Pennsylvania man pleads guilty to defrauding $2M from investors

PENNSYLVANIA (WTAJ) — A Pittsburgh man has pleaded guilty in federal court to defrauding his investors out of $2 million in a green energy scheme.

Jonathan Freeze, 65, pleaded guilty to a charge of conspiring to commit mail and wire fraud, according to United States Attorney Eric G. Olshan. He pleaded in front of United States District Judge Robert J. Colville and his sentencing has been set for Jan. 22, 2025.

According to a release from the Department of Justice, Freeze and his co-conspirators, 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. From approximately June 2016 until April 2018, approximately 22 victims loaned AEH $2,017,228.44.

Freeze and the other men then split the victims’ funds three ways and used it for their personal benefit, including for gambling, high-end clothing, and restaurants, according to court documents.

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The law provides for a total sentence of up to 20 years in prison, a fine of up to $250,000, or both.

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