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McAuliffe tilts at windmills; Chinese venture goes bust

By   /   November 1, 2013  /   No Comments

Part 67 of 74 in the series Terry McAuliffe - Carmogul
Nasdaq photo

BEFORE THE PLUNGE: A-Power Chairman Jinxiang Lu, right, celebrated at Nasdaq when his company stock was flying higher.

By Kenric Ward | Watchdog.org Virginia Bureau

ALEXANDRIA – “Job creator” Terry McAuliffe’s dealings with Chinese business interests went beyond GreenTech Automotive – and like his sputtering electric car company, they didn’t get far.

On Aug. 2, 2010, McAuliffe, then chairman of both the auto company and a shadowy sister entity called WM GreenTech Energy Holdings, signed a joint agreement with A-Power Energy Generation Systems, a China-based firm, to develop renewable power projects.

At the time, McAuliffe, a chief Democratic Party fundraiser, vowed to invest up to $1 billion in wind energy with A-Power.

“He says he’s ‘jacked up’ on fuel cells and is scoping out new technologies worldwide,” Bloomberg News reported

The joint venture was to pursue “new energy projects covering wind, solar and biomass power generation in the global market.”

Also involved were other Democratic Party fundraisers and lobbyists who pushed for $450 million in federal stimulus money for an A-Power wind farm in Texas.

McAuliffe, a veteran D.C. insider running for Virginia governor as a “job creator,” did not deliver for A-Power.

Less than two years after McAuliffe and A-Power Chairman Jinxiang Lu signed their “cooperative development agreement,” A-Power investors sued the company, alleging securities fraud and demanding their money back.

The Texas wind farm was never built. The federal funds were not forthcoming. McAuliffe was out of the picture.  And GreenTech Energy is classified as “delinquent” by the Virginia Corporation Commission.

A-Power paid a $3.6 million settlement to investors, and the company’s stock was valued at 6-cents a share on April 23. The Securities and Exchange Commission has since banned A-Power from the U.S. securities market.

Another Chinese partner

In attendance with Lu and McAuliffe at the 2010 signing ceremony were Lu Songhui, executive vice president of Shengyang Power Group, and Shao Jinglan, a top executive at Shengyang ZhongRui Investment Co.

Shengyang ZhongRui is a partner with GreenTech Automotive in building a car plant in Ordos, Inner Mongolia. McAuliffe touted the project last year, before construction was halted when Chinese officials cut off government funding.

Neither Shengyang nor McAuliffe were cited in the A-Power investors’ lawsuit, which charged that the company “grossly misstated its revenue, income, total assets and total liabilities.”

AP photo

RUNNING: Terry McAuliffe, running for Virginia governor, left A-Power in his wake, and his GreenTech Energy Holdings hasn’t paid its annual fee to the state corporation commission.

McAuliffe has not commented on the nature of GreenTech Energy’s agreement with A-Power, or whether he made good on his $1-billion pledge to the A-Power venture.

A Sept. 8, 2010, press release on “Terry’s Newsroom” site described GreenTech Energy, a sister company of GreenTech Automotive, as “the energy development arm of GreenTech Industries.”

The release, which said “GTE’s primarily energy generation (sic) focuses on wind, solar and bio-mass power,” stated:

“Based on the mutuality that both A-Power and GTE are seeking for one or more worldwide investment opportunities in the field of renewable energy power generation, the two parties has (sic) reached a cooperative development agreement on establishing a joint venture to undertake new energy projects covering wind, solar and biomass power generation in the global markets.”

Virginia records show that McAuliffe’s GTE Holdings, which shares office space with GreenTech Automotive in McLean, Va., has not paid its 2013 state fees to the Virginia Corporation Commission.

VCC spokesman Ken Schrad confirmed that GTE Holdings — incorporated in August 2010, the same month it signed the A-Power agreement — is delinquent on its annual $220 fee that was due on Aug. 31. He said the company must pay the fee, plus late-payment penalties, by the end of the year to avoid an “automatic revocation” of incorporation.

GreenTech investigation

A third related entity listed at the McLean address, Gulf Coast Funds Management, is under investigation by the SEC. The funding arm of GreenTech Automotive, Gulf Coast raises money from Chinese nationals through the federal EB-5 visa-investor program.

Gulf Coast, headed by Hillary Clinton’s brother, Anthony Rodham, has collected millions of dollars. GreenTech, however, has fallen short of its job-creation and car-production projections. More than a year after former President Bill Clinton joined McAuliffe for GTA’s unveiling in Mississippi, the company has yet to build its promised assembly plant there.

Ken Cuccinelli, McAuliffe’s GOP opponent, recently said GreenTech has “sold more visas to foreign investors than it has built cars.”

McAuliffe boasted that he brought the auto company from China to America in 2009 to create U.S. jobs. The firm says it has about 80 employees. No production figures have been confirmed.

GTA President Charles Wang, who also serves in that capacity at GTE Holdings,  announced last April that McAuliffe stepped down as GTA chairman in December to wage a second campaign for governor.

McAuliffe holds the title “chairman emeritus” at GTA and is listed as chairman of GTE Holdings in that entity’s annual filing with the state of Virginia.

McAuliffe’s campaign did not respond to Watchdog’s questions about GreenTech Energy and A-Power.

GreenTech Automotive sued Watchdog in April for $85 million, alleging that its reporting defamed the company and damaged investor relations.

Kenric Ward is chief of Watchdog.org’s Virginia Bureau. Contact him at kenric@watchdogvirginia.org or at (571) 319-9824. @Kenricward

Earl Glynn contributed research to this article.

 

 

Part of 74 in the series Terry McAuliffe - Carmogul
  1. VA: As he runs for governor, McAuliffe wheels and deals electric cars in Mississippi
  2. VA: Media echo Watchdog exclusive on McAuliffe’s electric car maneuvers
  3. No news here: PolitFact brands Terry McAuliffe’s electric-car claim ‘false’
  4. Experts question source of McAuliffe car-company funding
  5. Terry McAuliffe on business ventures: ‘Some work, some don’t’
  6. How McAuliffe’s car company failed the Virginia test, landed in Mississippi
  7. Virginia official wants probe of McAuliffe company ‘visa-for-sale’ program
  8. McAuliffe car company sues Watchdog in libel claim
  9. Barack Obama’s GreenTech connection: Rick Wade
  10. Silence, secrecy, cops follow GreenTech’s China deal
  11. McAuliffe hones China’s crony-capitalism model in U.S.
  12. Promises keep Tunica County afloat
  13. McAuliffe company’s China hook-up: Will it work?
  14. McAuliffe car lags in Domino’s delivery
  15. McAuliffe car co. parent in off-shore tax shelter
  16. Lawmaker gives feds one more week for EB-5 answers
  17. Bolling: McAuliffe’s Mississippi package ‘attractive’
  18. Inside, execs knew McAuliffe plan had ‘substantial risk’
  19. Union darling McAuliffe and his non-union car company
  20. Did Clinton aid the birth of ‘McAuliffe’ car company?
  21. McAuliffe feels heat over GreenTech resignation
  22. TV report: One year later, ‘party is over’ at GreenTech
  23. Months after he said he left company, McAuliffe kept talking GreenTech
  24. Clinton connection: More money for McAuliffe
  25. Terry McAuliffe used loophole to avoid key SEC oversight of his car company
  26. VA officials: McAuliffe green car more politics than biz
  27. McAuliffe car company announces it’s ready to roll — again
  28. Before Watchdog, McAuliffe blamed federal officials for money trouble
  29. McAuliffe gets cash from GreenTech exec, board members
  30. Watchdog report on McAuliffe spurs FOI request to Homeland Security
  31. McAuliffe leaves GreenTech questions hanging at debate
  32. Totally wired: McAuliffe went to Napolitano to expedite company funding
  33. McAuliffe bragged about GreenTech’s cash position while begging feds for faster processing of ‘cash for visas’
  34. Investigation targets Homeland official’s relationship to McAuliffe company
  35. Even before news of federal probe, McAuliffe ducked GreenTech questions
  36. McAuliffe company pressed Homeland official on 81 investor visas
  37. Rodham company sought visa for controversial Chinese exec
  38. Immigration official says he met with McAuliffe to discuss visas for foreign investors
  39. Whiners: Mayorkas says Gulf Coast ‘continues to complain’
  40. VIDEO: Ex-GreenTech employee says little happened at Horn Lake plant
  41. Online ad to Terry McAuliffe: Drop your lawsuit
  42. National security on ‘hold’: Lawmakers press McAuliffe for answers
  43. Citizens United documentary film delves into McAuliffe, GreenTech
  44. VIDEO: Terry McAuliffe’s 15 million-square-foot car plant … in China
  45. Feds call McAuliffe car company’s use of investment program ‘possible fraud’
  46. GreenTech courted Obama’s Solyndra aide
  47. GOP legislators call for McAuliffe to answer GreenTech questions
  48. McAuliffe ‘desperate’ over documentary, Citizens United says
  49. GreenTech weighed Fisker-style federal loan
  50. Group tells Terry: Follow ‘McAuliffe Standard’ on disclosure
  51. Car and Driver races into GreenTech controversy
  52. Congressman: McAuliffe owes Virginians explanation about White House meeting
  53. Feds loosen oversight as McAuliffe car company makes mysterious management change
  54. GreenTech execs use Times and ABC to throw McAuliffe under the (non-electric) bus
  55. Aide in union contribution swap hosts California fund-raiser for McAuliffe
  56. Despite denials, docs show McAuliffe company asked feds to fast-track visa for investor tied to spy list
  57. Former Democrat Party director was on GreenTech payroll
  58. More bad news for McAuliffe car company as GreenTech China venture stalls
  59. Clinton Foundation posts deficits on McAuliffe’s watch
  60. VIDEO: GreenTech record dogs McAuliffe at energy forum
  61. Auto industry expert labels McAuliffe electric car ‘preposterous’
  62. Democratic leaders have their own Bain pain in Mideast private equity deal
  63. Hillary PAC adviser served as GreenTech spokeswoman
  64. New emails add evidence McAuliffe pressed U.S. officials to approve GreenTech funding
  65. After endorsement, Post shrinks facts to cover Terry McAuliffe
  66. Ties that bind: Following the McAuliffe-Clinton money trail
  67. McAuliffe tilts at windmills; Chinese venture goes bust
  68. Federal investigations cast shadow over McAuliffe on Election Day
  69. DHS inspector over GreenTech-McAuliffe case is under investigation
  70. McAuliffe names former GreenTech employee secretary of commonwealth
  71. McAuliffe lawyers, accountants sort GreenTech stock amid federal investigations
  72. Nuking filibusters, Dems clear way for Mayorkas at Homeland Security
  73. U.S. judge hands Watchdog a victory over VA governor’s green-car company
  74. Attorney: McAuliffe is ‘100 percent divested’ of GreenTech

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Kenric Ward is a veteran journalist who has worked on three Pulitzer Prize-winning newspapers. A California native, he received a BA from UCLA (Political Science/Phi Beta Kappa) and holds an MBA. He reported and edited at the San Jose Mercury News and the Las Vegas Sun before joining Watchdog.org in 2012 as Virginia Bureau Chief.

Watchdog.org Virginia Bureau, is in no way affiliated with "The Virginia Watchdog". Any similarities between Watchdog.org Virginia Bureau and "The Virginia Watchdog" is completely coincidental and unintentional. Any inquiries into "The Virginia Watchdog" may be done through their site.