Biden Adm. Gave $375M Loan to Company That Allegedly Defrauded Investors
The lack of vetting by our government never ceases to amaze me when it comes to handing out money.
Look no further than the lack of accountability in all the money we are sending to Ukraine.
Or how about Dr. Fauci openly admitting there was no accountability for the money that was sent to the Wuhan lab for research?
Now we can add a $375 million loan that the Biden administration gave to the Li-Cycle, a company that is about to go belly up.
The loan was given by Director Jigar Shah for a New York facility to house Li-Cycle.
The loan was issued as part of the Department of Energy’s (DOE) Loan Programs Office (LPO) when Shah started to push in favor of the company so it could build its plant in Rochester, NY.
A class-action lawsuit has now been filed against Li-Cycle for defrauding its investors by making false statements and/or withholding information about the new facility.
On October 23, construction was paused, and the stock has tanked by 88%.
The financials for the company show a net loss of $130.5 million with only $4.5 million generated in income. The books show a negative bottom line of $350 million. So even that $375 million check will barely leave any money in the till.
George Conboy, an analyst and the Chairman of Brighton Securities stated, “If they’re not bankrupt in six months, I’ll be surprised. No one in their right mind would loan them money.” Well, that would be except for the Biden administration which is writing checks with taxpayer money.
In February, Senator Chuck Schumer (D-N.Y.) proudly announced that “$375 million will now supercharge Li-Cycle here in Rochester, with 270 good-paying jobs, to become one of America’s largest suppliers of recycled materials for batteries.”
Just prior to Li-Cycle announcing the pause in construction, Shah provided written testimony to the Senate Committee on Energy and Natural Resources, stating, “LPO conducts rigorous due diligence that is comparable to, if not more stringent than, what might be done in the private sector.
“For all potential project sponsors and borrowers, LPO employs robust Know Your Customer policies, background checks, and other measures to ensure a clear understanding of the potential borrower.”
That statement is almost laughable and the timing could not be worse.
It looks like Biden’s key officials are just as intelligent as his judiciary nominees, as we have all seen how Senator Kennedy (R-LA) has destroyed them.
A box of rocks has more intelligence than the collective of this administration.