Greentech received $4.9 Million in loans from Mississippi to build a factory in Tunica County but failed to invest the amount required in the contract with the state before filing for bankruptcy.
A federal judge has dismissed former Virginia Gov. Terry McAuliffe from a lawsuit alleging he defrauded investors in a failed electric-car company.
Thirty-two Chinese investors sued McAuliffe and Greentech Automotive Inc. last year. They say they were duped into investing $500,000 each into what they thought was a viable company.
Greentech received millions of dollars in subsidies to build a plant in Mississippi but filed for bankruptcy earlier this year after never getting off the ground.
Months earlier, Mississippi State Auditor Stacey Pickering had concluded Greentech, which claimed it had raised $140 million for its factory in Tunica County, couldn’t prove it invested even the $60 million required in its state incentive contract. He sent a demand letter to the company for repayment of the $4.9 million Mississippi loaned Greentech, plus $1.5 million in interest.
The audit from Pickering’s office, released in July, stated that the company provided written documents that it had raised $43 million from 86 investors who each put in $500,000 through a federal program that allows people to obtain U.S. residency by investing that amount and creating 10 jobs.
State Government Officials “Reckless” Attitude Over Economic Development Insulting To Mississippi Taxpayers.