The second man in a trio of accused rip-off artists charged with fleecing nearly two dozen customers of $2 million in a bogus green energy scheme admitted his guilt Thursday before a U.S. judge.

Kevin Carney, 60, of Euclid, Ohio, pleaded guilty to conspiracy to commit mail fraud and wire fraud.

Carney and two others, Robert Irey of Clarksville, Greene County, and Jonathan Freeze of Pittsburgh, had been indicted in Pittsburgh last year after an investigation by the FBI and U.S. postal inspectors.

Irey pleaded guilty in November.

The three told investors they had $100 million in financing for a power plant in South Carolina.

They promised a high return on investment through their company, Alternative Energy Holdings, which they said was going to build the plant to convert biodegradable waste into energy.

They solicited short-term loans offering high interest rates and in some cases part ownership of Alternative Energy Holdings called "membership units," telling their victims that the money would be used for business expenses.

In truth, according to the plea, they split the money three ways and used it for rent, vacations, dinners and weddings.

From June 2016 to April 2018, they stole $2,017,228 from 22 victims.

Carney acted as a manager for the company and listed his house as the business address. Irey also acted as a manager while Mr. Freeze brought in clients through his contacts as an investment adviser, according to the government.

The men promised return rates of up to 50% on promissory notes.

In one example, a victim wired $100,000 to an account controlled by the trio on the promise that they would earn a 50% return in 30 days and then $30,000 a month for a year.

The three men collected the money and split it three ways, each getting $33,000, which they used for themselves, authorities said.

The case against Mr. Freeze is pending. Irey will be sentenced in the summer.

First Published: February 24, 2022, 10:51 p.m.