Kevin Carney, 63, of Euclid, Ohio, was sentenced to more than two years in federal prison for his role in a scheme that defrauded investors of approximately $2 million, the U.S. Attorney’s Office for the Western District of Pennsylvania confirmed today.
According to court documents, Carney, along with co-conspirators Robert Irey (deceased) and Jonathan Freeze, operated a company called Alternative Energy Holdings, LLC. The trio falsely promised victims that they were developing a facility to convert biodegradable waste into green energy.
The conspirators solicited investments by offering high-interest short-term loans and, in some cases, offering ownership stakes in the company. They assured investors that their funds would be used for construction costs and business expenses related to the plant. However, instead of using the funds for the promised purposes, Carney and his partners misappropriated the money for personal luxuries, including gambling, high-end clothing, and expensive dining.
Despite promising investors quick repayment, the co-conspirators failed to return any of the money, defrauding over 20 victims between June 2016 and April 2018.
Carney was sentenced for his role in the conspiracy to commit mail and wire fraud. Both Irey and Freeze also pleaded guilty to similar charges, with Freeze scheduled for sentencing in May 2025.
