A civil lawsuit filed on Dec. 19 alleges that the CEO of a prominent solar power company artificially inflated his accounting records in order to secure a line of credit, according to local business news. Sader Power Enterprises head Jon Sader is facing a breach of contract suit filed by fellow power agency Ameresco Solar. The story may be of interest to Florida companies invested in the lucrative but temperamental alternative energy industry which is gaining a foothold across the nation.
Sader Power Enterprises came to prominence in 2011 following a successful television advertising campaign extolling the virtues of solar power for residential homes. Since then, however, business appears to have come to a standstill for the fledgling company. Sader approached Ameresco to apply for a $2 million loan to help cover business expenses.
In applying for the loan, Sader allegedly misrepresented his company’s financial health by suggesting that several million dollars’ worth of payments were expected to come in shortly from customers. However, an audit of the company’s books revealed that much of these payments had already been determined to be uncollectable. Ameresco has filed the breach of contract suit after Sader failed to repay the debt allegedly owed.
It is perfectly normal for a company to seek a business loan, itself an agreed-upon contract guaranteeing the money will be paid back. Florida business owners know how important it is to repay debts, not just from the perspective of avoiding a breach of contract suit, but to maintain the integrity of a company’s reputation. In this case, should the court rule in Ameresco’s favor, Sader’s company may be on the hook for more than $2 million and face further scrutiny from those in the alternative energy business community.
Source: theneworleansadvocate.com, ” Nearly $2M lawsuit accuses Sader Power Enterprises CEO Jon Sader of breach of contract “, Richard Thompson, Jan. 2, 2015