Asked About “Colorado’s Solyndra,” Obama Laughs Off Question About Politically-Connected Companies Going Bankrupt And Taking Taxpayers’ Dollars Along With It

IN AN INTERVIEW WITH KUSA, OBAMA LAUGHS OFF QUESTION ABOUT ABOUND SOLAR’S BANKRUPTCY AND THE TAX DOLLARS LOST

Obama Laughs Off A Direct Question About Abound Solar’s Bankruptcy And The Tax Dollars Lost. KYLE CLARK: “In a national address, you touted the stimulus money going to Abound Solar – a Colorado company connected to one of your billionaire fundraisers. Now, as you may know, Abound Solar is out of business and under criminal investigation. Those jobs are gone and taxpayers are out about 60 million dollars. How do you answer critics who see Abound Solar as Colorado’s Solyndra – a politically connected clean energy company that went under and took our money with it?” PRESIDENT OBAMA: “(Laughs) Well, Kyle, I think that if you look at our record that these loans that are given out by the Department of Energy for clean energy have created jobs all across the country and only about four percent of these loans were going to some very cutting-edge industries that are going to allow us to figure out how to produce energy in a clean, renewable way in the future and create jobs in Colorado and all across the country. And some of them have failed but the vast majority of them are pushing us forward into a clean energy direction. And that’s good for Colorado, that’s good for the country. And these are decisions, by the way, that are made by the Department of Energy, they have nothing to do with politics.” (“9NEWS Questions President Obama On Libya Attack,” KUSA 9News [Denver, CO], 10/26/12)

The Story Of Abound Solar

Taxpayer-Backed Abound Solar Is Now Under Criminal Investigation For Possible Securities Fraud, Consumer Fraud And Financial Misrepresentation. “Abound Solar, the defunct solar-panel manufacturer, is under criminal investigation for possible securities fraud, consumer fraud and financial misrepresentation, the Weld County district attorney’s office said Thursday. Loveland-based Abound closed its Colorado plant in July and filed for Chapter 7 bankruptcy liquidation in a move that left 125 workers without jobs and taxpayers holding the bag for up to $60 million in defaulted loans. The DA’s office said no criminal charges have been filed. Weld County officials confirmed the existence of an investigation to The Denver Post last week, but Thursday’s announcement provided more detail on the nature of the investigation. The securities-fraud investigation stems from allegations that ‘officials at Abound Solar knew products the company was selling were defective, and then asked investors to invest in the company without telling them about the defective products,’ the DA’s office said in a news release. Similarly, the consumer-fraud allegation is that Abound knowingly sold defective panels to customers. The third subject of investigation is that Abound allegedly misled financial institutions when the company was seeking loans.” (Steve Raabe, “Weld County Details Investigation Of Abound Solar,” The Denver Post, 10/25/12)

• In 2010, Abound Solar Received A $100,000 Tax Break From Weld County In Colorado, But Now The County “Is Seeking Nearly $1 Million In Unpaid 2011 Property Taxes From Abound And More Than $800,000 In Unpaid Property Taxes From 2012.” “Weld County also gave Abound a tax break when it set up its headquarters in Longmont. In 2010, it received about $100,000 in a tax break for meeting certain requirements, including job growth. In 2011, county commissioners suspended that tax break out of concern the criteria was no longer being met. The county is seeking nearly $1 million in unpaid 2011 property taxes from Abound and more than $800,000 in unpaid property taxes from 2012. Sources tell 7NEWS that the company’s finances are under scrutiny.” (Marshall Zelinger, “Abound Solar Under Investigation By Weld County District Attorney; Received $68 Million Stimulus,” Denver Channel ABC 7 , 10/6/12)

• In 2012, “Tens Of Thousands Of Replacement Solar Panels” Were Ordered Citing Different Reasons Describing The Original Panels As “Low Performance, Under Performance, And Catastrophic Failures.” “7NEWS obtained internal documents from 2012 that show orders for tens of thousands of replacement solar panels. The orders cite different reasons for the replacements including, ‘low performance,’ ‘under performance’ and ‘catastrophic failures.’” (Marshall Zelinger, “Abound Solar Under Investigation By Weld County District Attorney; Received $68 Million Stimulus,” Denver Channel ABC 7 , 10/6/12)

In July 2012, Abound Solar Announced It Would File For Bankruptcy And Lay Off 125 Employees. “Abound Solar Filed For Bankruptcy On Monday And Will Liquidate, Becoming The Latest U.S. Solar Panel Company To Fold Despite Government Support. Stiff competition from China and subsidy cuts in Europe have created a steep fall in panel prices, sending solar companies, including Solyndra LLC and Evergreen Solar Inc (ESLRQ.PK), into bankruptcy protection. Abound Solar, which filed for a Chapter 7 liquidation in U.S. Bankruptcy Court in Delaware, had said last week that it planned to shut down and would lay off 125 employees.” (Caroline Humer, “Abound Solar Files To Liquidate in Bankruptcy,” Reuters, 7/2/12)

In February 2012, Abound Solar Fired “About 180 Full-Time Workers And 100 Part Time Employees” And Delayed Plans For A New Factory In Indiana. “In February, Abound cut its workforce by about 70 percent, firing about 180 full-time workers and 100 part-time employees. It also put on hold plans to build a large new factory in Indiana.” (Mark Jaffe, “Colorado Solar Panel Maker Abound Solar To File For Bankruptcy,” The Denver Post, 6/28/12)

OBAMA HAS TOUTED ABOUND SOLAR IN THE PAST

On July 3, 2010, President Obama Cited The Loan To Abound Solar In His Weekly Address, Touting The 2,000 Construction Jobs And 1,500 Permanent Jobs The Company Would Create. “The second company is Abound Solar Manufacturing, which will manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs. A Colorado plant is already underway, and an Indiana plant will be built in what’s now an empty Chrysler factory. When fully operational, these plants will produce millions of state-of-the-art solar panels each year.” (President Barack Obama, Weekly Address , Washington D.C., 7/3/10)

• Video Of Obama’s Weekly Address Titled: “A Solar Recovery”

On July 8, 2010, Obama Cited Abound Solar At An Event In Kansas City, Highlighting The Empty Chrysler Parts Supplier Plant That They Would Be Taking Over. OBAMA: “And we’re seeing similar things all across America, with incentives and investments that are creating wind turbines and solar panels. We’re seeing investments in energy-efficient appliances and home-building materials, and in advanced battery technologies and clean energy vehicles. So just give you a couple examples, just last week, Abound Manufacturing in Colorado received backing for two plants to produce solar panels. This is going to create 2,000 construction jobs and 1,500 permanent jobs. One of the plants is actually taking over what’s now an empty Chrysler supplier factory.” (President Barack Obama, Remarks By The President On The Economy , Kansas City, MO, 7/8/10)