Easthampton Massachusetts Wind Turbine Company Charged with Misleading Investors
Massachusetts securities regulators today filed civil charges against an Easthampton man for allegedly using misleading information to raise capital for a plan to sell purportedly innovative roof-top wind-turbines here and abroad. Secretary of State William Galvin alleges that Mark Maynard lured investors to his company, Urban Power, with promises of revenues of nearly $4 million by this year -- but to date has sold only two of the turbines , worth a total of $105,000.
"There were representations regarding the number of units being sold overseas, misrepresentations about the units being sold here, misrepresentations about the general conditions of the company, which were designed to entice investors to invest," Galvin said.
Galvin's office alleges that Urban Power hired unregistered promoters to pitch unregistered securities on web sites, in local newspapers, by email and using social media. The project was featured in a report on this radio station, as well as in the Daily Hampshire Gazette and the Springfield Republican.
In a brief telephone conversation, Maynard told New England Public Radio he had not yet seen the allegations. Maynard says his company has "a lot of pending sales" in the works. Secretary of State Galvin says many of the investors found so far are relatively small, with the largest single investment his investigators have found coming in at $50,000 dollars. Galvin says the case highlights the dangers of so-called internet "crowdfunding" legislation that's being considered on Capito Hill. He says that without significant changes, the measure would provide online securities scammers an end run around state-level watchdogs.
Galvin wants Urban Power to return investors money, if illegal activity is found, and to stop soliciting investors.