The cash-strapped controversial wannabe nuclear developer Alternate Energy Holdings has agreed to shell out $450,000 to settle one of two lawsuits against the company.
In December 2010, a class action suit alleged AEHI CEO Don Gillispie was engaging "in a scheme to manipulate and artificially inflate the market prices of Alternate Energy stock by paying stock promoters to create artificial demand in the marketplace." The suit also alleged that Gillispie and his AEHI officers "misrepresented the company's true financial condition."
In January 2011, AEHI was slapped with another lawsuit, but in a settlement finalized on Oct. 31, Gillispie and his company agreed to pay $450,000 but admitted to no wrongdoing in the second suit.
But AEHI confirmed last week that it was being investigated by the U.S. Department of Justice, while the Securities and Exchange Commission wants a federal judge to again freeze AEHI's assets, pending further litigation.
The Associated Press reported that AEHI investors recently received questionnaires from the U.S. Department of Justice regarding dealings with AEHI. In particular, prosecutors wanted to know how stockholders had obtained their shares.
AEHI insists that it is still moving forward with its plans to build a nuclear power plant in Payette County.