Wind turbine startup CEO must give up ill-gotten gains in alleged investment scam

The CEO of a wind turbine startup that he claimed could generate power at a fraction of the cost of any existing technology must repay “ill-gotten gains” and stop selling unregistered stocks under terms of a permanent injunction obtained by the Securities and Exchange Commission.

Richard Hinds, CEO of Thunderbird Power Corp., helped oversee a scheme that bilked more than $1.9 million from 60 investors, according to a complaint filed by the SEC in July 2020.

In addition to Hinds of Queens Creek, Arizona, the SEC’s complaint named as defendants former president Anthony Goldstein and former consultant John Alexander Van Arem, both of Ontario, Canada.

They employed sales agents in Fort Lauderdale, Pompano Beach, Deerfield Beach and Vero Beach to sell investments into what they said was a “utility grade wind turbine for use on wind farms,” the complaint states.

The trio are accused of using $850,000 of the $1.9 million “to enrich themselves and to pay the sales agents to seek out more unsuspecting investors,” the SEC said in a news release last year. Hinds was accused of funneling $280,000 to accounts for two educational services companies he owns in Arizona: AZ Prep and Motivating Minds.

Sales agents claimed that the wind turbine used “Power Stack Technology” to extract more kinetic energy than any other wind turbine technology on the market and would produce electricity at a “tiny fraction” of the cost of any other method, renewable or fossil, the suit states.

The fraudulent stock sales took place “from no later than” August 2016 until at least October 2018, the SEC alleged. Investors included seven from Florida and three from South

Florida.

Hinds, who did not admit or deny the SEC’s allegations, agreed not to contest or appeal terms of a judgment of permanent injunction filed on Sept. 6 by the SEC in U.S. District Court in Miami.

Under the terms, Hinds:

„ ■Must repay “ill-gotten gains” from the scheme, with interest, and a civil penalty. The amount of money Hinds must pay has not yet been determined, according to Hinds’ attorney, Blair Jackson of Orlando-based Corey Cohen & Associates.

„ ■May not buy or sell unregistered securities across state lines using mail or by any instrument of communication or transportation.

„ ■May not use interstate communications or transportation to sell fraudulent securities.

„ ■May not make fraudulent statements about any investment strategy or security, prospects for success of any product or company, use of investor funds or proceeds, or business operations or the products or any company.

„ ■May not act as an officer or director of any company required to file periodic reports to the SEC, or that has a class of securities registered under specific sections of the Exchange Act.

„ ■May not participate in any offering, sale or trade of penny stock, which is generally an equity security priced less than $5.

Goldstein and Van Arum previously agreed not to contest similar judgments for permanent injunctions filed by the SEC at earlier stages of the case. Goldstein was ordered on Oct. 5 to pay a $50,000 civil penalty while Van Arem was ordered on March 25 to return $103,765 in profits from the activities and a $50,000 civil penalty. According to terms of the judgments, none of the defendants can discharge their debts by filing for bankruptcy.

FILE An Arizona-based startup company sought to take advantage of the growing recognition of wind turbines as a green power source raised $1.9 million by promising its technology could generate power for a“tiny fraction”of the cost to produce any other form of power, according to the Securities and Exchange Commission. All three of the company’s top executives must repay “ill-gotten gains” under permanent injunctions obtained by the SEC.