Former Pittsburgh Resident Pleads Guilty to Defrauding Investors in $2 Million Green Energy Scheme

PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court on September 3, 2024, to a charge of conspiring to commit mail and wire fraud, United States Attorney Eric G. Olshan announced today.

Jonathan Freeze, 65, pleaded guilty to one count before United States District Judge Robert J. Colville.

In connection with the guilty plea, the Court was advised that Freeze and his co-conspirators, Robert Irey (deceased) and Kevin Carney, 62, of Euclid, Ohio, owned and ran a company called Alternative Energy Holdings, LLC (AEH). The defendants informed victims that AEH was going to build a plant that would convert biodegradable waste into green energy and offered victims an opportunity to invest in AEH. Specifically, Freeze and his co-conspirators solicited short-term loans that offered high interest rates and, in some cases, an ownership interest in AEH. Additionally, Freeze informed several victims that he personally guaranteed repayment of their loans, despite having insufficient funds to cover any of the guarantees. From approximately June 2016 until April 2018, approximately 22 victims loaned AEH $2,017,228.44. Freeze and his co-conspirators further told victims that their funds would be used for costs associated with building the plant and other business expenses. Instead, the defendants often split the victims' funds three ways and used it for their personal benefit, including for gambling, high-end clothing, and restaurants. Despite the promise of a short-term repayment and personal guarantees, the co-conspirators did not repay the victims.

Judge Colville scheduled sentencing for January 22, 2025. The law provides for a total sentence of up to 20 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Both Irey and Carney pleaded guilty to the same charge, with Carney's sentencing scheduled for December 5, 2024.

Assistant United States Attorneys Lee J. Karl and Heidi M. Grogan are prosecuting this case on behalf of the government.

The United States Postal Inspection Service and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Freeze and his co-defendants.