Oh my. FBI raids bankrupt Obama-favorite Solyndra

Posted by: Phineas on September 8, 2011 at 3:24 pm

**Posted by Phineas

That’s the California solar-power manufacturer that somehow managed to secure a $535 million, federally-guaranteed (1) loan through the Department of Energy at a sweetheart interest rate, even though their financial condition and business plan never warranted it. But, and I’m sure it’s a coincidence, the major shareholder is a top Obama donor and donations bundler.

And now they’re bankrupt, the investor gets reimbursed with taxpayer money, and the FBI is kicking-in the door:

Just days after the company filed for bankruptcy protection, federal agents swarmed around the Solyndra facilities in Fremont to execute a search warrant.

FBI agents were joined by officials from the Department of Energy’s Office of the Inspector General in the early morning operation.

Officials would say little about the search, which seemed to center on the Solyndra buildings on Page Avenue off Interstate 880.

“Everything is under seal,” said Julianne Sohn, a spokeswoman for the FBI.

Agents began executing their search about 7:30 a.m., Sohn said. More agents arrived in SUVs at 8:40 a.m.

The action by federal agents comes a week after the solar manufacturer abruptly closed, laying off about 1,000 workers, and two days after the company filed for bankruptcy protection.

Solyndra spokesman Dave Miller said the search came as a surprise, but he emphasized the company is “fully cooperating” with federal officials. He said he did not know the purpose of the search, but he speculated it could have something to do with the $535 million in loan guarantees the Department of Energy awarded to Solyndra.

Gee, ya think??

Read the report from ABC yesterday on the loan guarantees and unusually low interest rates for background, but here’s an excerpt that I’m sure you’ll find entertaining:

Solyndra’s most prolific financial backer is George Kaiser, an Oklahoma oil billionaire who was a bundler of campaign donations for Obama’s 2008 race. Kaiser’s Argonaut Ventures and its affiliates have been the single largest shareholder of Solyndra, according to SEC filings and other records. The company holds 39 percent of Solyndra’s parent company, bankruptcy records filed Tuesday show.

Under terms of the bankruptcy filing, investors including Argonaut — which led a $75 million round of financing for Solyndra earlier this year — will stand in line before the federal government and other creditors.

You know, I do believe I hear the House Energy Committee warming up in the wings.

Kaiser, not surprisingly, was a frequent White House visitor.

Without a doubt, this deal stinks to the heavens. Not only is it a perfect illustration of why “green jobs” –or any uneconomic, government-subsidized industry– is a doomed-from-the-start waste of public money, but it also reeks of political favoritism, backroom deals, and downright corruption.

What was it Sarah Palin said the other day? Oh, yeah

They use [public money] to bail out their friends on Wall Street and their corporate cronies, and to reward campaign contributors, and to buy votes via earmarks. There is so much waste. And there is a name for this: It’s called corporate crony capitalism. This is not the capitalism of free men and free markets, of innovation and hard work and ethics, of sacrifice and of risk. No, this is the capitalism of connections and government bailouts and handouts, of waste and influence peddling and corporate welfare. This is the crony capitalism that destroyed Europe’s economies. It’s the collusion of big government and big business and big finance to the detriment of all the rest – to the little guys. It’s a slap in the face to our small business owners – the true entrepreneurs, the job creators accounting for 70% of the jobs in America, it’s you who own these small businesses, you’re the economic engine, but you don’t grease the wheels of government power.

And I’ll bet you my last dollar that Solyndra is a $535,000,000 example of just what she was denouncing.

Between this and Gunwalker, Obama is going to have an… “interesting” 2012.

via Zombie

RELATED: Also check out Power Line and Hot Air.

UPDATE: At Power Line, historian Steven Hayward raises an interesting possibility — What if the raid is an attempt by Holder to cover-up what happened at Solyndra and block any congressional inquiry by hiding behind the privilege of a claim of an “ongoing investigation?”

Footnote:
(1) As in, guaranteed with our money.

(Crossposted at Public Secrets)

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10 Responses to “Oh my. FBI raids bankrupt Obama-favorite Solyndra”

Comments

  1. Greg says:

    It looks like Palin was right…again. The LEFT must be going crazy. They despised Bush and Cheney for their alleged corporate cronyism and now their dear leader is up to his neck in it. Whatever happened to the ‘change’ in how Washington does business Obama was supposed to bring? Wasn’t Obama supposed to bring an end to ‘politics as usual’? The more things ‘change’ the more they stay the same.

  2. H Hazell says:

    The hearing that follows might go something like this:

    Chairman of oversight committee: Mr Holder, are you aware of any copies made of documents at the Solyndra facility as part of the FBI raid?

    AT Holder: Yes Mr Chairman. We had 10 agents assigned to copy any and all documents at the Solyndra facility that day, under the direct supervision of one of my deputies and using copiers provided by my office.

    Chairman: Can you make those copies available to this committee?

    AT Holder: I would very much like to do that, but it seems that what the 10 agents thought were copying machines were in fact shredders and none the documents remain.

  3. Joe says:

    I just wouldn’t be surprised if this is a response by the Obama administration due to frantic calls from billionaire Kaiser and the scurrying rats. Congress will no doubt find out files missing ect.

  4. TexasDoc says:

    No doubt a preemption by the White House to look like they are doing something in yet another scandal.

    The Operation Fast & Furious failure really needs to be examined fully, particularly all of the lies told by Holder and Obama to cover their political appointees. Pardon my language, but it needs to be b*lls to the wall for the administration on both situations.

  5. ksmith says:

    They were probably looking for the checks that had yet to be mailed to the WH.
    I wonder if BO had his name or Michelle’s on the W4 forms.

  6. Hopefulone says:

    Yup. FBI shredder team.

    No connection to the Obama admin or campaigns. Right?

  7. Amy Shulkusky says:

    535? Now why does that number sound familiar…

  8. Carlos says:

    Ya know, maybe the “dumb act” by the people from the guvmint sitting in on Solyndra’s board meeting really wasn’t an act – maybe they really are that dumb!

  9. Steph says:

    What is a shame is that the employees of this company (the folks doing the actual work not the board or CEO, etc.) are victims of this chicanery. What do you want to bet that the money ended up in the hands of a very few at the top? New homes, yachts, summer homes, etc. The employees were just stunned by this and it was a complete surprise to most of them. If you want to see their reactions, go to ktvu.com and click on this story where the ones let go speak to the reporters.

  10. George Robinson says:

    While I do like being associated with everyone on this site agreeing in principle I have noticed their seem to be a plethora of events where there is really no way to mount a defense. Not only do we have a nest of vipers with whom we must deal,we seem to have very few authorities on our side willing to take on the fight.