Solar installer sentenced to six months for swindling dozens of clients

Michael J. Harvey, who pleaded guilty in July to swindling dozens of customers out of hundreds of thousands of dollars for solar systems he never installed, was sentenced Tuesday to six months in the workhouse and ordered to pay restitution of at least $750,000.

The sentence was a significant break for Harvey, who faced as many as 20 years in prison under the original charges filed by Hennepin County Attorney Mike Freeman.

Harvey was the owner and president of Able Energy, an Oakdale company that shut down in 2018 after the Minnesota Department of Labor and Industry revoked Harvey's electrician's license and obtained a court order requiring him to repay $1.5 million to unhappy customers.

In July, Harvey pleaded guilty to theft by swindle, a felony that typically results in no more than a year of jail time.

But Freeman sought an upward sentencing departure, saying in 2021 that Harvey deserved a hefty penalty for masterminding a large criminal enterprise. Harvey also faced a maximum fine of $100,000, but instead was ordered to pay court costs of just $78.

"I'm a little disappointed," said Jeff Hall, a retired social worker from Carlton, Minn. who spent $14,000 for a solar project that was never installed. "I've heard about guys getting a year for shooting a deer out of season, so this seems light to me."

Defense attorney Eric Nelson asked that Harvey be allowed to serve his six-month sentence at home under electronic surveillance. Hennepin County Judge Julie Allyn said that would be too lenient, noting that a 180-day sentence equates to just "five days per victim."

"This was a major economic offense, and it impacted multiple victims over a very lengthy period of time," Allyn said.

Harvey sought bankruptcy protection in 2018, but the case was dismissed after the U.S. trustee filed a lengthy objection, accusing Harvey of lying under oath about his finances and misusing corporate funds.

Allyn ordered Harvey to repay his victims $200 to $500 per month, depending on his income level. At that rate, it could take more than 300 years for all of Harvey's victims to recover their money.

"We are never going to get a dime," said Duluth resident Judy Gibbs, who lost $8,000. "The idea that he is going to get work release is just appalling. He is living in a multimillion-dollar home that he built with our money."

Freeman, through a spokesman, declined to address the victims' complaints.

During the hearing, Harvey offered a brief apology to his victims, saying he hoped they "someday find peace." Harvey said he exhausted his savings trying to save Able Energy.

In seeking a lesser sentence for Harvey, Nelson argued that Able's problems were largely the fault of others, including a former employee who allegedly embezzled $250,000. Nelson also blamed a former business partner who allegedly formed his own solar company employing some of Able's former workers and Using business assets.

Nelson said Harvey panicked when he realized he didn't have the resources he needed to complete dozens of overdue projects.

"Able Energy had over 400 successful installations of solar panels, so there are literally hundreds of satisfied customers," Nelson said. "Mr. Harvey's efforts... were complicated when he lost his license."

Several of Harvey's former customers rejected Nelson's characterization of Harvey. They said Harvey and his employees repeatedly lied to them about the status of the work in an effort to squeeze more money out of them after they already had made down payments equal to as much as 50% of estimated costs.

"Over the past several years, his words and actions show that he doesn't take any responsibility," said Kristina Bergstad, whose real estate company lost $77,000 after hiring Able for apartment projects in Monticello and Cannon Falls. "It was always someone else's fault."

Nelson said Harvey hopes to pay his victims back through a new venture that offers services to beekeepers.

Harvey is currently earning about $1,600 a month from the bee business, which operates out of his home in River Falls. One firm, Kinnickinnic Bees, sells honey while the other, Hyper Hyve, is trying to raise money for a new synthetic beehive system that depends on smartphone technology.

As part of his sentence, Harvey was forbidden from personally engaging in fundraising on behalf of the business or selling the devices.

"You are not to have any fiduciary responsibilities," Allyn said.