Robert Irey, 59, of Clarksville, PA 15322, has admitted to defrauding 22 investors of $2,017,228.44 through a sham waste-to-energy conversion plant scheme, federal prosecutors announced today. Irey pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in U.S. District Court in Pittsburgh.
The charges stem from Irey’s role in operating Alternative Energy Holdings, LLC (“AEH”), a company he co-owned and ran with unnamed coconspirators. The defendants pitched a futuristic plant that would turn biodegradable waste into energy — a promise that never materialized. Instead, they used the lure of high-interest returns and partial ownership stakes to solicit short-term loans from unsuspecting victims.
Investors were told their money would cover business expenses tied to the plant’s development. In reality, Irey and his associates split the funds three ways and siphoned them for personal use. Despite promises of quick repayment, not a single victim was repaid. The fraud ran from June 2016 to April 2018, during which time the scheme collected over two million dollars.
United States District Judge Robert J. Colville accepted the guilty plea and scheduled sentencing for March 24, 2021. Irey now faces up to 20 years in prison and a fine of $250,000, or both. The actual sentence will be determined under federal sentencing guidelines, weighing the severity of the crime and Irey’s criminal history.
Acting United States Attorney Stephen R. Kaufman confirmed the charges, emphasizing that investors were deliberately misled with false promises and fabricated progress reports. Assistant United States Attorney Lee J. Karl is leading the prosecution, calling the scam a calculated theft masked as innovation.
The investigation was jointly conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Authorities say the case underscores the dangers of investment fraud wrapped in the veneer of green technology — a con that preys on hope, trust, and the promise of a cleaner future.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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