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Feds Want AEHI's Assets Frozen ..Again

Prosecutors: AEHI 'is concealing the money from shareholders, the public and the SEC'

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UPDATE: November 16, 2012

Alternative Energy Holdings CEO Don Gillispie resigned from the company, effective immediately on November 16, citing what he said were "ongoing health concerns." Gillispie said he would assist the company part-time as a consultant.

The AEHI Board of Directors voted unanimously to appoint Pete Honeysett, AEHI director of nuclear projects, as interim president.

ORIGINAL STORY

Reporting on the shenanigans surrounding wannabe nuclear developer Alternate Energy Holdings, Inc. is usually a tale of two viewpoints.

Talk to officials with AEHI, and they tell you that they're moving forward with their plans to build a nuclear-power plant in Payette County by beginning what they call "an extensive environmental study" in preparation of their application to the U.S. Nuclear Regulatory Commission. Payette County commissioners agreed in February, overriding their own Planning and Zoning Commission to green light AEHI's plans.

But federal prosecutors have an entirely different view of AEHI, asking a federal judge to freeze AEHI's assets for the second time in less than two years, saying AEHI CEO Don Gillispie's "get rich quick" schemes were continuing.

In December 2010 the Securities and Exchange Commission alleged that Gillispie was "pumping and dumping," manipulating AEHI stock through false statements and allowing key management to sell shares at inflated prices. U.S. Judge Edward Lodge froze the assets but lifted the order in February 2011, warning Gillispie to provide detailed monthly documentation of AEHI expenditures.

But now, SEC investigators allege that Gillispie was sliding money around--as much as $2 million--"concealing the money from shareholders, the public, and the [SEC]."

AEHI spokesman Dan Hamilton told the Associated Press' John Miller that the SEC was trying to put the company out of business.

"There's no doubt, this court action has taken its toll on the company," Hamilton said.

Since July, share values of Alternate Energy Holding stock have hovered near 2 cents per share, a dramatic difference from when AEHI traded near 60 cents per share in December 2010, before the first SEC complaint against the company.

But AEHI is, if anything, persistent, announcing in October that it was now exploring the use of small modular reactors for its proposed nuclear power plant in Payette.

"This would not necessarily replace our plans to build a large-scale reactor on the proposed site," said the company in an announcement to its investors. "But there may be an opportunity to build one or more years in advance of the larger reactor."

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