Canadian businessman accused of defrauding NC investors
Posted October 24, 2013
Raleigh, N.C. — A Canadian man accused of defrauding investors in North Carolina has been indicted by a federal grand jury, the U.S. Attorney’s Office said Thursday.
James Alan Rowan is charged with securities fraud and wire fraud in connection with his business, Enviro-Energies. According to the indictment, Rowan claimed to have developed and patented a new wind turbine that could generate clean electricity without the need for a tower to mount the turbine.
He marketed his “mag wind turbine” through the Internet and in person, and received endorsements from celebrities and environmental activists. Authorities said Rowan made numerous false claims, exaggerated the turbine’s power and falsified scientific and technical information. He allegedly invited investors from North Carolina, California and elsewhere to buy shares, saying the shares would be listed on stock exchanges through an initial public offering, or IPO.
Authorities said the investors paid for their stock shares, but Rowan never delivered the certificates.
U.S. Attorney Thomas G. Walker said Rowan faces a maximum 20 years in prison for each count if he is convicted.