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The Fun CPA Shares How to Work No More Than 40 Hours In Tax Season

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For many accountants, working just 40 hours a week during tax season sounds like a fantasy.Tax pros often work 60+ hours for months straight, wearing those long hours as a “badge of honor” in a profession that glorifies the grind.

Yuri Kapilovich, known as “The Fun CPA,” has rejected that model entirely. He’s built a practice where he works just 40 hours during tax season and just 10-15 hours per week the rest of the year. His firm generates roughly $225,000–$250,000 annually, giving him time for family, fitness, and hosting memorable networking events.

Earn CPE for this episode: You can earn Continuing Professional Education credit by listening to the podcast and then taking a brief quiz in the Earmark app.

Escaping the Public Accounting Treadmill

After 12 years and seven different firms, Yuri kept encountering the same frustrating culture: pressure to bill more hours, looking busy for appearance’s sake, and efficiency being punished.

“I would look at these partners who are in the office more than I am. I’m leaving and they’re still there,” he recalls. “They have a boss, just like I have a boss. If I can make $800,000 and work 10 to 2, I would have stayed. But you can’t.”

Yuri decided to break free by purchasing a small block of clients from a friend. That deal unexpectedly fell apart, but he decided to move forward anyway. He contracted part-time with two CPA firms, working two or three days a week while gradually building his client base. This bridge approach kept his income steady and let him say “no” to prospective clients who weren’t a good fit.

The Economics of Premium Pricing

The foundation of Yuri’s business model is simple but powerful: charge more, serve fewer clients, and provide exceptional value. He started with a minimum fee of $800 and now won’t take on any tax-only client for less than $2,000.

Yuri emphasizes that working fewer hours doesn’t mean delivering less value. It’s about charging enough to serve clients well without drowning in low-fee work. He explains the difference between accepting hundreds of returns at $300–$500 each—earning decent revenue but shouldering an avalanche of busywork—and serving fewer clients at a much higher minimum fee.

Here’s how the math works when comparing traditional high-volume practices to his approach:

Traditional Model:

  • 300 clients at $500 per return = $150,000 revenue
  • At least 1 hour per client (realistically more with admin, communication, etc.)
  • 300 hours over just 8 weeks (Feb 15 – Apr 15) = 37.5 hours weekly at a minimum
  • Reality: Information arrives late, questions pile up, schedule compresses
  • Result: 60+ hour weeks, constant administrative chaos

Yuri’s Model:

  • 100 clients at $2,000+ per return = $200,000+ revenue
  • Higher-value clients with more complex needs
  • Work spread more evenly, better boundaries
  • Result: 40-hour weeks max, even during tax season

That doesn’t simply triple his revenue per client—it dramatically changes his day-to-day life. He feels in control of his workload, and his clients benefit from more personalized attention.

The most surprising discovery? Yuri says, “As the price went up and as you’re dealing with somebody who’s seeing your value, you know what goes down? The number of questions, the number of bothers.”

Service Packages That Create Value for Both Sides

Beyond standalone tax returns, Yuri offers:

Quarterly Package: Starting at $1,500 per quarter ($6,000 annually)

  • Tax preparation for business and personal returns
  • Proactive tax strategy discussions
  • Quarterly planning meetings (approximately one hour each). Having this regular touchpoint helps avoid unpleasant surprises in April.

Monthly Package: The “full service” option

  • Everything in the quarterly package
  • Bookkeeping (outsourced locally in Brooklyn)
  • He still maintains a quarterly meeting schedule rather than monthly. This structure keeps everyone on track but prevents excessive demands on his time.

Life by Design: What Freedom Looks Like

In large firms, partners can earn very high incomes—sometimes $800,000 or more a year. But from Yuri’s perspective, those partners often trade away family time, mental health, and control of their schedules to hit those numbers. Many are still at their desks long after younger staff have gone home.

Yuri has optimized his practice to support his priorities: 

  • family time with his two young children (ages 2 and 6), 
  • fitness, and 
  • enjoying life.

His summer schedule is particularly enviable. “My friends make fun of me, and it’s partially true—I don’t really work. Especially in the summertime, it’s like 2 to 3 hours a day at most. And we can do it from anywhere.”

He’s accessible to clients (they can text him directly), but because he’s selective about who he works with, this accessibility doesn’t become overwhelming. He even occasionally takes client calls while at the gym.

Yuri also hosts creative networking events to bring business owners together. When asked what he gets from these events, he answers simply: “I have no goal. I literally am here to put these people together so they can interact and do business together.”

Breaking Free: Advice for Building Your Practice

If you’re considering a similar path, Yuri offers these tips:

  • Start with Contract Work
    “My advice to anybody looking to go out on their own—try to find a contracting gig. Those 2 to 3 days will keep the lights on while you build your firm the way you want to with the other 2 or 3 days.”
  • Start with Higher Fees Than You Think

“If you’ve already built a firm with a lot of volume but want to get to the value aspect, it is extremely difficult to just all of a sudden say, ‘By the way, I know I was charging you $500, it’s $1,000 now.’ Not only will you lose the client, but you’ll lose reputation and street cred.”

  • Be Ruthlessly Selective About Clients
    “Here’s how the conversation typically goes with a prospect looking for cheaper returns: ‘Hey, are you taking on clients like me?’ And I’ll say, ‘Are you a business owner?’ And they’ll say, ‘No, I have a W-2 only.’ I’m like, ‘I’m happy to work with you W-2 only. My minimum fee is $2,000.’ Then I stop talking.”
  • Create a Memorable Brand

Whether intentional or not, having something that makes you stand out helps attract the right clients and sets expectations about your approach to accounting.

Building the “Fun CPA” Brand

Establishing a personal brand was a key part of Yuri’s strategy. His Instagram handle and hashtag—#thefunCPA—emerged almost by accident. But it quickly set him apart in an industry that often feels stiff. He showed up at events with “Fun CPA” banners, printed T-shirts, and a big smile, which made people do a double take.

Yuri also hosts networking events that don’t feel anything like typical “mixers.” He might invite business owners on a boat outing or to a local hangar party where private jets are on display. His main purpose is to connect people and let them create business opportunities together. If they want to talk taxes or accounting, they’ll ask.

Rethinking Success in Accounting

The accounting profession often measures success by top-line revenue and billable hours—metrics Yuri calls “trash” and “imaginary.”

“I think as a profession we need to refocus. And especially if we want to fix this pipeline problem, the way we do that is by focusing on the people—your number one asset,” he says. “When you neglect that and just grind them for billable hours that mean absolutely nothing, it is of no surprise to me that people are leaving.”

Yuri’s model shows that building a profitable, sustainable practice that prioritizes accountant and client well-being is possible. By serving the right clients at the right price, you can transform accounting from a seasonal grind into a genuinely rewarding career—one with time for birthday celebrations, family dinners, and maybe even the occasional boat day.

Want more details? Listen to the full Earmark Podcast episode with Yuri Kapilovich, and don’t forget you can earn CPE credit by downloading the Earmark app and taking a quick quiz after you listen.

Design Better Habits, Build a Better Accounting Firm

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When Rachel Dillon began her 4:30 a.m. workouts in January 2010, she only knew she needed a routine that fit her teaching schedule. She had no idea this personal commitment would eventually shape how she and her husband, Marcus Dillon, run their accounting firm, Dillon Business Advisors. Years later, they discovered that the same habits guiding their health journey could also help them overhaul their business.

Starting from Excess and Finding Focus

In 2016, Rachel and Marcus merged their firm with a mentor’s practice. This left them juggling more clients than they could serve effectively. At the same time, they were both working with a nutrition coach to improve their health. Seeing how steady, daily actions led to personal change, they realized these principles could solve their firm’s overload problem.

The final puzzle pieces came together when the Dillons read James Clear’s Atomic Habits. They recognized they’d already been applying many of his ideas to their personal lives and their accounting practice. This sparked an intentional approach to three principles that continue to guide their growth today.

1. Make It Obvious and Easy

A big lesson from Atomic Habits is turning good intentions into obvious, easy actions. The Dillons did this by scheduling important firm tasks at the start of each year. They get quarterly client meetings, team scorecards, and even vacation windows on the calendar long before anything else can crowd them out.

Rachel explains, “What gets measured, gets managed, and what gets scheduled is more likely to happen.” 

Going on a family vacation during spring break is nearly unheard of in accounting firms as it often falls right in the middle of the March 15th and April 15th tax deadlines. But the Dillons started blocking off spring break in small steps. At first, it was just a few days, but then they eventually built up to the entire week. This helped them balance busy season deadlines with time for family. Over time, team members also learned that when tasks and priorities are clearly laid out, everyone stays accountable.

2. Environment Design

Environment design means shaping spaces and systems so the right behaviors become natural. When Rachel and Marcus wanted more flexibility for their team, they began transitioning to remote work. Before going fully remote, they tested digital tools like Microsoft Teams so people became comfortable collaborating online. They also invested in proper desks, monitors, and other equipment rather than letting everyone rely on a single laptop at the dining room table.

According to Marcus, “If someone stayed on one small laptop for five years, they wouldn’t be as effective. Actually spending money on environmental design was a good call.” By building a flexible, remote-first culture, they kept talented staff who valued autonomy. They also served clients more effectively because team members had the right setups to do their work.

3. Identity-Based Habits

Finally, the Dillons aligned their daily actions with the values and identity they wanted for their firm. Marcus and Rachel emphasize transparency, so they share their objectives early—even when they’re unsure how plans will unfold. For example, they’ve begun exploring possible firm acquisitions to grow beyond the standard one-client-at-a-time model. They keep their team in the loop even before potential deals become certain.

“Transparent leaders do this,” says Rachel. Their team appreciates being trusted with big-picture thinking and offers ideas for making acquisitions smoother. Marcus adds that their firm’s vision and values mirror their personal ones, so it feels natural rather than forced. When beliefs, words, and actions match, big changes tend to stick.

Personal Habits Fuel Professional Results

The Dillons’ story shows that lasting change often starts with personal commitments. By applying principles of habit formation to their firm—making tasks obvious, designing supportive environments, and acting consistently with their values—they’ve built an organization that embraces growth year-round.

To learn more about how Rachel and Marcus continue to evolve their firm and stay true to their values, listen to the full episode of the “Who’s Really the Boss” podcast. You can also visit Collective.cpa for more resources to help you design a modern accounting practice.

Rachel and Marcus Dillon, CPA, own a Texas-based, remote client accounting and advisory services firm, Dillon Business Advisors, with a team of 15 professionals. Their latest organization, Collective by DBA, supports and guides accounting firm owners and leaders with firm resources, education, and operational strategy through community, groups, and one-on-one advisory.

Building Sustainable Accountability: How to Maintain Momentum Year-Round

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Every January, millions of people set out to transform their habits, only to find themselves struggling by mid-month. In fact, the second Friday of January is known as “Quitters Day,” when many throw in the towel on their New Year’s resolutions. For accounting professionals, the challenges compound: a 2024 Forbes study reports that 50% of resolution-makers quit by March—precisely when tax season intensity is at its peak.

In a recent episode of the Who’s Really the BOSS? podcast, Rachel and Marcus Dillon of Dillon Business Advisors (DBA) acknowledge these hurdles but also share practical ways to overcome them. As accounting firm owners, they see firsthand how easy it is for accounting professionals to abandon both personal and professional goals amid looming deadlines and long work hours. Yet the Dillons have developed reliable strategies—grounded in accountability and careful planning—that can keep momentum strong year-round.

The Unique Pressure on CPA Firm Owners

While most people struggle to sustain enthusiasm after the holidays, accounting firm owners have a double challenge. January’s fresh start quickly collides with ramping up for busy season, and by the end of March, many people’s goals have fallen by the wayside. After April 15th, it’s tempting to celebrate the season’s end or simply recover, making it even harder to pick up abandoned routines.

“I just do not like January at all,” admits Marcus. “A lot of us grew up in accounting—we dread January and starting the year new.” When you start with a clean P&L and the celebration of last year’s successes ends, accountants often feel they’re starting from scratch. Layer on the time crunch of tax deadlines, and it’s easy to see why many resolutions vanish by March.

Rachel adds, “You think ‘I just need to get through the next few weeks or this deadline,’ and really, you just let everything from January and February go.” Instead of waiting for post-deadline recovery to refocus, the Dillons recommend building accountability systems that prevent goals from slipping in the first place.

Goals for 2025: Firm Growth and Beyond

The Dillons prefer the concept of measurable goals over open-ended resolutions. DBA heads into 2025 with clear objectives:

  • Organic growth. DBA plans to add 15 new monthly recurring clients in 2025. With a price point for each client at $2,000 or more per month, this goal translates to adding $30,000 in new monthly recurring revenue by year’s end. To manage quality control, DBA limits each “pod” to two new client onboardings per month.
  • Potential firm acquisition. Beyond organic growth, the Dillons are open to non-organic expansion through the right acquisition. This approach provides additional career advancement opportunities for existing team members.
  • Technology & process improvements. Newly hired Director of Technology, Angel Sabino, will evaluate DBA’s IT systems and relationships to ensure they can support future growth. The team plans to expand its use of Keeper for client workflows and more automation in their onboarding process. They also plan to eliminate software they’re not fully testing or utilizing to free up room in the budget and focus on enhancing core platforms.
  • Team development. Client Service Managers meet monthly to share best practices, while Controllers hold their own dedicated development sessions. This ensures training and collaboration throughout the year. New and existing SMEs (Payroll, Tax, QBO) serve as go-to resources for the rest of the team. DBA plans to hire additional staff, including a Controller and a new Client Service Manager Assistant through TOA Global.

“Even though goals like these can feel daunting, we break them down,” Marcus explains. “We track them month by month, adding them to our weekly meeting agendas and quarterly reviews. That way, no one person is carrying the full burden, and we can re-evaluate often.”

Personal Accountability: Small Steps, Big Payoffs

Both Rachel and Marcus rely on personal accountability to stay on track.

Fifteen years ago, Rachel began a morning weightlifting habit and hasn’t stopped. In 2024, she hit 302 workouts—exceeding her personal target of 300—by tracking each session in a free app. Visibility of her progress, especially late in the year, motivated her to stick with the plan.

“I track everything so I can see how far I’ve come,” Rachel explains. “When we traveled to New York, I still got up early because I knew I had a goal I wanted to meet.”

Marcus uses a structured approach spanning faith, marriage, health, and more. “I assign a measurable goal or metric to each category—did I do it or not?” he says. That clarity helps him refocus on days he would rather skip workouts or other commitments.

“Sometimes I literally break a workout into percentage points. If I’m halfway done, that’s 50%, and I tell myself I’m not going to quit at 50%. Same when I’m at 75%. It keeps me motivated.”

Accountability Strategies to Withstand Tax Season

How do you maintain progress toward goals when you’re knee-deep in client work? The Dillons recommend three main strategies:

  1. Break it down. Make goals specific and measurable, then divide them into weekly or daily steps. Whether it’s limiting client onboarding each month or aiming for 20-minute workouts, smaller tasks are more achievable.
  1. Keep it visible. DBA incorporates goals into weekly meeting agendas, ensuring they’re never “out of sight, out of mind.” Similarly, Rachel’s app and Marcus’s weekly check-ins with his accountability partner keep them aware of their personal targets.
  1. Stay flexible. Life happens—especially during busy season. The Dillons suggest building in reassessment milestones (e.g., a mid-year retreat in May or June) to pivot if goals no longer make sense. Instead of abandoning them, adjust and realign.

Looking Ahead: The Collective by DBA Event

For accountants seeking deeper connections and guidance, the Dillons’ peer community, Collective by DBA, is hosting an in-person event on May 5th–6th in The Woodlands, Texas (with a third-day session on May 7th for forum members and one-on-one advisory clients). 

Registration opens on January 28th, and only 50 seats are available. The retreat provides an opportunity to fine-tune your firm’s processes, swap insights with other leaders, and solidify your goals for the rest of the year.

“If it’s anything like our event last May, it’ll fill up fast,” Marcus says. “We’re building an agenda that dives into topics like firm growth, technology, and team structure—all the areas we’re working on ourselves.”

Maintaining Momentum Beyond January

While most resolutions taper off by March, the Dillons prove that real progress can happen any time of year—with the right structure. By breaking down targets, checking in frequently, and involving others, firm owners can continue working toward their goals well past busy season. Whether you’re building better habits in your personal life, scaling your firm, or both, the key is accountability—layered at the individual, team, and organizational levels.

Ready to learn more? Tune in to the Who’s Really the BOSS? podcast for the Dillons’ full conversation on goals and accountability, and consider joining them in May at Collective by DBA’s in-person event. Even in the throes of tax season, sustainable, measurable goals are possible when you have a plan—and a team—to keep you on track.

Rachel and Marcus Dillon, CPA, own a Texas-based, remote client accounting and advisory services firm, Dillon Business Advisors, with a team of 15 professionals. Their latest organization, Collective by DBA, supports and guides accounting firm owners and leaders with firm resources, education, and operational strategy through community, groups, and one-on-one advisory.

From Sponsorships to Fake Consultants—Inside the Airbus Bribery Scheme

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Modern corporate bribery rarely looks like someone handing over a briefcase of cash. It often masquerades as something legitimate: a sports sponsorship, an inflated “consulting” contract, or a generous commission payment. 

As discussed in an episode of Oh My Fraud, one of the most striking examples is the Airbus bribery scandal, which resulted in the largest bribery fine in world history—€3.6 billion.

From Watergate to the FCPA

Corporate bribery isn’t new, but its legal and ethical landscape changed significantly in the 1970s after the Watergate scandal revealed a web of illicit corporate payments. In response, Congress passed the Foreign Corrupt Practices Act (FCPA) in 1977, prohibiting bribery of foreign officials and requiring accurate financial records. The FCPA doesn’t just apply to U.S. companies; it also covers foreign companies listed on U.S. stock exchanges or operating within the United States. This means that industry giants like Airbus can face American prosecution if they’re caught bribing, no matter where they are located.

Airbus Takes Flight—and Then Self-Reports

Founded in 1970 by French, German, and British aerospace firms (Spain joined later), Airbus’s mission was to compete with American manufacturers like Boeing. By 2003, Airbus surpassed Boeing and became the world’s largest commercial aircraft maker. 

Yet in 2016, an internal Airbus audit discovered a systemic bribery operation: “secret agents” were allegedly bribing officials to secure plane sales worldwide. Faced with French laws that would revoke operating licenses for bribery convictions—and an even steeper potential fine of €8 billion—Airbus surprised everyone by self-reporting to the Parquet National Financier (PNF), France’s financial crimes investigative body.

Inside the Massive Bribery Scheme

The Airbus bribery setup was surprisingly elaborate:

Secret Agents and Shell Companies
Airbus hired intermediaries—sometimes called “secret agents”—to close deals. These agents requested large “commissions” Airbus paid to shell companies with opaque ownership. A portion of that money went to officials in Ghana, Sri Lanka, Malaysia, Taiwan, Indonesia, China, and elsewhere.

Sports Sponsorships as Kickbacks
In one example, Airbus paid $50 million to sponsor a sports team owned by an airline executive. In return, the airline ordered 180 planes. Even if each plane were the least expensive model (over $70 million apiece), Airbus captured a staggering deal in exchange for a $50 million bribe concealed as “sponsorship.”

Consulting Contracts for Spouses
Another scheme involved hiring an airline executive’s spouse as a highly paid consultant. The spouse had zero aviation experience, making it clear the contract’s real purpose was to influence purchasing decisions.

These arrangements gave Airbus “plausible deniability”: officially, they were paying for legitimate-sounding services.

The Record-Breaking Settlement

By cooperating fully after their self-disclosure, Airbus negotiated a Deferred Prosecution Agreement (DPA) rather than face trial. Under the DPA:

Historic Fine
Airbus agreed to pay €3.6 billion—the largest bribery fine ever imposed. If they hadn’t turned themselves in, estimates suggest it could have topped €8 billion.

Three-Way Split
The French PNF, the UK’s Serious Fraud Office (SFO), and the U.S. Department of Justice (DOJ) shared the settlement. The DOJ alone collected roughly half a billion euros.

Leadership Shakeup
Although he wasn’t forced out, CEO Tom Enders resigned, expressing genuine remorse and a desire for Airbus to reform. An ongoing class action lawsuit from Airbus shareholders claims the company misled investors about its business practices.

Is It Marketing or a Bribe?

One reason corporate bribery is so insidious is that it can closely resemble legitimate business development. From event tickets to lavish client dinners, there is often no bright line defining when hospitality veers into bribery. Private-sector organizations don’t always have a rigid gift limit—like the $20 rule, the U.S. military has—making it even harder to police.

According to the 2024 ACFE Report to the Nations, the median loss to corruption is $200,000. Yet tracking actual losses is complicated. In Airbus’s case, officials needed new aircraft either way, so the “loss” might be seen as switching from one vendor to another for questionable reasons. It underscores how intangible “costs” can be when bribes drive commercial decisions.

Lessons for Finance Professionals

The Airbus scandal highlights a rapidly evolving corruption landscape:

Structural Sophistication
Bribes are concealed through sponsorships, commissions, and consulting contracts rather than suitcases of cash.

Gray Areas vs. Bright Lines
Understanding intent is crucial. Based on purpose and scale, the same “thank you” gift can be innocent or corrupt.

Robust Compliance Measures
Basic compliance and traditional red flags may fail to uncover cleverly disguised bribery. Periodic internal audits, detailed transaction analysis, and cultural shifts emphasizing ethics are vital.

Global Enforcement
In an interconnected world, bribery probes are often multinational. Being listed or doing business in certain countries (like the U.S.) exposes companies to multiple layers of enforcement.

In the end, Airbus’s self-reporting likely saved the company from greater financial and operational damage, yet the scandal still cost billions and tarnished its reputation. To hear a more in-depth discussion of how Airbus got “AirBusted,” check out the full Oh My Fraud podcast episode.

DC Solar’s Billion-Dollar Green Energy Con

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The following article is based on the “Burned by Solar” episode of the Oh My Fraud podcast, which provides a behind-the-scenes look at how DC Solar orchestrated one of the largest green energy frauds in U.S. history.

In December 2018, 175 federal agents from the FBI, IRS, and U.S. Marshals raided the headquarters of DC Solar and the California home of its CEO, Jeff Carpoff (sometimes spelled “Karpov” in news reports). This dramatic event unveiled one of the largest frauds ever prosecuted in the Eastern District of California—a scheme that claimed to sell 17,000 portable solar generators when, in reality, only about 6,000 existed.

Origins and Ambitions

Jeff Carpoff spent most of his life in Martinez, California. After failing to run successful auto repair shops and briefly selling drugs, he sobered up and co-founded a shop specializing in Land Rover repairs. Eventually, he latched onto a promising idea—creating portable, solar-powered generators he called the “Solar Eclipse.” This invention would supposedly replace traditional gas or diesel generators on movie sets, at disaster sites, and even in stadium parking lots during tailgates.

DC Solar marketed these generators as versatile, eco-friendly power sources that could be towed anywhere to provide clean energy. While the vision looked sound, it was the business model—centered on a lucrative federal tax credit—that truly turned heads among investors.

The 30% Tax Credit Hook

The U.S. government offered a 30% tax credit for investments in alternative energy equipment, including solar. DC Solar pitched a straightforward proposition to prospective investors:

  1. Purchase DC Solar’s generators, sold at a hefty price of $150,000 each.
  2. Pay only 30% of that cost upfront (the exact amount investors would recoup via the federal tax credit).
  3. DC Solar would cover the remaining 70% of the purchase price through lease revenue.

In theory, investors could fully offset their upfront cost with tax credits—and possibly earn additional returns if leasing income exceeded loan payments. Companies like Sherwin-Williams, T-Mobile, and even Warren Buffett’s Berkshire Hathaway bought into the hype, hoping to cut their tax bills while backing a “green” initiative.

Early Warning Signs

Despite its promise, DC Solar’s operations quickly drew skepticism. During a visit to one of the company’s facilities, Sherwin-Williams representatives discovered only a few rows of fully assembled units. Behind them, dozens of unfinished generator shells suggested the product was far less complete than advertised. Confronted about it, Carpoff reportedly brushed the issue aside.

Other troubling red flags emerged:

  • Performance Failures: Some trailers lost power on major film sets and at concerts, forcing DC Solar to sneak in diesel generators to cover the outage.
  • Lease Rate Discrepancies: DC Solar claimed that 80–90% of its generators were leased out, but internal accounts put the rate closer to 5%.

Faced with cash flow pressures, the company devised a “circular” approach: using money from new investors to fulfill lease payments it had promised to earlier investors. Internally, DC Solar employees allegedly referred to this patchwork as “re-renting,” but investigators later described it as classic Ponzi activity.

Fraudulent Tactics

To sustain the illusion, DC Solar:

  • Faked VINs: Employees scraped VIN stickers off certain generators and reapplied them onto others, matching whatever batch investors expected to see.
  • Synthetic Tracking: GPS transponders were buried in vacant fields so investors believed their units were deployed.
  • Paper Leases: Executives fabricated large, long-term leasing contracts with major telecom and entertainment companies, sometimes enlisting outside patsies to sign phony agreements in exchange for sizeable payouts.

Meanwhile, Carpoff and his wife, Paulette, enjoyed the spoils. They amassed a fleet of 149 classic cars—many of them gas-guzzling muscle cars, paradoxically funded by a “green energy” enterprise—purchased stakes in a Napa winery, rented private jets, and even sponsored a NASCAR race (the DC Solar 300). They also bought the Martinez Clippers, an independent league baseball team, and emblazoned their company parking spots with initials like “JMFC,” short for “Jeff Motherf***** Carpoff.”

The Whistleblower and the Raid

The scheme began to unravel when a DC Solar employee, Sebastian Giuliano, realized the company was paying old investors with new investor money and filed a whistleblower report to the SEC. Suspicions deepened when the IRS audited some of DC Solar’s earliest deals, concluding that the actual fair market value of each generator was around $13,000—far below the $150,000 asking price.

In December 2018, armed with information from the whistleblower and their own investigations, federal agents descended on DC Solar’s facilities and the Carpoff residence. They seized $1.7 million in cash from a safe, confiscated the entire muscle car collection, and gathered further evidence of fraud.

Aftermath and Sentencing

DC Solar collapsed into bankruptcy by early 2019, owing millions to creditors, NASCAR, racetracks, and various vendors. Major investors, including Berkshire Hathaway, announced the probable loss of hundreds of millions of dollars in invalidated tax credits.

Criminal charges soon followed. In 2020, Jeff Carpoff pleaded guilty to conspiracy to commit wire fraud and money laundering; he was sentenced to 30 years in prison. His wife, Paulette, received an 11-year prison term. Several other executives, including the CFO and outside conspirators who fabricated leases or faked verification reports, also received prison sentences ranging from three to eight years.

Lessons and Oversight Gaps

DC Solar’s downfall highlights several vulnerabilities in green energy tax credit oversight:

  1. Physical Verification: Authorities relied too heavily on documents without insisting on direct, thorough inspections. Fake VINs and strategically placed GPS devices allowed DC Solar to fabricate nearly 11,000 nonexistent generators.
  2. Valuation Transparency: Inflated price tags ($150k vs. $13k real value) went unchecked, maximizing undeserved credits.
  3. Circular Financing Scrutiny: Leasing revenue was artificially maintained with new investor funds, a hallmark of Ponzi schemes, yet it initially escaped scrutiny.
  4. Due Diligence and Audits: Complex alternative energy incentives require rigorous checks to confirm the actual equipment, usage, and economic substance of each deal.

For accountants, attorneys, and investors, the DC Solar saga is a sobering lesson. Fraudsters can exploit these incentives no matter how appealing a tax benefit or environmentally friendly pitch may sound. Robust financial controls, thorough audits, and consistent physical verifications are key to safeguarding genuine green energy efforts.

For a more in-depth exploration of DC Solar’s rise and fall—and the comedic twists along the way—listen to the Oh My Fraud podcast episode linked above. The story of DC Solar stands as a testament to how easily good intentions and generous credits can be warped into massive fraud when accountability is lax.