Abrams Gets 72 Months for Ripping Off $1.1M in Clean Energy Scam

The DOJ USAO announced that United States District Judge Malachy E. Mannion sentenced James Abrams, age 41, of Easley, South Carolina, to 72 months of imprisonment and three years of supervised release following his term of imprisonment. Abrams was convicted following a nine-day jury trial of all 48 counts in an indictment charging wire and mail fraud, aggravated identity theft, money laundering, unlawful monetary transactions, obstruction of justice, and false statement offenses.

Abrams was the Chief Executive Officer of EthosGen LLC, a company operating in the clean energy industry. The evidence at trial showed that in 2017 and 2018, Abrams provided extensive forged documents and false information to induce several investors to invest $1,100,000 in his company. The false documentation included forged teaming agreements and intellectual property licenses, where Abrams substituted his and EthosGen LLC’s name for other companies and individuals, claiming that EthosGen LLC owned technology it did not own.

As a result of those activities, the jury convicted Abrams of 18 counts of wire fraud, and one count of mail fraud. The jury also convicted Abrams of five counts of aggravated identity theft based on his forging multiple individuals’ signatures and using their personal information on falsified documentation, without their authorization. Abrams used approximately $800,000 of the investors’ money to purchase a personal residence in Easley, South Carolina.

To conceal his financial activities, Abrams transferred $700,000 of the funds through a series of five bank accounts under his control, and opened in the names of shell companies, before purchasing the residence. He then lied to investors and to his own financial professionals, claiming that he used the funds to purchase company inventory for EthosGen LLC. Abrams provided investors with falsified company reports, certifications, and accounting records to corroborate his misrepresentations about the use of the investment funds.

The evidence at trial further showed that, upon becoming aware of the Internal Revenue Service’s criminal investigation, Abrams took several steps to obstruct investigators. He used misrepresentations and forged bank statements to induce EthosGen LLC financial professionals to create false documents and accounting records that purported to classify his embezzlement of investor funds as a shareholder loan. Abrams also met with investigators on two occasions and provided materially false statements in response to their questions.

According to United States Attorney Gerard M. Karam, Abrams’s actions were a betrayal of trust and a devastating blow to the investors who put their faith in him. “Abrams’s crimes demonstrate a callous disregard for the law and a blatant disregard for the financial security of his investors,” Karam said. “We are committed to holding individuals accountable for their actions and to ensuring that justice is served.”