 |
| This document is from PrivCo, but it was referenced in the April 24, 2013 Hearing that I covered in my post. |
May 1, 2013 UPDATE: Fisker Auto "Smoking Tires": Cronyism, Corruption and Criminal.
In the middle of tracking the Failing Fisker Auto story, I found The Fisker Papers. According to a report by PrivCo, The New York-based research firm charges that the DOE “applied negligent underwriting standards in granting the DOE Loan and Credit Agreement to Fisker, which was by any commercial standard clearly a financially unqualified borrower for the loan.”
Since about April 23, PrivCo has been publishing documents on Fisker's loan guarantee through the DOE's Advanced Technology Vehicle Manufacturing Program, of which we think came from the document dump by the House Oversight and Government Reform Committee in connection with this April 24 hearing –– which we covered and Marita's can be found at Townhall.com, the Heartland Institute as well as other places: "Fisker: Free to Make Flashy Cars in Finland."
We have reached out to PrivCo to gather more information on the evidence that that are leaking out. We find it extremely relevant to this huge green energy, crony corruption case, which, if these documents prove to be accurate, turn this case from crony capitalism to criminal. And while we hope to do a follow up story, here are some of the published information from PrivCo:
Dated April 26: Original Confidential U.S. Government Document Installment #1 of Many - More to be released every day by PrivCo as a matter of the public interest until the U.S. Department of Energy stops lying to the American people they serve and admits the truth regarding the $529 Million U.S. Taxpayer Loan Approval, and their cover-up of every Loan default through issuance of temporary "Waiver Letters" at financial reporting times so Fisker could say it is "Not In Default". It is not PrivCo's business to be involved in politicized matters, but rather to research privately-held FISKER AUTOMOTIVE and its $1.2 BILLION in Venture Capital. We told the Dept. of Energy yesterday - 1 day after a U.S Congressional Oversight Committee on the DOE Fisker Loans - to please release the truth to U.S. Taxpayers: Fisker is insolvent, and the D.O.E. is using every legal loophole a private lender would NEVER think of using to delay foreclosure on the Loans, despite taxpayers' daily losses from doing so, and making public statements and perjured annual reports and now Congressional Hearings that the Fisker Loans are not in default. The DOE refused. Therefore, we must as our civic duty release more documents every day as part of "The PrivCo Fisker Papers" of over 1,000 pages of government and legal source documents obtained by PrivCo over weeks of financial research on privately-held FISKER AUTOMOTIVE. PrivCo has no political position on the wisdom of Government Loan Programs. Our government lying to the American People and other government agencies is so clearly documented, however, that it is our civic obligation to make public with regard to our extensive financial costs incurred in the matter.
Dated April 29: "The Fisker Papers": FISKER AUTO's $529M D.O.E. Taxpayer Loans -- NEW TOP-SECRET INTERNAL GOV'T DOCs Prove: Years-Long Cover Up of Privately-Held FISKER's Endless Loan Defaults, D.O.E. Loan Office's Ongoing Lies To U.S. Taxpayers, Congress, Federal Agencies & Auditors To Keep Loan Defaults Secret
End update
During the course of unleashing the Green Corruption Files, part of my exciting tasks include combing through the various House Oversight hearings on green energy, which began in the late summer of 2011 at the time Solyndra went bust –– FBI probe and all –– wasting $535 million of taxpayer money.My posts have ranged from
outgoing Energy Secretary Chu's March 2012 "grade-A" appearance, claiming that all of the Energy Department's "junk loans" were approved based on "merit" to the shocking admission by the CEO of First Solar, Michael Ahearn, "most of our full time [employees] are outside the US."
Along the way Abound Solar blamed China for its demise and the CEO of NRG Energy, David Crane confirmed to being a frequent White House visitor, however, he had NO clue as to suspicious email exchanges that were seeking the president's participation on a huge $1.6 billion DOE loan.
Later, I emphasized the shady email practices by the former Department of Energy (DOE) Loan Advisor, Jonathan Silver, as well as the fact that Mr. Silver lied about the DOE loans NOT being rushed and how those inside the DOE had NO investor knowledge.
In early November, we reported on the House Oversight leaked emails that were dumped on Halloween (a memorandum, Appendix I and the 350+ page Appendix II), which prove White House participation and pressure, as well as the fact that politics was a key factor inside the DOE decision making process.
As we spent weeks analyzing over 150 DOE emails, we found that projects were rushed so that announcements could coincide with visits, speeches, and photo ops, as well as providing talking points for the president –– collectively they revealed a series of questionable practices, including coercion, cronyism and cover ups.
In early November, we reported on the House Oversight leaked emails that were dumped on Halloween (a memorandum, Appendix I and the 350+ page Appendix II), which prove White House participation and pressure, as well as the fact that politics was a key factor inside the DOE decision making process.
As we spent weeks analyzing over 150 DOE emails, we found that projects were rushed so that announcements could coincide with visits, speeches, and photo ops, as well as providing talking points for the president –– collectively they revealed a series of questionable practices, including coercion, cronyism and cover ups.
April 24, 2013: Green Energy Oversight: Examining the Department of Energy’s Bad Bet on Fisker Automotive
In a long overdue hearing before the House Oversight and Government Reform Committee today, Fisker Auto and one Department of Energy (DOE) official finally faced brutal questions and concerns over the $529 million DOE "junk loan" that was awarded to the hybrid carmaker.
After the presentation of Vice President Joe Biden's infamous Fisker endorsement as a "bright path to new jobs," with the following outrageous gaff, “This is seed money that will return back to the American consumer in billions and billions and billions of dollars in good, new jobs,” then came the opening statements by both sides of the political isle –– with the Democrats on the panel, despite the obvious, denying any crony capitalism.
Ohio Republican Jim Jordan, chairman of the subcommittee, who held the hearing today in his opening statement declared, "Fisker should have never received taxpayer money; it was rated CCC+...it was a junk grade investment."
Again this is consistent with the Obama Energy Department's pattern, of which we know that out of the 1705 program (created under the stimulus) $16 billion in loans were doled out to 26 projects, of which 22 were rated “junk grade” due to their poor credit quality. The DOE loan guarantee program that Jordan attacked as "one of the most disastrously mismanaged and corrupt programs in U.S. history" –– a claim committee Democrats scoffed at, of course.
.
Jordon acknowledged that Mr. Henrik Fisker (the former Executive Chairman and Founder of Fisker Automotive) denies any improper political influence, even fingering a major Fisker investor –– Kleiner Perkins with two partners in particular Ray Lane and John Doerr.
While records reveal a different story, sure enough Mr. Fisker's testimony included the following statement, "I am not aware and do not believe that any improper political influence was used in connection with the company's loan application or subsequent negotiations with the Department of Energy."
Again this is consistent with the Obama Energy Department's pattern, of which we know that out of the 1705 program (created under the stimulus) $16 billion in loans were doled out to 26 projects, of which 22 were rated “junk grade” due to their poor credit quality. The DOE loan guarantee program that Jordan attacked as "one of the most disastrously mismanaged and corrupt programs in U.S. history" –– a claim committee Democrats scoffed at, of course.
.
Jordon acknowledged that Mr. Henrik Fisker (the former Executive Chairman and Founder of Fisker Automotive) denies any improper political influence, even fingering a major Fisker investor –– Kleiner Perkins with two partners in particular Ray Lane and John Doerr.
While records reveal a different story, sure enough Mr. Fisker's testimony included the following statement, "I am not aware and do not believe that any improper political influence was used in connection with the company's loan application or subsequent negotiations with the Department of Energy."
After a short recess, there were quite a few fireworks and even an interesting exchange over some sort of secret, yet formal, offer to sell Fisker and repay part of the loan money, which involved Kleiner Perkins.
But is was the heated debate between Republican Darrell E. Issa and Democrat Matt Cartwright, of which earlier spilled over to Mr. Nicholas Whitcombe, the Supervisory Senior Investment Officer, at the DOE Loan Programs Office, regarding some DOE emails that were leaked to the press, when sparks flew. Correspondences that prove "the Obama administration was warned as early as 2010 that electric car maker Fisker Automotive Inc. was not meeting milestones set up for a half-billion dollar government loan, nearly a year before U.S. officials froze the financing after questions were raised about the company's statements, newly released documents show," as reported by the Associated Press late Tuesday.
Later, Mr. Jordon asked about the ATVM loan, noting Fisker's dismal credit rating –– a loan that was initially rejected by the Credit Review Board, and was undercollateralized. During the course of this interaction, Mr. Withcombe claimed that all the loans were based on "merit," but he had no recollection as to the financial status of the other 149 loan applicants.
But is was the heated debate between Republican Darrell E. Issa and Democrat Matt Cartwright, of which earlier spilled over to Mr. Nicholas Whitcombe, the Supervisory Senior Investment Officer, at the DOE Loan Programs Office, regarding some DOE emails that were leaked to the press, when sparks flew. Correspondences that prove "the Obama administration was warned as early as 2010 that electric car maker Fisker Automotive Inc. was not meeting milestones set up for a half-billion dollar government loan, nearly a year before U.S. officials froze the financing after questions were raised about the company's statements, newly released documents show," as reported by the Associated Press late Tuesday.
Later, Mr. Jordon asked about the ATVM loan, noting Fisker's dismal credit rating –– a loan that was initially rejected by the Credit Review Board, and was undercollateralized. During the course of this interaction, Mr. Withcombe claimed that all the loans were based on "merit," but he had no recollection as to the financial status of the other 149 loan applicants.
Additionally, Mr. Jordon addressed a 2009 email from the COO of Fisker, Mr. Bernhard Koehler, who wrote to someone inside the DOE pressuring the need for the taxpayer-funded loan due to the fact that they couldn't meet payroll.
Issa later sternly reprimanded Mr. Whitcombe, asserting that the Obama administration has stonewalled and lied to the Committee, while exposing the obvious lack of transparency. Issa reminded him that DOE officials, more specifically former Loan Program Executive Director Jonathan Silver had violated the Federal Records Act by using private emails to do DOE work. Also that Silver and John Doerr of Kleiner Perkins had several meetings in 2010 and 2011 –– a series of emails that I had found on another car loan under consideration at the DOE, Next AutoWorks, in the huge House Oversight email dump last October, and exposed this past January.
Correspondences and private meetings that go beyond what I found, and were chronicled by the Wall Street Journal: "Nearly Sideswiped by Another Green Car." "Emails referenced in a House Oversight subcommittee hearing this week confirm every suspicion about the degree to which powerful moneymen worked the system on behalf of their investments, pushing their political contacts to roll over Energy's credit department," wrote Kimberley Strassel regarding Next AutoWorks.
Once again, Mr. Whitcombe was clueless: he probably didn't "get the memo" –– oops I mean g-mail...
Worse, "the Obama Energy Department is keeping tight rein on documents" –– stonewalling, as affirmed by Issa –– which means we only have part of the real story behind this green energy, crony corruption $529 million DOE deal. But here's what we do know...
The Fisker Fiasco
Fisker Auto, which was given $200 million of the $529 million in federal loan guarantees (awarded in 2009 by the Obama administration), has been struggling for some time –– even making it on my 2012 Green Alert: 52 failures list, in the troubled category. Ironically, Fisker is also tied to another failed stimulus-funded company: A123 Systems (now B456 Systems Inc.), which produced lithium-ion batteries for electric cars, and took at least $133 million of their $374 million government hand outs (tax credits and grants) with them to China.
However, as of late, the hybrid carmaker's troubles have gone from bad to worse.
This past April, Fisker laid off most of its workers at their Southern California office, meanwhile adding to the drama, in March of this year, Henrik Fisker, the co-founder and executive chairman of Fisker Automotive Inc, quit in the midst of the turmoil, which according to the New York Times, was due to “disagreements with management.”
In short, Reuters but it this way...
This week more Fisker news hit the roadway: "Fisker lost $557K per electric vehicle sold" and the "Department of Energy seized $21M from Fisker" of past due money that was owed to taxpayers via that large DOE loan. And we're supposed to think that the DOE is now our hero, when in reality they kept funding Fisker despite all the red flags.
Moreover, Fisker is also "facing lawsuits from at least three different groups for not paying its bills," reported Breitbart news this month. Apparently, Fisker is even unable to pay for their fancy website, fiskerautomotive.com, and their designer, "Ignited filed suit on April 12 claiming that Fisker owes $535K in unpaid bills."
Shameful, considering the money behind the scenes...
Al Gore’s Fisker Automotive Half-billion Dollar DOE Loan Ignited Red Flags but "Black Out" on the Entire Scoop
Sometime in 2008 Kleiner Perkins, the Silicon Valley Venture Capital firm, heavily invested in Fisker, however, the precise size of the investment wasn't disclosed. What we do know, according to the Wall Street Journal, is that "it was more than $10 million and one of the bigger investments," of which the Journal also noted, "[Fisker] is one of the first deals in which former Vice President Al Gore provided advice for Kleiner, which Mr. Gore joined in November [2007] as a partner."
By December 2008, "Fisker turned to the DOE's $25 billion Advanced Technology Vehicle Manufacturing loan program (ATVM), which Congress had funded [in 2008, under the Bush administration] to launch new, high-efficiency vehicles," and just under a year later, they snagged government assistance.
It was around June 2009 that the DOE starting handing out money from ATVM –– a program that drew about 150 applicants, however, only five won under the Obama administration, igniting red flags, and even spurring on lawsuits.
Then in September 2009, Josh Mithcell and Stephen Power (again from the Wall Street Journal) took notice, Gore-Backed Car Firm Gets Large U.S. Loan, reporting on Fisker's $529 million dollar government loan guarantee, which was cinched in May 2010. The awards to Fisker (and Tesla) had prompted concern from companies that had their bids for loans rejected, and "criticism from groups [like Citizens Against Government Waste] that question why vehicles aimed at the wealthiest customers are getting loans subsidized by taxpayers."
In fact this past November, we were given the exclusive on one of those companies that had their loan rejected by the DOE: XP Technologies filed a lawsuit against the federal government concerning the DOE’s denial of XP Technology’s loan guarantee application. The complaint alleges: “criminal activities did take place by DOE staff and affiliates.”
As we keep an eye on that lawsuit, we can confirm that Fisker was part of the "Favored Five," and can be found in my "Cruising Down the Green Cronyism Road" post. Thus far $8.4 billion was steered out of this program, of which three of the five green auto companies are directly tied to President Obama. Meanwhile, "both Ford Motor Co. and Nissan were heavily engaged in negotiations with the Administration over fuel economy standards for model years 2012-2016 at the time DOE was considering their applications."
Last fall –– as part of Marita Noon's Townhall.com column on "Obama's green losers" –– it was noted that Fisker received the half a billion-dollar ATVM loan, of which was supposed to create about 2,000 permanent jobs in Wilmington, Delaware. Reports at the time stated: “Fisker plans to use $169.3 million of its loan to work with U.S. suppliers to produce the more expensive $89,000 flashy plug-in Karma sports hybrid sports coupe, which will be developed at its Michigan and California offices, but then will be assembled “overseas.” The other $359.36 million will go toward producing "Fisker’s Project Nina, which will be entirely manufactured in the United States.”
Behind the Scenes: Vice President Joe Biden Involved in Fisker Delaware Deal, Then Touts it as a Major Job Creator: "Seed money that will return back to the American consumer in billions and billions and billions of dollars in good, new jobs.”
While Vice President Biden denies any involvement in the Fisker deal, we do know that he was actively pressuring the $1.3 billion Shepherds Flat wind deal. And contrary to all denials, we know that the president and the White House –– in one way or another –– "participated" in many of these DOE loan transactions.
Adding to the evidence is the December 2009 account by the Wall Street Journal, whereas Neil King Jr. chronicles "a flurry of events," ensuring Fisker got their taxpayer money...
Mr. King continues...
By the way, in addition to the $529 million DOE loan, Fisker –– as promised by Gov. Markell –– snagged $21 million in grants and loans from the state of Delaware.
It doesn't hurt that Fisker was represented by the law firm, Debevoise & Plimpton LLC, whose employees were big donors to Obama and Democrats –– "with top lawyer David Rivkin reportedly served on President Obama’s National Finance Committee, even hosting a fundraiser for presidential candidate Obama in his home in 2007."
Not to mention that behind the scenes, John Doerr of Kleiner Perkins (President Obama's and former Vice-President Al Gore's "wealthy green buddy," with more on them in a bit) in 2011 had meetings with Jonathan Silver, the former Executive Director of the Loans Programs Office at the DOE, regarding another car loan –– that we know of, yet the Fisker hearing revealed that there were many more.
So much for those inside the DOE claiming that the loans were based on "merit;" that they were NOT rushed; and those making the decisions had NO clue as to any investors. Even Mr. Silver –– under oath, in the July 18, 2012, Oversight Hearing –– emphatically informed the Committee...
NOTE: See my "Citigroup’s Massive 'Green' Money Machine" February post and the "11 stunning revelations from Larry Summers’ secret economics memo to Barack Obama" by the American Enterprise Institute for complete story.
Since 2009, we've been exposing President Obama's clean-energy dirt, using various sources that not only include numerous House Oversight hearings, reports, and DOE emails, as well as GAO and IG reports. Adding to our relentless pursuit we took into account other analysis by Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University, as well her testimony before the House Committee on Oversight and Government Reform in June 2012, as well as other government watchdog groups like Judicial Watch, the Center for Public Integrity (CPI), the Government Accountability Institute (GAI), Open Secrets.org, Citizens Against Government Waste (CAGW), the American Enterprise Institute (AEI), plus many other reliable sources.
Yet in reality, all you have to do is follow the money and connect the dots, which proves that Green Corruption is the largest, most expensive and deceptive case of crony capitalism in American history. Nevertheless, for a year now I've focused on, and dissected, most of the 33 loans (costing taxpayers almost $35 billion), chronicling the fact that the majority were excessively risky investments. Adding that not only is Obama's Energy Department plagued with cronyism (used as political payback for his rich bundlers, donors and supporters along with other high-ranking Democrats and their green cronies), we find corporate welfare, and "green outsourcing" at the helm –– with Fisker just a speed bump on this filthy clean-energy road filled with failures and corruption.
Two Women (one Citizen & one energy Columnist) join forces on One Mission: to expose piece of the Green Corruption scandal at a time.
Once again, Mr. Whitcombe was clueless: he probably didn't "get the memo" –– oops I mean g-mail...
Worse, "the Obama Energy Department is keeping tight rein on documents" –– stonewalling, as affirmed by Issa –– which means we only have part of the real story behind this green energy, crony corruption $529 million DOE deal. But here's what we do know...
The Fisker Fiasco
Fisker Auto, which was given $200 million of the $529 million in federal loan guarantees (awarded in 2009 by the Obama administration), has been struggling for some time –– even making it on my 2012 Green Alert: 52 failures list, in the troubled category. Ironically, Fisker is also tied to another failed stimulus-funded company: A123 Systems (now B456 Systems Inc.), which produced lithium-ion batteries for electric cars, and took at least $133 million of their $374 million government hand outs (tax credits and grants) with them to China.
However, as of late, the hybrid carmaker's troubles have gone from bad to worse.
This past April, Fisker laid off most of its workers at their Southern California office, meanwhile adding to the drama, in March of this year, Henrik Fisker, the co-founder and executive chairman of Fisker Automotive Inc, quit in the midst of the turmoil, which according to the New York Times, was due to “disagreements with management.”
Fisker Automotive raised almost $1.4 billion from investors as diverse as Leonardo di Caprio and Kleiner Perkins, obtained a $528 million loan from the DoE, ballooned to 600+ employees, defaulted on loans or investment conditions at least four separate times, spent $535,000 on a website, got sued by its own employees and evicted from its primary business location, and was finally investigated by the government — apparently for its incredible ability to burn a billion dollars while delivering only a few thousand actual completed cars.Last December rumors were racing through cyberspace that "Fisker board members had discussed the prospect of filing for bankruptcy," but now most news outlets are confirming that Fisker's bankruptcy is inevitable.
This week more Fisker news hit the roadway: "Fisker lost $557K per electric vehicle sold" and the "Department of Energy seized $21M from Fisker" of past due money that was owed to taxpayers via that large DOE loan. And we're supposed to think that the DOE is now our hero, when in reality they kept funding Fisker despite all the red flags.
Moreover, Fisker is also "facing lawsuits from at least three different groups for not paying its bills," reported Breitbart news this month. Apparently, Fisker is even unable to pay for their fancy website, fiskerautomotive.com, and their designer, "Ignited filed suit on April 12 claiming that Fisker owes $535K in unpaid bills."
Shameful, considering the money behind the scenes...
Al Gore’s Fisker Automotive Half-billion Dollar DOE Loan Ignited Red Flags but "Black Out" on the Entire Scoop
Fisker Automotive, which was founded in 2007 by Henrik Fisker, and besides Kleiner Perkins, other investors include "New Enterprise Associates and Palo Alto Investors as well as high-net-worth individuals," noted Lou Whiteman of the Deal Pipeline.
Sometime in 2008 Kleiner Perkins, the Silicon Valley Venture Capital firm, heavily invested in Fisker, however, the precise size of the investment wasn't disclosed. What we do know, according to the Wall Street Journal, is that "it was more than $10 million and one of the bigger investments," of which the Journal also noted, "[Fisker] is one of the first deals in which former Vice President Al Gore provided advice for Kleiner, which Mr. Gore joined in November [2007] as a partner."
By December 2008, "Fisker turned to the DOE's $25 billion Advanced Technology Vehicle Manufacturing loan program (ATVM), which Congress had funded [in 2008, under the Bush administration] to launch new, high-efficiency vehicles," and just under a year later, they snagged government assistance.
It was around June 2009 that the DOE starting handing out money from ATVM –– a program that drew about 150 applicants, however, only five won under the Obama administration, igniting red flags, and even spurring on lawsuits.
Then in September 2009, Josh Mithcell and Stephen Power (again from the Wall Street Journal) took notice, Gore-Backed Car Firm Gets Large U.S. Loan, reporting on Fisker's $529 million dollar government loan guarantee, which was cinched in May 2010. The awards to Fisker (and Tesla) had prompted concern from companies that had their bids for loans rejected, and "criticism from groups [like Citizens Against Government Waste] that question why vehicles aimed at the wealthiest customers are getting loans subsidized by taxpayers."
In fact this past November, we were given the exclusive on one of those companies that had their loan rejected by the DOE: XP Technologies filed a lawsuit against the federal government concerning the DOE’s denial of XP Technology’s loan guarantee application. The complaint alleges: “criminal activities did take place by DOE staff and affiliates.”
As we keep an eye on that lawsuit, we can confirm that Fisker was part of the "Favored Five," and can be found in my "Cruising Down the Green Cronyism Road" post. Thus far $8.4 billion was steered out of this program, of which three of the five green auto companies are directly tied to President Obama. Meanwhile, "both Ford Motor Co. and Nissan were heavily engaged in negotiations with the Administration over fuel economy standards for model years 2012-2016 at the time DOE was considering their applications."
$529 million
|
2,000
|
Apr 2010
|
2
|
Closed
|
|
$5.907 billion
|
33,000
|
Sep 2009
|
13
|
Closed
|
|
$1.448 billion
|
1,300
|
Jan 2010
|
2
|
Closed
|
|
$465 million
|
1,500
|
Jan 2010
|
2
|
Closed
|
|
$50 million
|
900
|
Mar 2011
|
1
|
Closed
|
Last fall –– as part of Marita Noon's Townhall.com column on "Obama's green losers" –– it was noted that Fisker received the half a billion-dollar ATVM loan, of which was supposed to create about 2,000 permanent jobs in Wilmington, Delaware. Reports at the time stated: “Fisker plans to use $169.3 million of its loan to work with U.S. suppliers to produce the more expensive $89,000 flashy plug-in Karma sports hybrid sports coupe, which will be developed at its Michigan and California offices, but then will be assembled “overseas.” The other $359.36 million will go toward producing "Fisker’s Project Nina, which will be entirely manufactured in the United States.”
Behind the Scenes: Vice President Joe Biden Involved in Fisker Delaware Deal, Then Touts it as a Major Job Creator: "Seed money that will return back to the American consumer in billions and billions and billions of dollars in good, new jobs.”
While Vice President Biden denies any involvement in the Fisker deal, we do know that he was actively pressuring the $1.3 billion Shepherds Flat wind deal. And contrary to all denials, we know that the president and the White House –– in one way or another –– "participated" in many of these DOE loan transactions.
Adding to the evidence is the December 2009 account by the Wall Street Journal, whereas Neil King Jr. chronicles "a flurry of events," ensuring Fisker got their taxpayer money...
When tiny Fisker Automotive Inc. hit a financing glitch last year [2008], threatening its plan to build a fancy gasoline-electric hybrid car in Finland, it turned to the U.S. Department of Energy.As mentioned earlier, Fisker sought a loan from the DOE in December of 2008, and it turns out that by late spring [2009], the "DOE was pushing ahead briskly on the Karma loan," However Karma "presented a political challenge: It was already being assembled, under contract, at a plant in Finland."
The DOE had a bolder idea. Why not also step up the company's plans to develop a less-expensive model, and assemble it in a closed U.S. auto plant?
Within months, Vice President Joe Biden, the former senator from Delaware, was helping lure the embryonic car company to a shuttered General Motors Co. factory four miles from his house in Wilmington, right across the tracks from Biden Park. Soon, Fisker Automotive, a two-year-old business that has yet to sell a car, won loans from the federal government totaling $528 million.
Mr. King continues...
DOE then came to Fisker with a surprising proposal: Find a U.S. site to build their cheaper, code-named the Kx, and DOE would agree to fund both projects together, of which according to David Anderson, a partner at the Palo Alto Investors venture-capital firm, "The government's interest sped it all up."As we move through Mr. King's account, we find a series of meetings, calls, "drive byes," and promises that involved CEO Henrik Fisker, Democrat Delaware Senator, Tom Carper, Democrat Gov. Jack Markell, and friends at Kleiner Perkins as well as discussions with Vice President Biden and his staff.
By August 2009, the DOE hadn't yet ruled on Fisker's loan request, and Delaware's governor and congressional delegation began peppering U.S. Energy Secretary Steven Chu with calls on Fisker's behalf.
In early September 2009, Gov. Markell told Fisker that if it occupied the shuttered GM plant it would get an array of state incentives worth up to $22 million, including $9 million in cash for utilities. He promised to buy the first car off the line.
On Sept. 17, Gov. Markell ran into Mr. Chu at an event in Pennsylvania. "I know, I know -- Fisker," Mr. Chu said as soon as he saw him, according to the governor, who said Mr. Chu told him he was "hearing from everyone in Delaware."
Five days later, Mr. Chu announced the government had signed a provisional agreement to lend Fisker nearly $170 million to complete engineering of the Karma, as well as $360 million to develop the less-expensive model Kx, which the company then began to call the Nina...
By the way, in addition to the $529 million DOE loan, Fisker –– as promised by Gov. Markell –– snagged $21 million in grants and loans from the state of Delaware.
It doesn't hurt that Fisker was represented by the law firm, Debevoise & Plimpton LLC, whose employees were big donors to Obama and Democrats –– "with top lawyer David Rivkin reportedly served on President Obama’s National Finance Committee, even hosting a fundraiser for presidential candidate Obama in his home in 2007."
Not to mention that behind the scenes, John Doerr of Kleiner Perkins (President Obama's and former Vice-President Al Gore's "wealthy green buddy," with more on them in a bit) in 2011 had meetings with Jonathan Silver, the former Executive Director of the Loans Programs Office at the DOE, regarding another car loan –– that we know of, yet the Fisker hearing revealed that there were many more.
So much for those inside the DOE claiming that the loans were based on "merit;" that they were NOT rushed; and those making the decisions had NO clue as to any investors. Even Mr. Silver –– under oath, in the July 18, 2012, Oversight Hearing –– emphatically informed the Committee...
“This loan [Abound]–– like all the loans underwritten by career professionals, supported by outside specialists –– it was reviewed by career professionals from multiple executive branch offices.” “It was not rushed, the review took place over several years.” “It was not given to friends –– indeed no one in the Loan Program had any idea what individuals were involved in this [Abound] or any other transaction, nor did we care.” The questioning continued. Silver was asked if he saw any evidence of pay-to-play during his tenure. Silver’s response: “None whatsoever, sir—as I say, almost nobody that I am aware of in the Loan Program even knew who the individuals were who had invested, either directly or indirectly, into these companies.”
But let's get back to our VP...
In October 27, 2009, Vice President Joe Biden toured Fisker’s Delaware plant to tout the DOE's Loan Program, and as reported by ABC News, "Standing in a shuttered General Motors plant in Wilmington, Del., Vice President Biden proclaimed that a half-billion-dollar Department of Energy loan would transform the idled site into a production line for electric cars."
“Biden heralded the Energy Department's $529 million loan to the start-up electric car company called Fisker as a bright, new path to thousands of American manufacturing jobs,” and stated, “This is seed money that will return back to the American consumer in billions and billions and billions of dollars in good, new jobs.”
Those jobs didn’t materialize — at least not in America, and the ones that did, are gone now. The Karma, with the approval of the Obama administration, was produced in Finland. And what did the CEO have to say about that? After citing that "there was no contract manufacturer in the U.S. that could actually produce our vehicle, Mr. Fisker followed up with, "We're not in the business of failing; we're in the business of winning. So we make the right decision for the business," Fisker said. "That's why we went to Finland."
Then two years after the loan was awarded, the Washington Post stated that Fisker had "missed early manufacturing goals and has gradually pushed back plans for U.S. production and the creation of thousands of jobs,” and announced that the Karma “failed to meet a promised energy-efficiency standard.”
In February 2012, Fisker laid off "an undisclosed number of staff" in order to qualify for more government loans. Then again in April 2012, Fisker laid off 12 more workers from its Delaware factory with one of the laid-off employees describing the Delaware Fisker plant as "absolutely empty."
Of course, news of defective battery packs and subsequent fires haven’t help sell the Karma, meanwhile Forbes contributor Warren Meyer found that while it serves a social purpose –– "Hollywood celebrities and the ultra rich, who want to display their green credentials, no longer have to be stuck with a little econobox. They can now enjoy a little leg room and luxury" –– the "Fisker Karma electric car gets worse mileage than an SUV."
Furthermore, Fisker has faced multiple 2012 sales prediction downgrades for its first car release, delivery and cash flow troubles," and by May 2012, it was clear that Fisker would never build electric cars in the United States. And though the company has balked at Solyndra comparisons, as we predicted at the end of 2012, Fisker is about to crash.
As documented a couple weeks ago by David Shepardson at the Detroit News Washington Bureau: "Several published reports said Fisker was actively making preparations for a bankruptcy filing that could come within a week."
Fisker Just a Speed Bump on the Road for Doerr and Gore at Kleiner Perkins and President Obama's Expensive and Deceptive Clean Energy Agenda
As mentioned, Fisker Auto was an investment of Kleiner Perkins, the California Venture Capital firm that I began to unravel in 2010, stressing that over fifty percent of their Greentech Portfolio secured all kinds of loans, grants, and special tax breaks –– with Fisker just one of many.
Al Gore, along with his "billionaire climate buddy," John Doerr –– whose friendship dates as far back as the 90's –– are partners at Kleiner Perkins, and they have an interesting history, both personally and professionally, chronicled in my January 2013 post.
Obviously, Gore's "climate crisis crusade" and "green" is well documented, and Gore support for Obama is no secret, but Gore has been known to visit the Obama White House and his acolytes captured plenty of key positions inside Obama's Green Team as well as the Energy Department.
Nevertheless, Doerr is considered "a very big-ticket Obama donor" by New York Magazine, and in February 2011, hosted a star-studded billionaire Silicon Valley dinner for the president. We also and find that "top Kleiner Perkins executives have given more than a million dollars to federal candidates and parties since 1991, most of it going to Democrats. Obama himself has received $19,000 from the company’s employees," reported the National Review Online
Doerr not only sat on the President Obama’s Jobs Council for two years, he was part of the president's Economic Advisory Board (PERAB), established by executive order in 2009. Yet Doerr stepped into the scene much sooner, and early on he ultimately shaped what went into the energy sector of the 2009-Recovery Act, of which over $90 billion of taxpayer money earmarked to save the planet –– a trillion-dollar bill that Kleiner Perkins also spent money lobbying for.
Doerr's persuasion was reflected in the stimulus bill via his "meetings with Obama's transition team and leaders in Congress" as well as his list of “five recommendations” that included a cap-and-trade system, smart grid, solar, and more federal money to be allocated toward renewable energy –– all of which would benefit his portfolio dramatically.
And so it has...
My January 2013 calculations –– with 66 listed –– as one-person researcher, I've found much more since my 2010 analysis, concluding that over 50 percent (again) are confirmed stimulus winners (36 of the 66). This means that ultra-rich Doerr and Gore –– through their alternative energy investment firm –– have raked in at least $1 billion in green-government subsidies through the stimulus package, which includes Fisker Auto and its ATVM loan, but not their shining green company, Silver Springs Networks connected to at least $1.3 billion in smart grid grants.
Add in Al Gore's partnership at Kleiner Perkins along with their collaboration with Gore's London based Generation Investment Management, and calculations jump significantly: they are tied to at least $10 billion from the Green Bank of Obama.
Department of Energy Plagued with Cronyism, Corporate Welfare, and "Green Outsourcing"
As, I've mentioned many times, the Department of Energy Loan Guarantee Program consist of three separate programs, Section 1703, Section 1705, and Advanced Technology Vehicles Manufacturing (ATVM), of which since 2009, they have doled out $34.5 billion of taxpayer money that thus far has funded 33 projects.
In the Summer of 2010, I had reported that the U.S. Government Accountability Office (GAO) had been in the process of reviewing the DOE's execution of the Loan Guarantee Program (LGP), which was established as part of the Energy Policy Act of 2005 and set up for innovative energy projects and expanded upon (in size and scope) under the Obama administration via the 2009-Recovery Act.
On July 12, 2010, the GAO released their findings and recommendations, and found, amongst other things, that the DOE lacked "comprehensive performance goals," particularly in relation to the DOE's "broad policy goal of helping to mitigate climate change and create jobs." Furthermore, the GAO stated that the "DOE's implementation of the LGP has treated applicants inconsistently, favoring some and disadvantaging others."
Meanwhile in March of 2011, the Department of Energy's Inspector General, Gregory Friedman –– not a political appointee –– rebuked the alternative energy loan and grant programs, even testifying about "investigative matters,” covering a disturbing feature –– contracts and grants were “directed to friends and family."
But this year we found out the 2009-Recovery act was about implementing the Obama agenda, not about economic recovery or creating jobs. In December 2008 a shocking set of internal emails were exposed: a 57-page, “Sensitive & Confidential” memo written by the Former Director of President Obama's National Economic Council, from 2009 to 2011, Larry Summers. And Mr. Summers writes to Obama, "The short-run economic imperative was to identify as many campaign promises or high priority items that would spend out quickly and be inherently temporary. … The stimulus package is a key tool for advancing clean energy goals and fulfilling a number of campaign commitments."
In October 27, 2009, Vice President Joe Biden toured Fisker’s Delaware plant to tout the DOE's Loan Program, and as reported by ABC News, "Standing in a shuttered General Motors plant in Wilmington, Del., Vice President Biden proclaimed that a half-billion-dollar Department of Energy loan would transform the idled site into a production line for electric cars."
“Biden heralded the Energy Department's $529 million loan to the start-up electric car company called Fisker as a bright, new path to thousands of American manufacturing jobs,” and stated, “This is seed money that will return back to the American consumer in billions and billions and billions of dollars in good, new jobs.”
Those jobs didn’t materialize — at least not in America, and the ones that did, are gone now. The Karma, with the approval of the Obama administration, was produced in Finland. And what did the CEO have to say about that? After citing that "there was no contract manufacturer in the U.S. that could actually produce our vehicle, Mr. Fisker followed up with, "We're not in the business of failing; we're in the business of winning. So we make the right decision for the business," Fisker said. "That's why we went to Finland."
Then two years after the loan was awarded, the Washington Post stated that Fisker had "missed early manufacturing goals and has gradually pushed back plans for U.S. production and the creation of thousands of jobs,” and announced that the Karma “failed to meet a promised energy-efficiency standard.”
In February 2012, Fisker laid off "an undisclosed number of staff" in order to qualify for more government loans. Then again in April 2012, Fisker laid off 12 more workers from its Delaware factory with one of the laid-off employees describing the Delaware Fisker plant as "absolutely empty."
Of course, news of defective battery packs and subsequent fires haven’t help sell the Karma, meanwhile Forbes contributor Warren Meyer found that while it serves a social purpose –– "Hollywood celebrities and the ultra rich, who want to display their green credentials, no longer have to be stuck with a little econobox. They can now enjoy a little leg room and luxury" –– the "Fisker Karma electric car gets worse mileage than an SUV."
Furthermore, Fisker has faced multiple 2012 sales prediction downgrades for its first car release, delivery and cash flow troubles," and by May 2012, it was clear that Fisker would never build electric cars in the United States. And though the company has balked at Solyndra comparisons, as we predicted at the end of 2012, Fisker is about to crash.
As documented a couple weeks ago by David Shepardson at the Detroit News Washington Bureau: "Several published reports said Fisker was actively making preparations for a bankruptcy filing that could come within a week."
Fisker Just a Speed Bump on the Road for Doerr and Gore at Kleiner Perkins and President Obama's Expensive and Deceptive Clean Energy Agenda
As mentioned, Fisker Auto was an investment of Kleiner Perkins, the California Venture Capital firm that I began to unravel in 2010, stressing that over fifty percent of their Greentech Portfolio secured all kinds of loans, grants, and special tax breaks –– with Fisker just one of many.
Al Gore, along with his "billionaire climate buddy," John Doerr –– whose friendship dates as far back as the 90's –– are partners at Kleiner Perkins, and they have an interesting history, both personally and professionally, chronicled in my January 2013 post.
Obviously, Gore's "climate crisis crusade" and "green" is well documented, and Gore support for Obama is no secret, but Gore has been known to visit the Obama White House and his acolytes captured plenty of key positions inside Obama's Green Team as well as the Energy Department.
Nevertheless, Doerr is considered "a very big-ticket Obama donor" by New York Magazine, and in February 2011, hosted a star-studded billionaire Silicon Valley dinner for the president. We also and find that "top Kleiner Perkins executives have given more than a million dollars to federal candidates and parties since 1991, most of it going to Democrats. Obama himself has received $19,000 from the company’s employees," reported the National Review Online
Doerr not only sat on the President Obama’s Jobs Council for two years, he was part of the president's Economic Advisory Board (PERAB), established by executive order in 2009. Yet Doerr stepped into the scene much sooner, and early on he ultimately shaped what went into the energy sector of the 2009-Recovery Act, of which over $90 billion of taxpayer money earmarked to save the planet –– a trillion-dollar bill that Kleiner Perkins also spent money lobbying for.
Doerr's persuasion was reflected in the stimulus bill via his "meetings with Obama's transition team and leaders in Congress" as well as his list of “five recommendations” that included a cap-and-trade system, smart grid, solar, and more federal money to be allocated toward renewable energy –– all of which would benefit his portfolio dramatically.
And so it has...
My January 2013 calculations –– with 66 listed –– as one-person researcher, I've found much more since my 2010 analysis, concluding that over 50 percent (again) are confirmed stimulus winners (36 of the 66). This means that ultra-rich Doerr and Gore –– through their alternative energy investment firm –– have raked in at least $1 billion in green-government subsidies through the stimulus package, which includes Fisker Auto and its ATVM loan, but not their shining green company, Silver Springs Networks connected to at least $1.3 billion in smart grid grants.
Add in Al Gore's partnership at Kleiner Perkins along with their collaboration with Gore's London based Generation Investment Management, and calculations jump significantly: they are tied to at least $10 billion from the Green Bank of Obama.
Department of Energy Plagued with Cronyism, Corporate Welfare, and "Green Outsourcing"
As, I've mentioned many times, the Department of Energy Loan Guarantee Program consist of three separate programs, Section 1703, Section 1705, and Advanced Technology Vehicles Manufacturing (ATVM), of which since 2009, they have doled out $34.5 billion of taxpayer money that thus far has funded 33 projects.
In the Summer of 2010, I had reported that the U.S. Government Accountability Office (GAO) had been in the process of reviewing the DOE's execution of the Loan Guarantee Program (LGP), which was established as part of the Energy Policy Act of 2005 and set up for innovative energy projects and expanded upon (in size and scope) under the Obama administration via the 2009-Recovery Act.
On July 12, 2010, the GAO released their findings and recommendations, and found, amongst other things, that the DOE lacked "comprehensive performance goals," particularly in relation to the DOE's "broad policy goal of helping to mitigate climate change and create jobs." Furthermore, the GAO stated that the "DOE's implementation of the LGP has treated applicants inconsistently, favoring some and disadvantaging others."
Meanwhile in March of 2011, the Department of Energy's Inspector General, Gregory Friedman –– not a political appointee –– rebuked the alternative energy loan and grant programs, even testifying about "investigative matters,” covering a disturbing feature –– contracts and grants were “directed to friends and family."
But this year we found out the 2009-Recovery act was about implementing the Obama agenda, not about economic recovery or creating jobs. In December 2008 a shocking set of internal emails were exposed: a 57-page, “Sensitive & Confidential” memo written by the Former Director of President Obama's National Economic Council, from 2009 to 2011, Larry Summers. And Mr. Summers writes to Obama, "The short-run economic imperative was to identify as many campaign promises or high priority items that would spend out quickly and be inherently temporary. … The stimulus package is a key tool for advancing clean energy goals and fulfilling a number of campaign commitments."
NOTE: See my "Citigroup’s Massive 'Green' Money Machine" February post and the "11 stunning revelations from Larry Summers’ secret economics memo to Barack Obama" by the American Enterprise Institute for complete story.
Yet in reality, all you have to do is follow the money and connect the dots, which proves that Green Corruption is the largest, most expensive and deceptive case of crony capitalism in American history. Nevertheless, for a year now I've focused on, and dissected, most of the 33 loans (costing taxpayers almost $35 billion), chronicling the fact that the majority were excessively risky investments. Adding that not only is Obama's Energy Department plagued with cronyism (used as political payback for his rich bundlers, donors and supporters along with other high-ranking Democrats and their green cronies), we find corporate welfare, and "green outsourcing" at the helm –– with Fisker just a speed bump on this filthy clean-energy road filled with failures and corruption.
Two Women (one Citizen & one energy Columnist) join forces on One Mission: to expose piece of the Green Corruption scandal at a time.
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