Alternate Energy Holdings Inc. Hit By Investor Lawsuit Over Alleged Securities Laws Violations
July 20, 2012 (Update) -- Settlement proposed in the Alternate Energy Holdings, Inc. class action for those who held shares of PINK: AEHI from 10/23/06 through 12/14/10. Settlement in the amount of $450,000.
According to the Notice:
The Settlement resolves the lawsuit concerning whether Defendants made materially false and misleading statements and engaged in a scheme to manipulate and artificially inflate the market price of Alternate Energy stock by (1) paying stock promoters to create artificial demand in the marketplace through end of day stock purchases, and failing to disclose the same; (2) misrepresenting that the Company’s officers and directors had never sold any shares of the Company’s stock; (3) understating the amount of the Company’s officers’ and directors’ compensation from the Company; (4) misrepresenting that a company that published a favorable article about the Company was not paid by the Company; and (5) misrepresenting the Company’s true financial condition and potential business prospects.
December 2011 -- Motion to dismiss denied.
December 2010 -- An investor in Alternate Energy Holdings Inc. (PINK:AEHI) filed a lawsuit in the United States District Court for the District of Idaho in the aftermath of the trading halt of Alternate Energy Holdings Inc. (PINK:AEHI) shares. On Dec. 15 The U.S. Securities and Exchange Commission ("SEC"), on December 14, 2010, issued an order to temporarily suspend trading of Alternate Energy Holdings’ common stock through Dec. 28. The plaintiff alleges defendants engaged in a scheme to manipulate and artificially inflate the market price of AEHI shares.
According to the complaint the plaintiff alleges that Alternate Energy Holdings, Inc. its CEO Donald L. Gillispie and Senior Vice President Jennifer Ransom, both currently on leave of absence, violated between September 20, 2006 through December 14, 2010 Sections of the Securities Exchange Act of 1934. The plaintiff claims in the class action complaint that Alternate Energy Holdings Inc and certain of its officers and directors between September 20, 2006 through December 14, 2010 engaged in a scheme to manipulate and artificially inflate the market price of Alternate Energy Holdings stock (AEHI)
Shares of Alternate Energy Holdings Inc. traded until January 08 2010 at roughly $0.10 per share and jumped in the following months to $0.87 per share in October 2010. up until Dec. 13 when AEHI shares traded at $0.575 per share.
Then on Dec. 15, Alternate Energy Holdings, Inc. (OTCQB:AEHI) announced that the SEC on December 14, 2010, issued an order to temporarily suspend trading of Alternate Energy Holdings’ common stock through Dec. 28 because of questions that have been raised about the accuracy of certain publicly disseminated information regarding Alternate Energy Holdings.
On December 16, 2010, the SEC charged the company's top officers with fraudulently raising funds for a $10 billion nuclear power project. The SEC said it is seeking an emergency court order to freeze the assets of the company and the two executives.
The SEC alleges that Alternate Energy Holdings Inc. 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.
The SEC says it has obtained records that Gillispie and Ransom secretly unloaded stock holdings and funneled the money back to Gillispie. The SEC’s complaint among other things alleges that Alternate Energy Holdings Inc 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 and spend lavishly on jewelry, cruises, a Maserati sports car and other items.
On December 21, 2010, Alternate Energy Holdings Inc announced its CEO Don Gillispie and Vice President Jennifer Ransom take a voluntary leave of absence.