Coalition of State Attorneys General Call for Pink Energy's Lenders to Suspend Payment Obligations

 I am quite frankly amazed that the attorneys general in the 9 most afflicted states have gotten together and presented a common front, not just against Pink Energy - but against the lenders, practically demanding them to suspend payments.  From my point of view, it's the right thing to do - I've just never seen it happen before. I've seen tons of fraudulent operations where the fraudster works arm in arm with the lender, but the attorneys general won't do anything to upset the big money behind the lenders. 

Anyway - I'm treating this as a really good sign.  We are reassessing our strategy from scratch in light of this announcement.  

https://www.wsmv.com/2022/11/22/tenn-ky-ags-seek-help-customers-pink-energy/?outputType=amp

Prisoner's Dilemma and Debt Negotiation

 I love having a partner (Keith Hagan) who an expert in game theory.  We have business clients (multiple) who are just mired in debt to multiple creditors, any one of which can shut them down to the point where they can't pay any of them.  My partner uses the Prisoner's Dilemma scenario to keep the creditors at bay. To overly simplify, the knowledge of each of the players is the key to the outcomes on the prisoner's dilemma scenario.  Keith takes this very academic theory and finds ways to apply it in real life.  It is amazing to watch him work sometimes.  

Prisoner's Dilemma

Indiana Law Firm Hofer Hagan LLP is beginning work on Pink Energy / PowerHome Solar cases

 We are in the early stage of working up a number of  Pink Energy solar panel installation cases.  The deeper I get into it, the more that I see that it is a major project involving a lot of challenges.  I can see why a lot of lawyers want nothing to do with these cases. The company that created the mess, Pink Energy, is bankrupt. The potential clients didn't pay a lot up front, probably don't have a lot of money to spend on a lawyer, but are on the hook for a big loan to a mean old finance company.  The actual subject matter of the contracts is very technical and complex. Just figuring out, explaining and proving the defects is challenging.  

What we have going for us that a lot of lawyers don't is experience in using the FTC Holder Rule against lenders in consumer cases.  Pursuing claims against these lenders could yield very good results and has the potential to protect the clients against having to pay for nonfunctional systems for years to come.  

By the way, here's a good story from CBS4 about the problems of Pink Energy customers in Indiana. 

https://cbs4indy.com/cbs4-investigates/dozens-of-customers-heated-after-installing-solar-panels/

Hyundai is jumping the shark over its response to the auto theft scandal

 Hyundai has been under intensive heat after youtube posts showed how easy it is to steal certain Hyundai models. After a shocking delay, Hyundai announced a solution - an antitheft kit that can be purchased from and installed by dealers - for about $750.00.  As this article points out, an owner might be able to get an equivalent fix outside the Hyundai network for half that amount.  

I suspect that the class action lawyers are going to prevail on this and Hyundai will eventually be sending checks for $750 to affected owners, but that might be years from now.  Meanwhile, Hyundai is losing customers because they deserve to.  

I don't have and don't want cases involving defective Hyundai.  This is just a comment from an outsider looking in.  

The Fall of Pink Energy (also known as Power Home Solar): Don't let the lenders pull one over on you.

 Two years ago, Pink Energy, formerly known as Power Home Solar, was riding high. It was one of the leading companies in home solar installations and a two billion dollar valuation. This week, the company announced that it was shutting down operations and laying off the remainder of its 2,100 employees.

The company had built up a backlog of discontented customers relating to systems that weren't completed or were not working. Pink Energy blamed most of the problems on suppler Generac, but really that doesn't help any of the property owners stuck with problematic Pink Energy systems.  

I have been trying to find out more information about the finance companies used by Pink Energy.  Consumers who did not get what they were promised may have a full or partial defense against payment to the lenders if Pink Energy referred them to the lenders.  Lenders that I am looking at include Sunshine Financial and Technology Credit Union, but there may be many more. 

IF you have a Pink Energy system AND YOU LIVE IN INDIANA, please call me at 317-662-4529.  If you live in another state, go to www.consumeradvocates.org/find-a-lawyer and find a NACA lawyer in your state to talk to.  I can't return calls and emails from people not located in Indiana.  https://www.wral.com/hours-after-5-on-your-side-report-solar-company-goes-out-of-business/20487543/

Broadening our Horizons in Floorplan Defense - Kinetic Advantage, Carbucks, XL Funding, Backlot Cars

 Keith Hagan and I have represented hundreds of clients, defending them in lawsuits brought By Nextgear Capital and Automotive Finance Corporation, but in recent months, we have worked cases involving other floorplan lenders as well, Kinetic Advantage, XL Funding, Backlot Cars, and fielded questions regarding Carbucks.  If you have issues regarding any of these lenders, call Steve Hofer at 317-662-4529 or Keith Hagan a 317-531-4575.  

The Wild West in 401(k) investment scams

 One of the limitations in what investments you can put in 401(k) protected retirement savings plans is that the investment has to be a passive investment. That is: you can't start a business and put it in your 401(k), or more specifically, the performance of the business can't depend on your efforts.  

Lately I have seen a lot of sales pitches for what used to be considered to be risky investments to be put in peoples' 401(k) plans.  

The first is Cryptocurrency. Personally, I think cryptocurrency is a social cancer and should be illegal. I agree with Paul Krugman, Nobel-prizewinning economist. He says Crypto is becoming the new "subprime", and that's not a good thing. I agree with him that Crypto serves no socially-useful purpose, and it is used for socially harmful purposes like money-laundering and spreading cash through illegal enterprises.  It is also socially harmful because unscrupulous promotors can sell cryptocurrency "investments" to people who don't really understand Crypto - which is 99+% of the population including many people making their living off of it.  In my view, Crypto doesn't belong in your IRA at all.  If you ignore this advice, please limit your investment to what you can afford to lose.. If you get scammed, it is unlikely that the government or a private lawyer will be able to get your money back.

The second IRA scam is "Turn Key Real Estate Investments".  According to the seminars, the company helps you find and buy a property, then you hire the company to manage it, and you don't have to do a thing except pick up your money.  Well there is nothing passive about being a landlord. A property that is rented today may be vacant and torn up tomorrow.  Consider this: if the property being offered is such a cash cow: why is it being offered to you?  Why didn't the company buy the property itself? Most of these companies do own properties that they manage.  The cream they keep for themselves.  Ultimately, I think some of these operations will be found to be illegal, but that's not going to help most of the investors.  

The third - Precious Metals - see Cryptocurrency above.  If you don't understand the market, you are liable to get hosed.  

I may add to this post when I think of things.  However you decide to invest your money, I suggest that you diversify both the types of your investment and who you trust to hold onto your money.  People who invested all their money with Bernie Madoff made their first mistake by investing all their money with any single entity.  Don't invest in assets you don't understand.