Waukesha Solar Company’s Failure Shuts Door on Refunds for Customers
Customers of Sun Badger Solar, a now-defunct solar company based in Waukesha, are left in limbo after a Waukesha County Circuit Court judge approved the closure of receivership proceedings last month. The decision effectively ends immediate chances for refunds for unfinished solar installations, leaving many customers frustrated and without recourse.
Receivership Prioritizes Unpaid Wages Over Customer Refunds
The court-appointed receiver, attorney John Wirth, oversaw the liquidation of Sun Badger’s assets, including an auction that raised $226,786. However, after administrative expenses and prioritization under Wisconsin state law, the Wisconsin Department of Workforce Development (DWD) was the sole recipient of recovered funds. Over $120,000 will go toward unpaid wages for the company’s former employees, as the law prioritizes employee compensation after secured creditors are paid.
Alleged Embezzlement Complicates Recovery Efforts
Sun Badger’s financial collapse was further exacerbated by allegations of embezzlement. Deloitte Risk & Financial Advisory conducted a forensic review of the company’s finances and identified that a high-ranking finance employee in Illinois had embezzled over $500,000. This money was reportedly used for personal expenses. Illinois law enforcement is investigating the case, but no charges have been filed, and criminal proceedings may take more than a year to conclude.
What This Means for Sun Badger’s Creditors and Customers
- Customers with Unfinished Projects: Sun Badger left dozens of projects incomplete when it terminated its LLC license in March 2023. Customers hoping for refunds have few options, as the company’s remaining assets have already been allocated.
- Employee Restitution: Approximately $126,000 recovered through receivership will be used to pay wages owed to employees. A DWD investigation found Sun Badger owed $430,363 to about 36 employees.
- Future Legal Action: Customers may consider legal action against the company’s owners individually, but Wirth cautioned that such efforts may not be cost-effective.
Receivership Findings
- Asset Dissipation: By the time receivership began, many of Sun Badger’s physical and financial assets had been dissipated or seized by creditors.
- Customer Claims: A total of 124 creditors submitted claims totaling over $12.2 million. Despite these claims, limited assets and the priority of wage payments left customers with no immediate compensation.
Continuing Investigations
The FBI’s Milwaukee field office confirmed an ongoing investigation into Sun Badger’s internal operations, but further details remain under wraps. The Wisconsin Department of Justice and Department of Agriculture, Trade, and Consumer Protection have not commented on the case.
Lessons for Customers and Businesses
This case underscores the risks associated with paying upfront for significant projects, particularly with companies showing signs of financial instability. Sun Badger’s collapse also highlights the importance of oversight and accountability in managing corporate finances.
For now, Sun Badger’s customers must navigate a complex legal landscape with limited hope of recovering their losses. This story serves as a reminder for consumers to exercise caution and for businesses to maintain transparency and ethical practices.
Stay updated on developments in this case and similar stories by subscribing to Milwaukee Reports.
