Ari J. Lauer, the former outside counsel for mobile solar generator manufacturer DC Solar, was sentenced to 11 years and five months in federal prison.
U.S. District Judge Dale A. Drozd delivered the sentence following Lauer’s October 2025 guilty plea to conspiracy to commit wire and bank fraud, 12 counts of bank fraud, and 10 counts of wire fraud. The sentencing concludes the legal proceedings against the primary legal architect of a scheme that defrauded investors of $1 billion.
Between 2011 and 2018, DC Solar solicited investments for mobile solar generators mounted on trailers. These units were marketed as portable power solutions for cellular towers and lighting at sporting events.
Investors were told they could claim federal renewable energy tax credits by purchasing the units and leasing them back to the manufacturer, which would then sublease them to end-users. Investigation into the company operations revealed that 95% of the reported lease revenue was actually capital from new investors.
The prosecution stated that the demand for the units was negligible and that the company relied on Lauer to provide an appearance of legitimacy to the business model. Lauer served as the lead attorney for the company for a decade and drafted the contracts used to secure hundreds of millions of dollars in tax equity investments.
Evidence presented during the case showed that Lauer assisted in creating re-rent agreements and backdated documents to account for large movements of cash between accounts. He also prepared sublease agreements containing hidden addendums that changed the financial terms without the knowledge of the investors.
At the height of the operation, the company claimed to have 17,000 generators in its fleet. Federal agents later determined that 9,000 of those units did not exist. The company used the remaining units as props to convince investors and auditors of the scale of the business. Lauer remained with the company through its collapse in 2019 after the FBI raided corporate headquarters and the homes of owners Jeff and Paulette Carpoff.
U.S. Attorney Eric Grant noted that Lauer held a position of trust as an officer of the court and should have intervened when the fraudulent nature of the revenue became clear. The California State Bar placed Lauer on involuntary inactive status in December 2025.
Lauer joins DC Solar owners and several other executives in federal prison. Jeff Carpoff is currently serving a 30-year sentence and was ordered to pay $790 million in restitution.
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