The SEC today charged a self-described power company in Idaho with fraudulently raising funds for a $10 billion nuclear power project, and is seeking an order to freeze the assets of the company and two executives.  The SEC suspended trading in "AEHI" stock earlier this week.

The SEC investigation was conducted by Kristin Waldron, David Berman, Heather Marlow, and Tracy Davis of the San Francisco Regional Office.

    SEC Allegations.    Alternate Energy Holdings Inc. (AEHI) has raised millions of dollars from investors in Idaho and throughout the U.S. and Asia while fraudulently manipulating its stock price through misleading public statements that conceal the secret profits reaped by its CEO Donald Gillispie and SVP Jennifer Ransom.  Gillispie had touted the company as a tremendous investment opportunity that could rival Exxon Mobil in profitability, despite the fact that AEHI has essentially no revenue and minimal operations.

AEHI’s fundraising allegedly was facilitated by a scheme to drive up the company’s stock price, both through frequent press releases - at least 87 issued in 2010 alone - and efforts of paid stock promoters to manipulate the stock price.  The SEC alleges the company has made multiple misrepresentations, including claims that its executives had such confidence in AEHI that they had not sold a single share of company stock.  In reality, Gillispie and Ransom have secretly unloaded extensive stock holdings and funneled the money back to Gillispie.  AEHI further reported to the SEC and investors that Gillispie’s annual compensation was $133,000, although he's alleged to have reaped approximately 6 times that amount.

The SEC also named, as relief defendants, 2 companies controlled by Gillispie and Ransom - Executive Energy Consulting LLC, Bosco Financial LLC.   [SEC Release 10-249, 12/16]