CHICAGO, Ill. — Investors in a fraudulent clean energy scheme may be closer to recovering their money after J.D. Frost, a partner of a Chicago-area businessman, pleaded guilty to federal charges in Tennessee.
Frost admitted to wire fraud and money laundering for conspiring with his business partner, Paul Croft, to solicit investments for a purported hydrogen plant. According to prosecutors, the pair used social media campaigns and a podcast to attract investors, but the project never materialized, and funds were diverted for personal use.
An attorney representing the investors said the hydrogen plant “never was anything,” noting that only about $200,000 was spent on architects. The scheme reportedly obtained $54 million from investors, with roughly $46 million spent on luxury vehicles, and involved filing thousands of false tax returns to avoid paying more than $8 million in taxes.
As part of his plea agreement, Frost will pay $70 million in restitution to the federal government, which could help compensate the defrauded investors. Frost has also agreed to cooperate in the investigation of Croft. Investors have filed a class-action lawsuit against Frost and Croft in Cook County Circuit Court.
