September 22, 2017

SolarCity Corporation agreed to pay $29.5 million to resolve allegations it violated the False Claims Act by submitting inflated claims on behalf of itself and affiliated investment funds to the U.S. Department of the Treasury under Section 1603 of the American Recovery and Reinvestment Act of 2009 (Section 1603).  As part of the settlement, SolarCity and its affiliates will also release all pending and future claims against the United States for additional Section 1603 payments.  SolarCity was purchased by Tesla Motors Inc. in November of 2016 after the alleged conduct at issue in this case.  According to the government, SolarCity submitted thousands of Section 1603 claims on behalf of itself and affiliated investment funds in which it overstated the cost bases of its solar energy properties to obtain inflated grant payments from the Treasury. DOJ

Tagged in: FCA Federal, Financial and Investment Fraud,