FBI Raids 'Connected' Energy Firm Solyndra

Raid follows ABC News report on huge loan from Obama administration.

ByABC News
September 8, 2011, 11:50 AM

Sept. 8, 2011 — -- The FBI has confirmed to ABC News that federal agents are conducting a search this morning at the offices of Solyndra, the now-bankrupt California solar power company that received $535 million in federal loans under a green energy program touted by President Obama.

The raid is part of a joint operation between the FBI and the Department of Energy's Office of Inspector General, Public Affairs Specialist Peter D. Lee said Thursday morning. Lee said he could not disclose the reason for the raid because the matter is under seal. Karen Sulier, a spokeswoman for the Department of Energy's inspector general's office, confirmed its part in the probe.

Beginning in March, ABC News, in partnership with iWatch News/the Center for Public Integrity, was first to report on simmering questions about the role political influence may have played Solyndra's selection as the Obama administration's first loan guarantee recipient. Federal auditors had flagged the loan, saying some applicants had benefitted from special treatment.

WATCH the Original ABC News Report on Solyndra

READ About Solyndra's Low Interest Loan

One of the lead private investors in Solyndra was an Oklahoma billionaire who served as an Obama "bundler," raising money during the 2008 presidential campaign.

The bundler, George Kaiser, has declined to comment. His firm, Argonaut Ventures and its affiliates have been the single largest shareholder of Solyndra, according to SEC filings and other records. The company holds 39 percent of Solyndra's parent company, bankruptcy records filed Tuesday show.

Energy officials have repeatedly denied those allegations, saying the selection process was even handed. Until two weeks ago, the Obama administration held out Solyndra as a model for its green energy program, which was devised to create jobs and spur investment in cleaner sources of energy. President Obama personally visited the Solyndra plant last year, and his Energy Department made it the first to win approval of a federal loan guarantee. The $535 million federal investment enabled the company to build a sprawling manufacturing facility.

Last week, Solyndra abruptly shut its doors, announced it was laying off 1,100 workers, and then filed for bankruptcy. Executives with the company and federal energy officials said the company's failure was the result of intense competition from China.

But questions about the federal support for Solyndra continued to grow. In May, ABC News and iWatch News reported that officials at the Office of Management and Budget had raised concerns about the risks of the Solyndra loan, and that the Energy Department had been forced to restructure the deal.

On Wednesday, ABC News and iWatch News reported that Solyndra had also benefitted from the terms of a loan with the Federal Financing Bank. The extremely low interest rates for its loan were the lowest of any Energy Department recipients.