Arizona Corporation Commission orders company to pay $8 million for stock fraud scheme
Mar 20, 2024, 4:05 AM | Updated: 9:11 am
Tucson-based ABCO Energy and its CEO were ordered to repay investors $7.7 million and pay an additional $1 million fine for selling unregistered securities and fraud. (Pexels photo)
(Pexels photo)
PHOENIX – A Tucson-based solar installation company has been ordered to pay more than $8 million for fraud and for selling unregistered securities.
The Arizona Corporation Commission found David Shorey, CEO of ABCO Energy, Inc. and ABCO Solar, Inc, violated the Arizona Securities Act.
The investigation found Shorey sold unregistered securities and did not have permission to offer or sell securities in Arizona. Shorey targeted investors from the United Kingdom and Spain, according to the ACC.
Shorey was also at fault for not disclosing previous violations against him and his companies to potential investors. He also did not accurately portray the company’s financial health and did not disclose accurate sales commissions, which resulted up to 65%, according to the ACC.
Shorey will be required to pay investors $7.7 million, to go along with an additional $1 million fine for defrauding investors through an energy and solar stock program.
