Friday, August 28 , 2015, 11:13 pm | Fair 71.0º




Michelle Malkin: Hope-a-Nomics Disaster — One Company’s Horror Story

By Michelle Malkin | @michellemalkin |

President Barack Obama promises to move the country forward with his recycled pledge of 5 million green jobs. But in the real world, small businesses are struggling to stay afloat as they deal with the fiscal wreckage of this administration’s disastrous venture socialism. Here’s the tale of just one Colorado company victimized by the Obama Energy Department.

Colorado Distribution Group is a privately held storage and shipping company based in Denver. Thanks to hope-a-nomics, its warehouse is saddled with nearly 7,000 pallets of federally subsidized solar panels (one-third of which are completely spoiled and unsalable), along with related detritus such as broken glass and stray module parts.

While $22,000/month in storage costs go unpaid, the panels consume up to a third of the company’s warehouse space. Legal costs have forced CDG to slash payroll and lay off at least three employees. A source with knowledge of CDG’s woes recently told me the company is facing pressure by the Energy Department to drop its petition to recoup those costs. The feds want CDG to swallow a $1.4 million tab to dispose of the bum solar panels.

In July, according to Dow Jones, CDG asked a Delaware bankruptcy court “for permission either to sell or collect rent on the property Abound Solar Inc. has at its facility, saying the situation is threatening its ability to stay in business.” Like many private enterprises in the Age of Obama’s Brass-Knuckled Politics of Revenge, fear of retribution holds back many from coming forward publicly about such attempted shakedowns.

CDG serves industries ranging from automotive to food and beverage, electronic, medical, furniture, clothing, sporting goods and telecommunications. Founded in 2005, CDG handles distribution, fulfillment, transportation, logistics and inventory management using a high-tech data system. For the past three years, the company warehoused solar panels manufactured by Fort Collins-based Abound Solar.

Yes, Abound Solar. Also known as: Colorado’s own Solyndra.

In June, less than a year after fellow Obama green boondoggle Solyndra went belly up, Abound filed for bankruptcy. As I reported in March, the financial outlook of the $400 million DOE loan guarantee recipient was based on false hope and imaginary change. Obama’s envirocrats ignored bright red flags from Fitch Ratings about Abound’s substandard technology and failures to meet basic efficiency targets.

Abound borrowed $70 million against its $400 million Obama DOE loan guarantee; taxpayers will lose up to $60 million on the loan after the bankruptcy proceedings are complete. Nearly 125 Abound Solar employees lost their jobs. Screwed-over companies like CDG that did business with Abound are not alone. At least one other warehouse in Colorado is storing the costly panels. And an untold number of related contractors and businesses have been stiffed.

“I did a lot of machining for Abound,” one business owner told me this summer, “and they went under owing me a fair amount.”

Recently released internal documents show that customers demanded replacements for the panels after experiencing “low performance,” “under performance” and “catastrophic failures.” Credit and technical advisers at DOE complained about having “major issues” with the Abound Solar deal and expressed concern over the “transaction pressure under which we are all now operating.” The documents fly in the face of Obama’s denial — just days before Election Day — that his White House played any role in this fiscal disaster.

The investigative work of Colorado’s Todd Shepherd at CompleteColorado.com, Amy Oliver at the Independence Institute and Michael Sandoval now of the Heritage Foundation exposed Abound’s crony ties to the Obama administration. Like Solyndra, Abound had a deep-pocketed bundler with ties to the White House. Progressive activist and billionaire heiress Pat Stryker, a repeat visitor to the Obama White House, owns an investment firm that invested considerably in Abound and donated nearly $500 million to the Democrats between 2008 and 2012.

Criminal and civil probes into Abound Solar’s alleged malfeasance — there are reports that the firm knowingly sold faulty goods — have been launched in both Colorado and on Capitol Hill. The stench of pay-for-play abounds. While Obama giddily promises his cronies and sycophants that “the best is yet to come,” small-business owners are fighting for their lives. Where’s their “fair share”?

Michelle Malkin is author of Culture of Corruption: Obama and his Team of Tax Cheats, Crooks & Cronies. Click here for more information. She can be contacted at .(JavaScript must be enabled to view this email address). Follow her on Twitter: @michellemalkin.




comments powered by Disqus

» on 11.12.12 @ 01:50 AM

Michell Malkin, go to your room.  Hopefully on a different planet….

» on 11.12.12 @ 01:49 PM

Wow what a remarkably intellectual response.

» on 11.12.12 @ 02:03 PM

Wasn’t meant to be intellectual.  Just pointing out that she’s blowing in the wind…..:-)
And a bit of schadenfreude….:-)

» on 11.12.12 @ 02:12 PM

A50, we should expect no less of an emotional response to factual reporting when it comes to supporting Obama. As I’ve said before, it is impossible to have an intelligent discussion when one side answers facts with name calling.

» on 11.13.12 @ 08:53 AM

The Obama administration has definitely screwed up in it’s support for Solyndra. No excuses for this one. It is a definite black eye to green energy startups and their government subsidies.
  If government subsidies are really the source of Malkin’s ire , why not write about the $4 billion annual giveaway to oil producers? That wont happen , and it is a safe bet that Malkin will spend the next 4 years relentlessly nipping at Obama’s heels with her nastily toned hit pieces.

» on 11.15.12 @ 11:58 AM

Hydrocarbon mining will be the forerunner to the new geothermal paradigm. Geothermal offers substantially better, more stable and longer term abundant cheap energy. The rest of the renewable family is far too expensive, less stable and far to low a density to ever compete with geo. That alone is a good reason to support the drilling subsidies.

When we stop this asinine AGW religious fervor and realize two things, all life is based on the “carbon” cycle so eliminating that from energy is factually stupid on its face and that cheap energy has done more to raise the living standard of the poor than any other commodity, then we can refocus our efforts on those paradigms that benefit the poor rather than those that benefit the rich.

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