People’s Power & Gas (“PPG”) was destroyed by Forest Capital’s disguised financing they used to embezzle funds and defraud the company. Forest Capital’s owners and co-conspirators systematically took control of the company’s cash flow, customer payments and accounting records to control and cover up their embezzlement. Forest Capital became the first recipient of PPG customer payments regardless if they provided PPG an advance or not. Utility payments went directly into Forest Capital’s bank account that only they could view and control. These bank statements have never been provided for anyone’s review and they even withheld listing the account used for PPG when Forest’s creditors initially put them into bankruptcy.

Forest Capital preplanned and successful defaulted PPG with the New England ISO (the power grid, “ISONE”), on Christmas Eve 2013 which ultimately put PPG out of business. Throughout that last month in December, Marty Helfand, CFO of Forest Capital, seemingly submitted fictitious advance requests to their lenders, supposedly on PPG’s behalf. It’s apparent to me that Forest Capital further defrauded even those they borrowed from to exacerbate their extraction of cash and ruse. On their own, Forest Capital created these PPG advance requests to their lender that would go to pay themselves from a previously received advance from a few days prior, to then again request another advance to pay that prior one off to themselves, so on and so on. Forest created their own internal transactional Ponzi Scheme, exacerbating their embezzlement and then deliberately defaulted PPG by not making the power payment on time with the ISONE on Christmas Eve to cover up their fraud and blame PPG. That unrecoverable ISONE default Forest Capital caused sent all of PPG’s New England customers back to the regulated utilities and ultimately put PPG out of business.

The motive is clear and the numbers can’t lie. Forest Capital is in the arbitrage of interest business. Evidence now suggests that Forest Capital must have planned to defraud either their lenders, clients, or both as money they borrowed could have cost them more in interest than the amount they were charging!

Citrin Cooperman (“Citrin”) is the accounting firm hired by PPG to provide reviewed financials and figure out what Forest Capital was hiding in 2013. Forest Capital’s fraud should have been uncovered then. In April 2014, Forest Capital’s accounting firm SCH, sent PPG a signature request on their audit letter. SCH audit was asking for PPG to acknowledge the amount SCH says Forest’s records reflect. I then took what Forest/SCH said PPG owed, simply calculated agasint known payments Forest directly received from PPG customers after that audit date. Forest was not owed anything and that they actually owed PPG roughly $2.5M according to their own accounting (exhibit #2 below). Forest’s attorneys quickly disregarded SCH’s audit report and then provided PPG’s attorney fictitious accounting that clearly reversed several large payments.

Unfortunately, Citrin Cooperman was again retained in 2014 to now perform a forensic accounting report on PPG. However, since Citrin did not uncover Forest’s fraud in 2013, which would have saved PPG, their new engagement in 2014 only permitted Citrin to seemingly protect themselves from malpractice due to their incompetence and gross negligence in 2013. Citrin seemed to drag their feet, put one guy on our case who worked off and on for almost a year. With pressure to deliver, Citrin then provided a “draft report” that they repeatedly said would be the same as their final. Although this report was still favorable for PPG and shows Forest Capital owed PPG roughly $2M, it was not forensic accounting on a transaction by transaction basis and simply calculated money in agasint money out while they further provided Forest credit for everything possible as a worst case scenario. Even payments from utilities Forest received, never provided PPG any advance on, but passed through to PPG, Citrin would reflect that as a debt owed back to Forest Capital!

Citrin had been paid $77,100 at the time of them providing the “draft report.” Alan Schachtner of Citrin added roughly another $60K to the bill on the last month and even included an amount due now for his possible testimony in the future while refusing to provide the “final report” otherwise. Seemed and felt like extortion as Citrin knew I did not have another $60K. Citrin also knew how important it was to me and the impact it would have in PPG’s involuntary bankruptcy case agasint Forest. Although I did not agree with their methodology, it at least was favorable being a second accounting firm to prove that Forest owed PPG. It further would have forced PPG’s trustee to investigate my dispute of Forest Capital’s false proof of claim. Instead of Citrin fulfilling their obligation, making a difference and helping their client, it felt like extortion with their overbilling and refusal to provide the final report without the word “draft” across it. Everything can be seen in the PPG Timeline and I will separately be posting the Citrin accounting report and our communication here for the worlds determination, judgement and review.

The PPG accounting report only uses verifiable third party data which includes bank statements and utility payment reports against the fraudulent accounting Forest Capital provided.

We will be posting all the documents and corroborating evidence here for the world to view. Thank you for your interest in our continued effort and pursuit for prosecution and conviction agasint Forest Capital’s owners and their co-conspirators. This sites development is ongoing so please visit again.

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Rodney ``John`` Fox

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Marty Helfand

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Donald Kennedy