Sequatchie Reaction To Manteria Ponzi Scheme Charges

     A local county is left wondering about a new business after the SEC charges Mantria with fraud.
     The bio-refinery plant, moved into Dunlap two months ago, but to some skepticism.
     Now federal officials are saying it's part of a ponzi scheme, but company officials say otherwise.
     WDEF News 12's Mandy Odom has the reaction from Sequatchie County.
     Neighbor Sheena Cantero says, "This is suppose to be like this little private, country little street, and I don't really foresee them being up here."
     Sheena Cantero lives down the street from Manteria Corporation.
     When the company first moved in it promised jobs by turning waste into biochar, a kind of fuel to produce energy.
     It was also going to develop the area, building houses and golf courses.
     Former Chamber of Commerce Executive Director Howard Hatcher says, "Employment was very important for us, and we like any new business we wanted them to succeed."
     The Securities and Exchange Commission accuses Mantria and another company of raising more than 111-million dollars in a variety of securities fraud schemes.
     The indictment claims they targeted the elderly and those nearing retirement.
     Hatcher says, "I did not understand how they could accomplish what they said they were going to accomplish particularly during these economic times." and "It's a free enterprise system, so you stand back and people invest their money and you see what happens."
     Mantria Corporation officials say, "We deny all the allegations raised by the SEC against Mantria and its principals and we are preparing our defense. We hope to obtain a favorable resolution of this matter. In the interim, we will continue to market our waste-to-energy systems, bio-char and related bio-products and our residential real estate communities."
     Cantero says if the charges are true, it's ridiculous.
     She says, "Cause this is suppose to be a nice town where everybody comes and retires and stuff and they're making it look bad. Taking advantage of people. It's wrong anyways."
     In Sequatchie County, Mandy Odom, WDEF News 12.
     Prosecutors say the investments actually went to pay off earlier investors.