A anaerobic methane digester is seen on the left side of this image from Dairy Cares.

A Porterville man pleaded guilty Monday in what federal prosecutors called a nearly $9 million cow manure Ponzi scheme.

Ray Brewer, 66, admitted to 24 counts of wire fraud, money laundering and aggravated identity theft, according to U.S. Attorney McGregor W. Scott. From March 2014 through December 2019, Brewer stole at least $8.7 million from investors in his now defunct Tulare-based company, CH4 Power.

Brewer was found guilty of falsifying his intent to build anaerobic digesters at dairies in Fresno, Kings, Kern and Tulare counties, as well as other locations in California and Idaho. Digesters are large machines that convert cow manure into renewable methane gas that can be sold, generating returns for investors. Such projects also generate renewable energy tax credits that can be sold to help other companies meet green energy goals.

Brewer told investors they would receive 66% of net profits from the venture.

Brewer did refund some investors all or some of their money, but did so with funds received from other investors who had not authorized him to do so.

Brewer also made misrepresentations to investors, providing tours of dairies where he said digesters would be built as well as sending them forged lease agreements with the dairy owners.

He also altered bank agreements to appear as though he had obtained loans for millions of dollars to construct the digesters, as well as sending investors forged contracts providing proof of revenue streams.

Records indicate Brewer instead transferred funds to multiple bank accounts under a variety of different names, including family members and an alias, and also used investors’ money for personal transactions including a 3,700 square-foot custom residence, as well as new vehicles and property in Montana.

After investors pursued a civil judgment against him, Brewer moved to Montana and assumed a new identity prior to his arrest in late 2020.

Brewer could face up to 20 years in prison and a fine of up to $250,000 for the wire fraud charges. He could also face 10-20 years and fines of up to $250,000 – $500,000 (or twice the amount of funds involved – whichever amount is greater) for money laundering.

Brewer also faces a potential two-year sentence consecutive to other sentencing if convicted of aggravated identity theft.

Sentencing is scheduled for June 26 in Fresno under U.S. District Judge Jennifer L. Thurston.