AND COMPANY PLEDGING TO BUY BONDS DOES NOT EXIST ACCORDING TO CALIFORNIA RECORDS,

UPDATED WITH NEW INFORMATION FROM LAS VEGAS, NV

Rio Rancho has stated its intention to issue $500 million in industrial revenue bonds on the basis of a letter of credit presented by a company with its headquarters in a UPS store in Las Vegas, Nevada. On April 14, 2010, the Rio Rancho City Council passed its resolution after considering a letter from OCS Capital Group conveying a letter of credit for $500 million to back industrial revenue bonds for solar start-up Green2V. But OCS Capital’s “corporate office” is nothing more than a mail drop on the west side of Sin City.

OCS Capital presented a letter of credit from GP3, Ltd. of Los Angeles, California. The letter of credit assured Rio Rancho that Green2V had a purchaser for the half billion dollars of IRBs. OCS’s letter explained how the bonds would work.  They would not be offered to the public, but sold only to GP3, which would then be in the position of loaning Green2V $500 million.

Here is the video of the council discussion of the Green2V resolution, including discussion of the OCS Capital letter.

As part of the package, Rio Rancho committed to spend about $7.5 million to build roads and sewers for Green2V.  The company once said it would purchase the land with its own funds.  But now Rio Rancho will purchase the land for Green2V from the State Land Office with $6.9 million of the bond money.

OCS Capital Isn’t Real

"Suite 664"

New Mexico Watchdog checked out the address for the “corporate office” of OCS Capital, listed on its website as 9030 West Sahara, Suite 664, Las Vegas, Nevada. There is nothing at that address but a UPS store…and a mail drop numbered 664.  This is a photo of the “corporate office” of OCS Capital. That’s all there is.

Our investigation of OCS Capital began during the past week, before the Albuquerque Journal’s front page story today by Rosalie Rayburn raising questions about Green2V’s plans to build a million square foot plant in Rio Rancho that it promises will produce solar power components and employ 1,500 people.

Green2V’s very curious letter of credit: related report

That the letter of credit was presented to the city by a company whose “corporate office” is a UPS mail drop raises questions about GP3 itself.  What kind of company with $500 million to lend would use the services of a deceptive entity like OCS Capital?  If OCS Capital isn’t real, what about GP3?

GP3, Ltd. Does Not Exist, According to Records of California Secretary of State

Green2V, says the Journal report, is no longer using the services of OCS Capital, but is working directly with GP3, Ltd. But Green2V won’t disclose any information about who GP3, Ltd., is, other than say they are in Los Angeles, CA, and to describe them as “a private equity partnership focused on environmental and green solutions.”

New Mexico Watchdog has learned that no limited partnership called GP3 exists in California according to the records of the California Secretary of State.  The only limited partnerships with the term “GP3″ in their titles have had their partnership status canceled.  One was GP3 Asset Acquisition, LLC, which was formed in 2007.  It traces back to an Ann Arbor, Michigan, address, but is no longer a recognized limited partnership in California.  The other was entitled Walton 425 GP3 IV, and traces back to a Chicago address.  But its status as a limited partnership in California has also been canceled.

There is a GP3, Inc., in Walnut, California.  That is a small business management consulting firm, not an investment firm with $500 million to lend.

Rayburn reported she could find no reference for GP3, Ltd., on the Internet.

GP3, Ltd…..Las Vegas, Nevada

An article by Dennis Domrzalski of New Mexico Business Weekly quotes a George Peters, identified as president of GP3, Ltd., of Los Angeles, California.  There is no GP3, Ltd. of Los Angeles according to the California Secretary of State, but a Lexis-Nexis search found a GP3, Ltd. of Las Vegas, Nevada.  Its president, oddly enough, is named Geoffrey A. Peters.

The GP3, Ltd of Nevada partnership was filed with the Nevada Secretary of State only on January 25, 2010. Its business is listed as 3225 McLeod Drive #100, Las Vegas, Nevada.   The Google Earth photo for the location shows a residential area and a small office park.  But GP3, Ltd. is not among the businesses listed as having a physical presence at the location.  Just as we did with OCS Capital, New Mexico Watchdog will check out the GP3, Ltd. Las Vegas address to see what’s there.

Here’s what Google Earth shows:

View Larger Map

At #110 3225 McLeod is Acorn Corporate Services, one of those businesses that acts as the registered agent for business entities and provides the documentation and filing to create corporations and partnerships. It apparently is also known as BOSS Business Services, one of the companies that is listed as physically present at this address.  Acorn is the registered agent for GP3, Ltd. of Nevada.

Another document from the Nevada Secretary of State shows that GP3, Ltd. has been dissolved as of 1/29/10, subsequent to the filing of its partnership papers on 1/25/10.  UPDATE:  An astute reader (who also happens to be lawyer) did his own review of Nevada documents and found that two GP3 Ltds were registered the same day, both by Acorn Corporate Services, and both with the exact same address of #100 3225 McLeod.  One of the GP3′s four days later dissolved.  The GP3 bearing Peters’ name as president was not dissolved.