanted as justification for the 50,000 check, but did not answer on the late filings until pressed a second time, to which they misleadingly admitted to a 'couple of form 4s" being late when they switched attorneys- betraying their lack of understanding of the importance of timely filing insider trades.
Please feel free to post this, with my name and email redacted, as an example of how this company chooses to treat difficult questions from potential investors.

From: "X" [mailto:XXX@XXX.com]
Sent: Wednesday, November 24, 2010 7:25 AM
To: info@aehipower.com
Subject: Investor Questions

Hi,
Could you offer some clarification as to the check for $50,000 I read about here?-
http://aehitruth.blogspot.com/2010/11/case-cv-oc-2008-11412-plaintiffs.html
and the apparent late SEC filings listed here?
http://aehitruth.blogspot.com/2010/11/wrapping-it-all-up-e-z-sec-complaint.html
Thank you.
"X"

On Wed, Nov 24, 2010 at 9:13 AM, AEHI Info <info@aehipower.com> wrote:

Mr. "X",

Mr. [name of person not connected with this blog] is rabid opponent of our Idaho nuclear plant and this blog seeks to share misinformation to always put the company in a negative light. He reports misinformation and incorrect filing dates to put us in a bad light as well. He has no experience running a public company and is creative in his charges against us.

Mr. Gillispie started the company out of his own retirement funds and the board has agreed he is entitled to be re-reimbursed in cash over $1 million if he wanted to take it for startup costs and also, he worked the first 5 years like the directors without a salary. Without him doing that, there would be no AEHI. We doubt Mr. [same name of person] who has restraining orders, required anger management training and many debt liens in doing business in Idaho has ever made such a sacrifice. Our auditors found no discrepancy in our books in 2008. This is Mr.[same wrong name] trying to paint a negative picture of AEHI because he simply hates nuclear power in Idaho…he is not an honorable man.

The company filed a complaint with the Idaho Attorney General recently over this kind of misinformation and false charges from Mr. [wrong name again] and Streetsweeper.

AEHI is in compliance with all reporting to the SEC and is designated as fully reporting, and would not be trading on OTBQX if not.

Thank you for your questions.

Alternate Energy Holdings, Inc

911 E. Winding Creek Drive

Suite 150

Eagle, ID 83616

208-939-9311

208-939-9260 (fax)

www.alternateenergyholdings.com

This communication may contain information that is PROPRIETARY or PRIVILEGED, and CONFIDENTIAL, and may not be used or disclosed without the consent of AEHI.

From: [X] [mailto:xxx.xxx.com]
Sent: Wednesday, November 24, 2010 9:24 AM
To: AEHI Info
Subject: Re: Investor Questions

Is the potential cash reimbursement of over $1 million shown as an amount due or account payable to an officer of the company? And are you saying the filing dates as shown in that article there are wrong?
I was also wondering about the status of that complaint with the Attorney General.
Thank you.
"X"

On Wed, Nov 24, 2010 at 9:32 AM, AEHI Info <info@aehipower.com> wrote:

No, it was an offered orally, but he never claimed it so it is not on the books as the company needs the money….this company is like his son..everything to help it succeed…no debt because he uses his own funds to keep it going as needed…looks like we may be past that point now…

The complaint was just filed….AGs rarely conduct quick investigations

Are you an investors or Idaho intervener?

Alternate Energy Holdings, Inc

911 E. Winding Creek Drive

Suite 150

Eagle, ID 83616

208-939-9311

208-939-9260 (fax)

www.alternateenergyholdings.com

This communication may contain information that is PROPRIETARY or PRIVILEGED, and CONFIDENTIAL, and may not be used or disclosed without the consent of AEHI.

From:
[X] [mailto:xxx.xxx.com]
Sent: Wednesday, November 24, 2010 9:40 AM

To: AEHI Info
Subject: Re: Investor Questions

I'm a potential investor with a lot of experience, and successful because I ask questions. I don't recall ever being questioned as to my status when I inquire of potential issues with a company, but I understand the hype can be tiring.
Not sure how an oral agreement that he can take money out sits with me as I would expect a dividend to be paid when the plant begins production.
The filing dates? Are they incorrect as shown on the article?
"X"

From: AEHI Info <info@aehipower.com>
Date: Wed, Nov 24, 2010 at 10:03 AM
Subject: RE: Investor Questions
To: [X]

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…..

Dividends will be paid …these deregulated nuclear plants are very profitable and these startup costs are tax losses anyway

The only filings that were late was when we changed attorneys earlier this year and couple form 4s I think were late but in the required quarter we never have we missed an important filing like a 10Q or 10K…that summarize happenings and we use lots of press releases to keep people informed…

Mr. Gillispie says, anti-nukes will only spook skeptical investors that don’t do their homework anyway and day traders…

Good luck investing and Happy Thanksgiving

Alternate Energy Holdings, Inc

911 E. Winding Creek Drive

Suite 150

Eagle, ID 83616

208-939-9311

208-939-9260 (fax)

www.alternateenergyholdings.com

This communication may contain information that is PROPRIETARY or PRIVILEGED, and CONFIDENTIAL, and may not be used or disclosed without the consent of AEHI.

From: [X]>
Date: Wed, Nov 24, 2010 at 1:11 PM
Subject: Re: Investor Questions
To: AEHI Info <info@aehipower.com>
I have contacted the blog author regarding some of your responses. Their response was that your claim that [wrongly assumed person] is the blog author is false.
I'm not sure what relevance the authorship of the blog is and what this [other] fellow's participation has to do with the dates your form 4s were filed. They were for ownership changes, and are pretty important for investors to know what insiders are doing with shares in a timely fashion.

Where Are They Now? And Who Has The Shares?

2010-11-24T11:34:00.001-07:00

This "Issuer Information Statement" from November of 2006 (also on google docs) has some interesting information about plans the company had and companies Don started or was affilliated with four or so years ago.

So, we have two LLCs, one owned by Don Gillispie, and the other owned by his daughter Taylor Gillispie, that together at the time owned 7,800,000 shares, or 31% of Alternate Energy Holdings, Inc. If you add in Don's personal 27% stake, we have at that time 58% of the company owned by Don Gillispie, his daughter Taylor, and two LLCs they owned.
But as we have seen in previous posts, both Grace Glens Consulting, LLC and IPO Assist, LLC show a status of "cancelled" according to the Commonwealth of Virginia's State Corporation Commission website.
The question then arises: What became of the assets of those LLCs, especially the 7,800,000 shares of Alternate Energy Holdings, Inc., after their registrations were cancelled and the companies ceased operations? In light of AEHI CEO Don Gillispie's claim that "...neither I, our CFO, board members, nor any officers who have day-to-day line responsibilities for running the company have sold a single share since the Company's inception...", it would be very interesting to know what became of the shares owned by the companies owned by the CEO and his daughter. And what became of the 4,149,999 shares Taylor Gillispie received herself as Secretary/Treasurer? Altogether, that is 11,149,999 shares of the company, which, at today's absurd price of .649 per share, is a cool $7.2 million. Who has them now? Who got, or gets these shares?

Then, we have the matter of this little acquisition, from November of 2007:

Alternate Energy Holdings acquires Freedom Energy Solutions (M&A)

Alternate Energy Holdings, Freedom Energy Solutions
Date: 2007-11-09
Alternate Energy Holdings, Inc. has formally acquired 49.1% of Maryland based Freedom Energy Solutions LLC with an option to take controlling interest. Freedom Energy Solutions provides green solutions to meet the energy and budget needs of businesses and homeowners by custom designing energy solutions that provide lifetime energy neutrality through a combination of clean energy sources (wind, solar, geothermal) and power management. Currently, Freedom Energy Solutions and the Maryland Energy Administration are planning an 88-acre renewable energy and environmental campus in Mount Airy's Windy Ridge Park in Maryland. (Source: Marketwire, Nov. 08, '07) Contact: Don Gillispie, CEO, Alternate Energy Holdings, info@alternateenergyholdings.com, http://www.alternateenergyholdings.com/, Freedom Energy Solutions, (410) 871-9020, info@freedomenergysolutions.com, http://www.freedomenergysolutions.com/

A search of the Maryland Secretary of State's website shows the registered agents of that now-forfeited company:

The company's initial 10-12g registration statement shows these owners and registered agents each receiving 75,000 shares:

So, the company issues 150,000 shares of AEHI stock for what is stated as a 49.1% stake in another company, Freedom Energy Solutions, LLC. Does AEHI still show this as an asset? Or when the company ceased operations, did AEHI get 49.1% of the assets of the other company? Or what?

Razzle. Dazzle. Baffle.
Repeat as Necessary.

Note: The other entries marked in the list above, Robert Sparrow, and A and A Development, were covered in previous blog entries.

~~Up next~~: Coming up eventually: Lightning Strikes!

Keeping Up Appearances

2010-11-23T17:25:00.007-07:00

For a company trying to conceal its true intent, one useful strategy might be the old Razzle-Dazzle:

The USS Gillispie, Headed To Your County Next?

From the Wikipedia entry link above:

"At first glance Dazzle seems unlikely camouflage, drawing attention to the ship rather than hiding it, but this technique was developed after the Allied Navies were unable to develop effective means to disguise ships in all weather.
Dazzle did not conceal the ship but made it difficult for the enemy to estimate its type, size, speed and heading. The idea was to disrupt the visual rangefinders used for naval artillery. Its purpose was confusion rather than concealment.^[1] An observer would find it difficult to know exactly whether the stern or the bow is in view; and it would be equally difficult to estimate whether the observed vessel is moving towards or away from the observer's position."

Hmmmm.

That makes a lot of sense now, doesn't it?