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Thursday, June 25, 2009

Owner Of San Jose Company Arrested In Solar-Energy Scam
There Goes The Sun
Story from Mercury News

The owner of a San Jose solar company that advertised a "free solar program" but allegedly delivered nothing to many homeowners was arrested Tuesday on suspicion of theft and fraud.

Peter Be, 38, of Sunnyvale, is being held without bail at Santa Clara County Jail. He is chief executive and owner of Beohana Solar.

Investigators from the Contractors State License Board found about 30 victims who together had paid $120,000 to $130,000 in deposits for residential solar systems. One victim lost more than $100,000. Many systems were never installed, said Ken Rosenblatt, Santa Clara County supervising deputy district attorney. In addition, Be falsely claimed to be a licensed contractor, Rosenblatt said.

In marketing solar panels over a San Jose ISP, the company claimed, "You lease the solar system from us for 12 years at rates equal to or less than what you are paying your utility company now. At the end of the term, the solar system is yours to keep for FREE."

However, Rosenblatt said, after paying deposits to lease the systems, homeowners were given a written contract that stated that at the end of 12 years they had to pay the "fair market value" of the equipment.

The Contractors State License Board has issued a warning about scams perpetuated by so-called green contractors advertising environmentally friendly services. Consumers may check the status of contractors' licenses by calling an automated telephone number at 1-800-321-CSLB or by viewing the board's Web site, www.cslb.ca.gov, which also carries tips on hiring contractors.

If convicted on all charges, Be faces a maximum of 18 years in state prison.

Those with information on Beohana Solar may contact the District Attorney's Office at 408-792-2572.