Man pleads guilty to federal charges in clean energy fraud scheme

Investors in a fraudulent clean energy scheme might be one step closer to getting their money back, after the partner of a Chicago area businessman pleaded guilty to federal charges.

J.D. Frost pleaded guilty to wire fraud and money laundering charges on Tuesday in federal court in Tennessee.

He admitted to conspiring with a business partner to seek investments in the construction of a hydrogen plant using slick social media promotions and a podcast, only to use the money for their own personal gain.

An attorney for some of their investors said the hydrogen plant never existed.

"It never was anything. They spent about $200,000 on architects, and that's about it," attorney Alex Loftus said.

The investors' attorneys have said Frost has agreed to cooperate in the investigation of his partner, Paul Croft.

According to the charges against Frost, he and his partner obtained approximately $54 million through their scheme, and filed thousands of false income tax returns to avoid paying more than $8 million in taxes.

The investors' attorneys said about $46 million of the money the pair swindled from their investors went to pay for expensive cars.

As part of his plea deal, Frost was ordered to pay $70 million dollars to the federal government, which – if he has it – would help pay back investors, who have filed a class-action lawsuit against Frost and Croft in Cook County Circuit Court.