FRESNO – A Central Valley man was sentenced to federal prison Monday after he was convicted in a nearly $9 million Ponzi scheme where he claimed to turn cow manure into green energy.
According to U.S. Attorney Phillip Talbert’s office, 66-year-old Ray Brewer of Porterville received a sentence of six years and nine months after pleading guilty to the scheme, which took place between 2014 and 2019.
Prosecutors said Brewer stole $8.75 million from investors in the scheme, in which he claimed to build anaerobic digesters on dairy farms in Fresno, Kern, Kings and Tulare Counties, along with other counties in California and in Idaho.
The devices use microorganisms to break down manure into methane gas, which could be sold as green energy. Methane also produces renewable energy credits, which are often used by companies to meet green energy goals.
Brewer touted that investors would receive 66% of all net profits along with tax incentives, according to prosecutors.
During the scheme, Brewer took investors to dairies where he said he was going to build the digesters. He also sent investors forged lease agreements with dairies, along with altered agreements with banks that made it look like he obtained millions of dollars in loans and forged contracts with multinational companies that made it appear he had secured revenue streams.
Investors also received fake pictures of the digesters under construction, along with fake documents that claimed to show progress was being made.
“None of this was true,” Talbert’s office said in a statement Monday .
Prosecutors said Brewer transferred the stolen money to other bank accounts opened under the names of different entities, family members and an alias. Brewer also used the money to purchase two plots of land larger than 10 acres, a 3,700 square foot custom home, along with two Dodge pickup trucks.
When investors asked for refunds, prosecutors said he used newly received money from other investors.
Brewer eventually moved to Montana and assumed a new identity after investors realized the fraud and filed lawsuits against him.
At the time of his arrest in 2020, Brewer told authorities that they had the wrong man. He also claimed that he was in the U.S. Navy and saved several soldiers from a fire.
“Brewer has since admitted that these were both lies meant to curry favor with law enforcement,” prosecutors said.
Brewer was indicted on 24 counts , which included wire fraud, money laundering and identity theft. He pleaded guilty to charges in February .
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