The State of Arkansas has ordered Dragonfly Industries International, LLC to cease and desist.
The company was at the center of a controversy around a proposed wind farm in Elm Springs.
A November 2015 KNWA investigation revealed that Jody Davis, the CEO of Dragonfly Industries, was sentenced to prison six years ago for embezzling more than $1 million from an Oklahoma company.
In March 2016, Elm Springs residents voted down the controversial wind farm proposal.
Now, the Arkansas Securities Department is accusing Dragonfly Industries of fraud here in Arkansas. The department’s report says Davis failed to tell wind farm investors about his embezzlement charges and lied about a government grant, telling investors he was likely to receive a $10 million grant from the U.S. Department of Energy when the DOE had already indicated it would reject the proposal.
David and Dragonfly have been ordered to cease and desist “all actions constituting securities fraud” in Arkansas.