Three people are facing federal charges in an investment fraud scheme - two from Pennsylvania and one from Ohio.
Former Pittsburgh resident 62-year-old Jonathan Freeze, 59-year-old Clarksville, PA resident Robert Irey and 59-year-old Kevin Carney of Euclid, Ohio were indicted by a federal grand jury in Pittsburgh.
The indictment on charges of wire fraud and conspiracy to commit mail fraud and wire fraud was returned on May 25, but just unsealed on Wednesday (June 2).
The three men allegedly offered victims a chance to give their company, Alternative Energy Holdings, LLC a short-term loan at a high rate of return.
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The victims were told the company was building a plant that would be able to turn waste into energy and that the money would be used toward expenses associated with building the plant.
According to U.S. Attorney Stephen Kaufman, the men are accused of using the money for their own personal use.
Kaufman says the three collected a total of $2,017,228 from 22 victims and only repaid $63,000. The repayments to some victims were allegedly made with money from other victims' loan money.
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If convicted, Freeze, Irey and Carney could face 20 years in prison, a $250,000 fine or both - for each count of the indictment. There are six counts total.