SunEdison shareholder alleges embezzlement, fraud, seeks investigation

By Caroline Salls

Pittsburgh, Oct. 6 – SunEdison, Inc. shareholder Stephen A. Miller asked the U.S. Bankruptcy Court for the Southern District of New York to order an investigation into alleged embezzlement and securities fraud by the company’s management and the alleged destruction of documents by KPMG, according to a motion filed Wednesday.

Miller said the investigation should be conducted by the U.S. Trustee responsible for overseeing SunEdison’s bankruptcy case and the Federal Bureau of Investigation.

Because of the alleged destruction of records, Miller said thereis no way to know how much allegedly embezzled cash is missing.

According to the motion, the authors of a civil complaint have evidence of attempts to gain from criminal acts, including a $169 million, 15% loan issued by Goldman Sachs.

“Has Goldman Sachs placed other loans at 15% for other customers in the same interest rate environment, or did Goldman Sachs use an opportunity to enrich itself?” Miller asked in his motion.

Miller said bankruptcy judge Stuart M. Bernstein has made no effort to heed his request to stop payments from the sale of SunEdison projects until a criminal investigation concludes that the payment of funds isn’t aiding and abetting the criminal acts that allegedly created the company’s bankruptcy.

“While all courts are allowed to make wrong bad judgments, no court is allowed to aid and abet criminals who benefit from their crimes,” Miller said in the motion.

In addition, Miller said claims from SunEdison counsel that the company is “hopelessly insolvent” are untrue.

Based in Maryland Heights, Mo., SunEdison operates renewable power plants. It filed for bankruptcy on April 21 under Chapter 11 case number 16-10992.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.