Ghost Manure Digesters Scheme Sends California Man to Prison

A California man has shown that ghost cattle are unnecessary to create a Ponzi scheme, just ghost manure. Or, at least, ghost manure digesters.

A federal judge sentenced Ray Brewer, 66, Portersville, CA, to six years and nine months in federal prison for a years-long scheme that conned investors out of $8.75 million, according to a statement from the U.S. attorney’s office.

From 2014 through 2019, Brewer claimed to be building anaerobic digesters at dairies in Fresno, Kern, Kings and Tulare counties in California and in Idaho, prosecutors said.

Anaerobic digesters “use microorganisms to break down biodegradable material and turn it into methane” that can be sold and that also provide the producers with Renewable Energy Credits (REC) for producing green energy, the statement from the U.S. attorney’s office said.

Brewer took investors on tours of dairies where he claimed he was building digesters and sent them forged lease agreements. He also sent altered loan agreements with banks and fake contracts with corporations that suggested he had multimillion-dollar financing for the scheme. Brewer told investors he would turn cow manure into methane while they would receive 66% of net profits and tax incentives, federal prosecutors said.

Investor’s money went into several bank accounts under different names, including family members, and for Brewer to purchase land, a custom home and new pickup trucks. Meanwhile, he kept investors informed about the non-existent construction with fake schedules, invoices, power generation reports and photos, prosecutors said.