Report: SEC Investigating McAuliffe Co-Founded Electric Car Company

The Securities and Exchange Commission has been investigating an electric car company co-founded by Democratic Virginia gubernatorial hopeful Terry McAuliffe, the Washington Post reported Friday.

The SEC subpoenaed documents from the car company, GreenTech Automotive, as well as bank records from a sister company called Gulf Coast Funds Management, according to the Post. Gulf Coast is run by Anthony Rodham, the brother of former Secretary of State Hillary Clinton.

The report said that the full focus of the investigation was unknown but that documents show it is at least partly focused on allegations the company “guarantees returns” to its investors.

The Post also noted that GreenTech had used a federal program that grants special visas to overseas investors who contribute at least $500,000 toward creating U.S. jobs. The program has come under extra scrutiny by the SEC recently over concerns that investors of companies are being misled or defrauded.

A spokesman for McAuliffe’s campaign told the Post that the candidate “has no knowledge of any investigation.”

Representatives from both GreenTech and Gulf Coast confirmed to the Post on Thursday that they had received subpoenas from the SEC and planned to cooperate with the investigation.

McAuliffe resigned as GreenTech’s chairman last year as he ramped up his campaign for governor, although his exit was not publicly disclosed until April.

Masthead Masthead
Editor & Publisher:
Managing Editor:
Senior News Editor:
Assistant Editor:
Editor at Large:
Investigations Desk:
Senior Political Correspondent:
Senior Editor:
Front Page Editor:
Social Media Editor:
Editor for Prime & Special Projects:
General Manager & General Counsel:
Executive Publisher:
Head of Product:
Director of Technology:
Publishing Associate:
Front-End Developer:
Senior Designer: