Fuel Cell Fraud: Trio Bilked Investors of $5 Million

NEW YORK, NY – George Doumanis, Emanuel Pantelakis, a/k/a “Manny,” and Danny Pratte are facing serious federal charges after allegedly orchestrating a brazen $5 million investor fraud scheme centered around the sham fuel cell company, Terminus Energy, Inc. The trio stands accused of systematically deceiving investors, lining their own pockets with funds meant for a technology that, according to authorities, never existed.

The indictment, unsealed today in Manhattan federal court, details a scheme that spanned from at least February 2008 through 2014. U.S. Attorney Preet Bharara minced no words, stating the defendants didn’t fuel innovation, but rather “fueled their own greed-inspired scheme to bilk investors and use the money to pay credit card bills, for a Mercedes Benz, and a horse trainer.” Doumanis and Pantelakis were already banned from the securities industry – a fact that apparently did little to deter their alleged criminal behavior.

According to the indictment, Terminus, under the leadership of CEO Danny Pratte, falsely claimed to be developing a commercially viable fuel cell. Investigators say the company never had a working prototype, never came close to manufacturing one, and never sold a single unit. Despite this, the defendants allegedly induced investors to purchase shares through a barrage of false and misleading representations. FBI Assistant Director-in-Charge William F. Sweeney Jr. emphasized that nearly three-quarters of the investor money was “swindled for the collective benefit of those involved.”

The backgrounds of Doumanis and Pantelakis paint a picture of repeat offenders. In 2003, George Doumanis was convicted of conspiring to commit securities fraud, wire fraud, and mail fraud in Florida. He was subsequently permanently barred from the securities industry by both the SEC and FINRA. Emanuel Pantelakis also faced a lifetime ban from FINRA in 2008 following allegations of fraudulently misrepresenting and omitting material facts in securities sales. These prior disciplinary actions didn’t stop them from allegedly engaging in this latest scheme.

The scheme involved misrepresenting commission rates to broker-dealers selling Terminus stock, further inflating the illusion of a legitimate investment. Doumanis and Pantelakis are expected to be arraigned before United States Magistrate Judge Gabriel W. Gorenstein. Pratte is expected to surrender to the FBI in Denver, Colorado. An initial conference is scheduled for March 6, 2017, before United States District Judge Andrew L. Carter Jr. at 1:00 pm.

This case serves as a stark reminder of the vulnerability of investors and the lengths to which unscrupulous individuals will go to enrich themselves. The Grimy Times will continue to follow this case as it unfolds, exposing the rot at the heart of Wall Street and beyond. Investors deserve truth and accountability, and those who prey on them will face the full force of the law.