THE TALLEST DEER STAND IN MINNESOTA: THE FARMERS BOUGHT WIND TURBINES, BUT ALL THEY GOT WAS WIND

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THE TALLEST DEER STAND IN MINNESOTA:
The Farmers Bought Wind Turbines, But All They Got Was Wind

Shawn Dooling, a 42-year-old promoter, formed Renewable Energy SD (“RESD”). Its purported purpose was to sell and develop wind turbine energy systems.

Dooling offered to sell to farmers “state of the art” wind turbines that would supposedly last 25 years. As an inducement to the farmer to purchase the system, Dooley represented it would utilize grants in which the federal government would pay farmers 30 percent of the cost of the turbine. The rest of the purchase price was to be recouped by Minnesota’s “net metering” law, whereby local utility companies would pay farmers for the cost of energy produced by the turbines.

Dooling offered the farmers a “turnkey” approach to wind energy, meaning he would obtain the necessary permits, make the federal energy applications, arrange the financing, lay the concrete platform, and install the tower and turbine. Once operational, he would turn over an operational and effective wind turbine to the farmer. Unfortunately, he didn’t deliver many turbines, and in cases where turbines were delivered, they often either did not work or did not deliver the promised energy.

Dooling presented the program as a “win-win” proposition, telling farmers who bought into the system that they would invest several hundred thousand dollars on the turbine and but then recoup their investment through the government grants and utility company payments. He primarily sold his program to farmers in Minnesota, Iowa, and Wisconsin. He made a variety of misrepresentations to the farmers, including that:

  1. His company would timely install a functional wind turbine;
  2. His company would maintain the operability of the wind turbine energy system;
  3. The turbine energy system would produce sufficient revenue under Minnesota’s net metering law to pay for the turbine;
  4. The turbine energy system would meet the requirements to qualify for federal grants.

According to Kensington farmer Marv Jensen, he paid about $200,000 to Dooling’s company. While he suffered a substantial loss when the turbine was not delivered, he good naturally said that the uncompleted wind turbine—the tower of which rose 160 feet into the air but lacked a turbine on top—was the tallest deer stand in Minnesota. A farmer in Jackson County, who paid Dooling’s company $100,000 and also got a tower but no tower but no turbine said: “I’ve got the tallest flagpole in Jackson County.”

Meanwhile, Dooling purchased for himself expensive Bentleys, a Lamborghini, a Ferrari and Audis.

Apropos to Attorney General Swanson’s investigation, he also bought and operated a 37-foot boat named “Under Surveillance,” which floated on Lake Minnetonka. In 2013 Attorney General Swanson filed a lawsuit against Dooling’s company alleging:

  1. Consumer Fraud;
  2. Deceptive Trade Practices;
  3. False Advertising;
  4. Unjust Enrichment; and
  5. Breach of Fiduciary Duty.

After getting an injunction to stop further sales by Dooling, Swanson’s office filed claims on behalf of Minnesota farmers in U.S. Bankruptcy Court. She also referred the matter to the United States Attorney, who obtained a conviction against Dooling after a six-day trial in 2018.

The lawsuit was one of the earliest in the nation to attack fraud in the sale of wind energy. News reports indicate that:

In April 2015, two years later, David Spalding—a Texas wind turbine promoter— was convicted of fraud and ordered to pay more than $3.3 million in restitution to his customers.

In December of 2018 Cody Fell, a Arkansas promoter, pled guilty to wire fraud and tax evasion relating to soliciting investors for a “revolutionary” wind turbine.

In April of 2020 New York Attorney General Letitia James obtained a court order which enjoined Kean Stimm and Kean Wind Turbines from the sale of investments in wind turbines.

In September of 2021, Christopher Condron was convicted and ordered to repay $8.7 million in grants he obtained from the U.S. Department of Treasury for a variety of shell companies that purportedly developed wind turbine farms.

Too often, innovative technology becomes the fulcrum for economic fraud. It is important that law enforcement agencies move quickly, as did Attorney General Swanson, to make investors aware of such schemes.

REFERENCES:

  1. Dan Browning, “State’s Attorney General Sues Windmill Firm”: Star Tribune, January 26, 2013, P. A1.
  2. “3. “Excelsior Man Convicted After Stealing Millions from Customers in Wind Energy Scheme” August 29, 2018
  3. United States v. Shawn Dooling, United States District Court, Case No. 17-CR-87 (August 29, 2018)
  4. State v. Renewable Energy v. Polaris America, Hennepin County District Court, Case No. 27-CV-13-1554 (2013)