Green Firms Get Fed Cash, Give Execs Bonuses, then Fail

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    Mar 06, 2012 9:10 PM GMT
    http://abcnews.go.com/Blotter/green-firms-fed-cash-give-execs-bonuses-fail/story?id=15851653#.T1Z8rc3OVv4

    President Obama's Department of Energy helped finance several green energy companies that later fell into bankruptcy -- but not before the firms doled out six-figure bonuses and payouts to top executives, a Center for Public Integrity and ABC News investigation found.

    Take, for instance, Beacon Power Corp., the second recipient of an Energy Department loan guarantee in 2009. In March 2010, the Massachusetts energy storage company paid cash bonuses of $259,285 to three executives in part due to progress made on the $43 million energy loan, Securities and Exchange Commission records show. Last October, Beacon Power filed for Chapter 11 bankruptcy.

    EnerDel, maker of lithium-ion battery systems, landed a $118.5 million energy grant in August 2009. About one-and-a-half years later, Vice President Joe Biden toured a company plant in Indiana and heralded its taxpayer-supported expansion as one of the "100 Recovery Act Projects That Are Changing America."

    Two months after Biden's visit, EnerDel corporate parent Ener1 paid $725,000 in bonuses to three executives -- including $450,000 to then-CEO Charles Gassenheimer, who led Biden on the tour. This January, Ener1 filed for Chapter 11 bankruptcy protection.
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    Mar 06, 2012 9:24 PM GMT
    Gee.. the only thing I see wrong here is greedy/criminal executives.. what a novel idea!
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    Mar 06, 2012 11:27 PM GMT
    TropicalMark saidGee.. the only thing I see wrong here is greedy/criminal executives.. what a novel idea!


    Hmmm, sounds a lot like the banking sector that the Bush administration bailed out with no strings attached.