They promised investors a chance to fund renewable energy. Instead, prosecutors say, the executives behind an Essex County “clean energy” company spent that money to bankroll a lavish lifestyle that included a rented mansion, luxury cars, and large cash withdrawals.
Ari Goldstein, 55, of North Caldwell, New Jersey, and Abbie Mandell, 51, of Bethpage, New York, have been indicted on charges of defrauding investors out of roughly $3.3 million through their Essex County-based firm, Breezy Point Energy Corp., Attorney General Matthew J. Platkin announced in a press release Wednesday.
Goldstein, the company’s CEO, and Mandell, a senior executive, allegedly told investors about a promising renewable energy project in Montana. They claimed Breezy Point Energy owned or controlled land there and was close to securing major business deals that would soon deliver significant financial returns. Prosecutors say the company appeared to some investors as being worth billions of dollars.
The state Division of Criminal Justice says Breezy Point Energy never acquired or controlled land in Montana and conducted little, if any, legitimate renewable energy work. The company also claimed to pursue large-scale wind and solar developments, which authorities say Goldstein and Mandell completely fabricated.
Instead of using investor money for renewable energy projects, the two executives diverted the funds to pay themselves hefty salaries, lease multiple luxury cars, rent a mansion for Goldstein’s family, and make numerous large cash withdrawals.
Goldstein also faces two additional counts of theft by deception and 10 counts of tax fraud. Prosecutors accuse him of filing false returns, failing to file required tax documents, and not paying income taxes between 2020 and 2024.
“The defendants allegedly took advantage of a genuine need and public interest in renewable energy to trick investors into believing that their company was a valuable and legitimate business enterprise,” Platkin said. “We allege it was not. Instead, the defendants allegedly used the company as a vehicle to take millions of dollars from vulnerable investors.”
The indictment follows an investigation by the Office of Securities Fraud and Financial Crimes Prosecutions, the Division of Criminal Justice, and the New Jersey Division of Taxation. Officials said the alleged scheme preyed on investors’ growing interest in renewable energy and sustainability, areas often associated with innovation and public good.
“The securities fraud scheme set out in the indictment allegedly harmed victims by exploiting their interests in developing green energy with empty promises of high investment returns,” said Legal Chief Pablo Quiñones of the Office of Securities Fraud and Financial Crimes Prosecutions.
Both Goldstein and Mandell face second-degree securities fraud, theft by deception, and misconduct by a corporate official charges, among other counts. Goldstein faces additional tax-related charges. Second-degree crimes in New Jersey carry potential prison sentences of five to ten years and fines up to $150,000.
The investigation remains ongoing. Anyone with information should contact the Division of Criminal Justice tip line at (800) 277-2427 or use the OSFFCP’s complaint email at [email protected].
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until a court proves them guilty.
Alondra Cabrera is the Editorial Assistant at New Jersey Digest. She recently graduated from Montclair State University with a degree in Communication and Media Studies. During her time at school, she discovered her passion for journalism and content creation. In her free time, she loves to create and edit videos for her corgis, Rafi and Toffe, and indulge in culinary adventures with her friends. Alondra also enjoys traveling, cooking, and working out. She is excited to embark on her professional journey in media and looks forward to contributing her skill and creativity to her role here at New Jersey Digest.
