Ohio Man Sentenced to Prison for Defrauding Investors in $2 Million Green Energy Scheme

PITTSBURGH, Pa. - A resident of Euclid, Ohio, was sentenced in federal court on March 11, 2025, to 30 months of prison, to be followed by three years of supervised release, on his conviction of conspiracy to commit mail fraud and wire fraud, Acting United States Attorney Troy Rivetti announced today.

United States District Judge Robert J. Colville imposed the sentence on Kevin Carney, 63.

According to information presented to the Court, Carney and his co-conspirators, Robert Irey (deceased) and Jonathan Freeze, owned and ran a company called Alternative Energy Holdings, LLC (AEH). The co-conspirators informed victims that AEH was going to build a plant that would convert biodegradable waste into green energy and offered the victims an opportunity to invest in AEH. Specifically, the co-conspirators solicited short-term loans that offered high interest rates and, in some cases, an ownership interest in AEH. Carney and his co-conspirators told victims that their funds would be used for costs associated with building the plant and other business expenses. Instead, the co-conspirators 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, the co-conspirators did not repay the victims. From approximately June 2016 until April 2018, the co-conspirators defrauded over 20 victims out of approximately $2 million.

Both Irey and Freeze also pleaded guilty to conspiring to commit mail fraud and wire fraud, with Freeze currently scheduled for sentencing in May 2025.

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

Acting United States Attorney Rivetti commended the United States Postal Inspection Service and Federal Bureau of Investigation for the investigation leading to the successful prosecution of Carney.