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USA: Stimulus recipient under investigation for insider trading

A company awarded $126.2 million in stimulus taxpayer funds from the U. S. Department of Energy is under investigation for insider trading according to a federal subpoena obtained by CBS News.

The company, San Francisco-based Ecotality, makes and installs chargers for electric cars.

The company received a subpoena from the Securities and Exchange Commission in October of 2010.

The president of Ecotality North America Don Karner was sent an additional subpoena in December of 2011, which specifically asks for any and all documentation surrounding the public announcement of the first Department of Energy grant to the company for $99.8 million on August 5, 2009.

The government also wants all communication regarding the federal grant from at least four Ecotality employees and two board members including the company’s CEO Jonathan Read. Karner was required to supply documents to the SEC by early January.

A company spokesperson told CBS News in an email, “We are cooperating fully with the SEC and have no further disclosures or updates that we are able to provide outside of our public filings.”

Ecotality was awarded $99 million in 2009 and an additional $26 million in October 2011. Since the beginning of the grant period in October 2009 the company reported creating 144 jobs according to Recovery.gov .
More cbsnews.com

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